Almohammady S. Alsharkawy

Ahmed N. Bakry, Almohammady S. Alsharkawy, Mohamed S. Farag et al.

Anti-Money Laundering (AML) is a crucial task in ensuring the integrity of financial systems. One keychallenge in AML is identifying high-risk groups based on their behavior. Unsupervised learning, particularly clustering, is a promising solution for this task. However, the use of hundreds of features todescribe behavior results in a highdimensional dataset that negatively impacts clustering performance.In this paper, we investigate the effectiveness of combining clustering method agglomerative hierarchicalclustering with four dimensionality reduction techniques -Independent Component Analysis (ICA), andKernel Principal Component Analysis (KPCA), Singular Value Decomposition (SVD), Locality Preserving Projections (LPP)- to overcome the issue of high-dimensionality in AML data and improve clusteringresults. This study aims to provide insights into the most effective way of reducing the dimensionality ofAML data and enhance the accuracy of clustering-based AML systems. The experimental results demonstrate that KPCA outperforms other dimension reduction techniques when combined with agglomerativehierarchical clustering. This superiority is observed in the majority of situations, as confirmed by threedistinct validation indices.

Khaled SH. Raslan, Almohammady S. Alsharkawy, K. R. Raslan

Classifying imbalanced datasets remains a significant challenge in machine learning, particularly with big data where instances are unevenly distributed among classes, leading to class imbalance issues that impact classifier performance. While Synthetic Minority Over-sampling Technique (SMOTE) addresses this challenge by generating new instances for the under-represented minority class, it faces obstacles in the form of noise and outliers during the creation of new samples. In this paper, a proposed approach, iHHO-SMOTe, which addresses the limitations of SMOTE by first cleansing the data from noise points. This process involves employing feature selection using a random forest to identify the most valuable features, followed by applying the Density-Based Spatial Clustering of Applications with Noise (DBSCAN) algorithm to detect outliers based on the selected features. The identified outliers from the minority classes are then removed, creating a refined dataset for subsequent oversampling using the hybrid approach called iHHO-SMOTe. The comprehensive experiments across diverse datasets demonstrate the exceptional performance of the proposed model, with an AUC score exceeding 0.99, a high G-means score of 0.99 highlighting its robustness, and an outstanding F1-score consistently exceeding 0.967. These findings collectively establish Cleansed iHHO-SMOTe as a formidable contender in addressing imbalanced datasets, focusing on noise reduction and outlier handling for improved classification models.