Payments related fraud is a key aspect of cyber-crime agencies and recent research has shown that machine learning techniques can be applied successfully to detect fraudulent transactions in large amounts of payments data. Such techniques have the ability to detect fraudulent transactions that human auditors may not be able to catch and also do this on a real time basis. In this project, we apply multiple supervised machine learning techniques to the problem of fraud detection using a publicly available simulated payment transactions data. We aim to demonstrate how supervised ML techniques can be used to classify data with high class imbalance with high accuracy. We demonstrate that exploratory analysis can be used to separate fraudulent and nonfraudulent transactions. We also demonstrate that for a well separated dataset, treebased algorithms like Random Forest work much better than Logistic Regression.

Publication Date


Document Type

Master's Project

Student Type


Degree Name

Professional Studies (MS)

Department, Program, or Center

Graduate Programs & Research (Dubai)


Sanjay Modak

Advisor/Committee Member

Ioannis Karamitsos


RIT Dubai