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Applying Migrating Birds Optimization to Credit Card Fraud Detection

  • Ekrem Duman
  • Ilker Elikucuk
Part of the Lecture Notes in Computer Science book series (LNCS, volume 7867)

Abstract

We discuss how the Migrating Birds Optimization algorithm (MBO) is applied to statistical credit card fraud detection problem. MBO is a recently proposed metaheuristic algorithm which is inspired by the V flight formation of the migrating birds and it was shown to perform very well in solving a combinatorial optimization problem, namely the quadratic assignment problem. As analyzed in this study, it has a very good performance in the fraud detection problem also when compared to classical data mining and genetic algorithms. Its performance is further increased by the help of some modified neighborhood definitions and benefit mechanisms.

Keywords

migrating birds optimization algorithm fraud credit cards genetic algorithms 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Ekrem Duman
    • 1
  • Ilker Elikucuk
    • 2
  1. 1.Faculty of Engineering, Industrial Engineering DepartmentÖzyeğin UniversityIstanbulTurkey
  2. 2.Intertech, Decision Support Systems DepartmentIstanbulTurkey

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