Stacked Generalizations in Imbalanced Fraud Data Sets using Resampling Methods
This addresses fraud detection challenges in financial domains, though it appears incremental as it builds on existing stacked generalization and resampling techniques.
The study tackled the problem of imbalanced fraud data by applying stacked generalization with resampling methods, demonstrating improved performance metrics that justify increased computational costs.
This study uses stacked generalization, which is a two-step process of combining machine learning methods, called meta or super learners, for improving the performance of algorithms in step one (by minimizing the error rate of each individual algorithm to reduce its bias in the learning set) and then in step two inputting the results into the meta learner with its stacked blended output (demonstrating improved performance with the weakest algorithms learning better). The method is essentially an enhanced cross-validation strategy. Although the process uses great computational resources, the resulting performance metrics on resampled fraud data show that increased system cost can be justified. A fundamental key to fraud data is that it is inherently not systematic and, as of yet, the optimal resampling methodology has not been identified. Building a test harness that accounts for all permutations of algorithm sample set pairs demonstrates that the complex, intrinsic data structures are all thoroughly tested. Using a comparative analysis on fraud data that applies stacked generalizations provides useful insight needed to find the optimal mathematical formula to be used for imbalanced fraud data sets.