Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning

Haibing LI, Man Leung WONG

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review

7 Citations (Scopus)

Abstract

Financial fraud is a criminal act, which violates the law, rules or policy to gain unauthorized financial benefit. The major consequences are loss of billions of dollars each year, investor confidence or corporate reputation. A study area called Financial Fraud Detection (FFD) is obligatory, in order to prevent the destructive results caused by financial fraud. In this study, we propose a new method based on Grammar-based Genetic Programming (GBGP), multi-objectives optimization and ensemble learning for solving FFD problems. We comprehensively compare the proposed method with Logistic Regression (LR), Neural Networks (NNs), Support Vector Machine (SVM), Bayesian Networks (BNs), Decision Trees (DTs), AdaBoost, Bagging and LogitBoost on four FFD datasets. The experimental results showed the effectiveness of the new approach in the given FFD problems including two real-life problems. The major implications and significances of the study can concretely generalize for two points. First, it evaluates a number of data mining techniques by the given real-life classification problems. Second, it suggests a new method based on GBGP, NSGA-II and ensemble learning.
Original languageEnglish
Title of host publication2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1113-1120
Number of pages8
DOIs
Publication statusPublished - 1 Jan 2015

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Genetic programming
Adaptive boosting
Bayesian networks
Decision trees
Multiobjective optimization
Support vector machines
Data mining
Logistics
Neural networks

Bibliographical note

Paper presented at the 2015 IEEE Congress on Evolutionary Computation (CEC), 25-28 May 2015, Sendai, Japan.
ISBN of the source publication: 9781479974924

Cite this

LI, H., & WONG, M. L. (2015). Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning. In 2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings (pp. 1113-1120). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/CEC.2015.7257014
LI, Haibing ; WONG, Man Leung. / Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning. 2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings. Institute of Electrical and Electronics Engineers Inc., 2015. pp. 1113-1120
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LI, H & WONG, ML 2015, Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning. in 2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings. Institute of Electrical and Electronics Engineers Inc., pp. 1113-1120. https://doi.org/10.1109/CEC.2015.7257014

Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning. / LI, Haibing; WONG, Man Leung.

2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings. Institute of Electrical and Electronics Engineers Inc., 2015. p. 1113-1120.

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review

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LI H, WONG ML. Financial fraud detection by using grammar-based multi-objective genetic programming with ensemble learning. In 2015 IEEE Congress on Evolutionary Computation, CEC 2015 - Proceedings. Institute of Electrical and Electronics Engineers Inc. 2015. p. 1113-1120 https://doi.org/10.1109/CEC.2015.7257014