Detection of Credit Card Fraud with an Autoencoder

Do you want to know how to create an anomaly detector using Python and TensorFlow? Then this article is for you. Credit card companies use anomaly detectors to detect fraudulent transactions. It is important to identify fraudulent transactions so that customers do not have to pay for something they did not buy.

Many credit card transactions take place every day, but very few transactions are fraudulent. The fraudulent transactions are anomalies. The article presents an implementation of an autoencoder model to detect these fraudulent transactions.

We’ll discuss the following points:

• Anomaly detection in general

  • Anomaly definition

  • Types of anomalies

  • Anomaly detection

• Autoencoder concept

• Credit Card Fraud Detection Implementation

• Data Preparation

• Modeling

• Evaluation

• Conclusion