Tech Science Press

DOI: 10.32604/iasc.2023.037606
Article

Intelligent Financial Fraud Detection Using Artificial Bee Colony

Optimization Based Recurrent Neural Network
T. Karthikeyan1, *, M. Govindarajan1 and V. Vijayakumar2

1
Department of Computer Science and Engineering, Annamalai University, Annamalai Nagar, Tamil Nadu, India
2
Department of Computer Science and Engineering, Sri Manakula Vinayagar Engineering College, Puducherry, India
*Corresponding Author: T. Karthikeyan. Email: [email protected]
Received: 10 November 2022; Accepted: 10 March 2023; Published: 23 June 2023

Abstract: Frauds don’t follow any recurring patterns. They require the use of
unsupervised learning since their behaviour is continually changing. Fraud-
sters have access to the most recent technology, which gives them the ability
to defraud people through online transactions. Fraudsters make assumptions
about consumers’ routine behaviour, and fraud develops swiftly. Unsupervised
learning must be used by fraud detection systems to recognize online payments
since some fraudsters start out using online channels before moving on to
other techniques. Building a deep convolutional neural network model to
identify anomalies from conventional competitive swarm optimization pat-
terns with a focus on fraud situations that cannot be identified using historical
data or supervised learning is the aim of this paper Artificial Bee Colony
(ABC). Using real-time data and other datasets that are readily available,
the ABC-Recurrent Neural Network (RNN) categorizes fraud behaviour
and compares it to the current algorithms. When compared to the current
approach, the findings demonstrate that the accuracy is high and the training
error is minimal in ABC_RNN. In this paper, we measure the Accuracy, F1
score, Mean Square Error (MSE) and Mean Absolute Error (MAE). Our
system achieves 97% accuracy, 92% precision rate and F1 score 97%. Also
we compare the simulation results with existing methods.

Keywords: Fraud activity; optimization; deep learning; classification; online

transaction; neural network; credit card

1 Introduction
The current state of traditional commerce is changing as a result of virtual businesses and the
internet. E-commerce has greater value now that there is a worldwide market, more freedom, and
more competition. E-commerce also makes it simpler and more accessible to innovate in the banking
and payment sectors. E-commerce makes life simple for users, whether they are consumers or business
owners. It is important in the more competitive and global economy [1]. People are moving away from
conventional markets and toward the growing global market. It has a variety of restrictions in addition

This work is licensed under a Creative Commons Attribution 4.0 International License,
which permits unrestricted use, distribution, and reproduction in any medium, provided
the original work is properly cited.
1484 IASC, 2023, vol.37, no.2

to providing customers with conveniences. For e-commerce or the digital market, online payment is
essential [2].
The demand for the financial and banking sectors has grown as the size of the global market
has expanded. With the use of smart devices like a laptop, mobile phone, desktop, personal digital
assistance (PDA), etc., online payments enable you to conduct transactions from any location, at any
time [3]. The elimination of traditional commerce’s constraints is the primary driver of the expansion
of electronic payments. The user may physically visit the bank to complete the transaction without
having to wait in a big line. It offers a number of advantages, such as speedier transactions that may
be completed in a matter of minutes without having to visit a bank or wait in line [4].
There are two methods of execution both online and offline electronic payments. Virtual payment
may be recognized as online payment. Account holder name, Postal Index Number (PIN), card
number, expiration date, and other sensitive details are needed for online payments [5]. Physical
payment can be identified as offline payment. Cardholder presence and PIN are needed for offline
payments. The first item needed for online payment fraud is a cardholder’s credit card number. These
frauds can be carried out in a variety of ways. Phishing, identity theft, skimming, using lost or stolen
credit cards, card cloning, etc. are some common techniques for online credit card fraud [6].
In addition to these techniques, there are other systems that enable credit card fraud, such as
malware or key loggers that may steal credit card information during an online transaction, or
scanning equipment that can read your credit card information. Online payments make the procedure
simpler even though they don’t require a signature or your card’s PIN information. Most websites steal
card information and sell it to other parties; many fraudsters are active on the dark web, making them
tough to catch [7,8]. There are several payment methods on the market that may be used for online
purchases.
Depending on their needs and preferences, users use various payment methods. There are many
different kinds of payment methods, including credit cards, debit cards, net banking, and electronic
wallets. The danger associated with online payments is another reason why over 60% of Internet users
still favor the Cash on Delivery (COD), payment method [9,10]. CC is a popular, widely used, and
promising electronic payment method for online purchasing. As banks are giving customers credits
for transactions that last a certain amount of time. Customer can choose to pay using CC with ease.
Today, more people are using online payment methods [11]. The credit card is used both online and
offline [12].
The Reserve Bank is attempting to strengthen security in light of the increasing incidence of
cybercrimes. In particular, a digital transaction is seeing significant increase nowadays. The goal of
the central bank is to improve cyber risk security [13]. This is to assure constant security in addition to
the evolving types of security extortion on the internet. Electronic Commerce (E-Commerce) is widely
available in the Indian market. It now offers facilities to organizations of all ages. Where customers
may conveniently purchase online. In comparison to offline or conventional shopping methods, it
offers the current generation additional advantages. E-commerce provides a vast array of options,
amenities, discounts, and promotions [14]. The remainder of the article is organized as follows, the
existing approaches are given in Section 2, the proposed methodology is elucidated in Section 3, the
results are discussed in Section 4, and the article is concluded in Section 5.
IASC, 2023, vol.37, no.2 1485

2 Literature Review
India has tapped into the global market by attracting the interest of foreign businesses. Users’
interest in online buying has risen due to additional facilities and offers [15]. In the digital world,
fraud detection is seen as a critical procedure, and this article focuses on the classification of fraud
activities. For the competitive swarm-based deep convolutional neural network-based categorization
of legitimate and fraudulent transactions, an efficient optimization-based technique is created.
Sequence and static learners can achieve the credit card fraud classification [16]. The generalised
adversarial network, which is based on deep learning, is used to perform the classification procedure
[17]. Support vector machines, recurrent neural networks and Auto Encoder based Restricted Boltz-
mann Machines (AERBM) are deep learning- and machine learning-based approaches, respectively,
that are used to classify credit card fraud [18].
Using a hybrid data resampling approach and a neural network ensemble classifier, an efficient
method for identifying credit card fraud [19]. The ensemble classifier in the adaptive boosting
(AdaBoost) method is built utilising a long short-term memory (LSTM) neural network as the
basis learner. In the meanwhile, hybrid resampling is carried out using the edited nearest neighbour
method and the synthetic minority oversampling methodology. The utility of the proposed strategy is
demonstrated using publicly accessible real-world credit card transaction datasets. Machine learning
(ML)-based methods for detecting fraudulent credit card transactions have been described in recent
study, however their detection scores still need to be improved because of the imbalance of classes in
any given dataset. A few approaches have generated remarkable results on diverse datasets [20].
Internet-enabled worldwide online communication has boosted credit card theft, which costs
customers and financial institutions billions of dollars every year in lost revenue. The thieves always
come up with new schemes to carry out illicit activities. Therefore, it is essential to combat fraud using
novel detection methods in order to reduce these losses. This study describes the staking ensemble
strategy for combining many classifiers to identify credit card fraud. The categorization method in
the current system has the issue of being incapable of processing fast computation. Error frequency
might result in misclassification. The current approach is inefficient due to the computational cost
and accuracy. Low data amount and low training quality are both problems. An efficient recurrent
neural network based on Artificial Bee Colony optimization is created by taking these limitations into
account.

3 Existing System
The complexity of the network also rises as the number of levels develops. The depth of the network
is often increased by adding more layers or recurrent connections, which enables the network to do
“deep learning,” or several degrees of feature extraction and data representation. The higher layers of
these networks, which are often constructed from nonlinear but basic units, provide a more abstract
representation of the data and reduce unwelcome variability. Recurrent Neural Networks (RNNs),
which are Artificial Neural Network (ANN) with recurrent connections and can represent sequential
input for sequence recognition and prediction, are a subclass of ANNs. High-dimensional hidden
states with non-linear dynamics make up RNNs. The network’s memory is implemented in the hidden
state structure, and each layer’s current state is dependent on its previous state.
The RNNs can store, recall, and process historical complicated signals for extended periods of
time thanks to their structure. RNNs are able to predict the sequence in the following time step
and transfer an input sequence to an output sequence in the present time step. RNN training has
1486 IASC, 2023, vol.37, no.2

greatly benefited from the development of back-propagation utilizing gradient descent (GD). The
development of RNNs has advanced practically because of this straightforward training method.
Long Short Term Memory (LSTM) networks were introduced by and to estimate the sequence of
transactions. LSTM improved accuracy in detecting offline transactions when cardholders are physi-
cally present at merchant sites when comparing to the basic classification of the Russian Federation.
Manual feature merging routines are useful for both sequential and non-sequential training systems.
After reviewing the true positives, it was found that both methodologies detect different types of fraud,
indicates that both can be used together.
Scalable Real-time Fraud Finder which was a combination of Kafka, Spark and Cassandra
and computer vision to eliminate imbalances, non-stationary attributes and feedback delays. Theirs
experimental results on large databases of credit card transactions showed that their approach was
accurate, efficient, and scalable on most transactions. Time series eigen sequences for transaction
similarity, where the evaluated transactions sequence. A time simulation strategy in this context may
be more robust to modest changes in actual purchasing behavior. LSTMs combined with SVMs
were experimented with real-time credit card transactions. The research focused on making the right
choices features, data pre-processing and evaluation metrics to provide a clear basis for comparison,
where the latter will facilitate comparison of results obtained from oriented datasets. Large real-world
transactional data sets have shown that their proposed technique significantly improves the accuracy
of alerts, the key the concern of fraud investigations.
To detect behavioral patterns of fraud while learning labeled data and proposed a CNN for fraud
detection where feature matrices represented large amounts of transactional data. CNN is used for
estimation inactive patterns or patterns in the data and when tested on real bank transactions it
was demonstrated that their technique outperformed many other existing approaches. The increase
in activity in terms of online shopping makes it clear that users’ transaction behavior is often different
and their behaviours must be able to determine the variability of transactions. Conventional models are
not enough for such consumers and therefore this work focuses on detecting fraudulent transactions
based on a user’s behaviours.

4 Proposed System
This section elaborates the process of feature selection and classification of credit card fraud
activity. The significant features are reclaimed using artificial bee colony optimization approach that
is utilized by the convolutional neural network for classification of credit card fraud. The Artificial
Bee Colony (ABC) optimization algorithm is a new stochastic population based meta heuristics
optimization algorithm. It is good in exploring the search space efficiently. It is based on the foraging
behavior of the honey bees to explore the new food sources. The process of initialization is given as,
ami = li + rand (0, 1) ∗ (ui − li ) (1)
where the food sources are indicated by ami , the upper and lower bound is indicated as ui and li ,
respectively. The phases of ABC optimization algorithm are,
Employee bee phase: The employee bees search for the food sources and bring the nectar from
the food sources to their hives and perform a wangle dance in the dance area allocated in hive. The
nearby source of food is given as,
bmi = ami + ∅mi (ami − aki ) (2)
IASC, 2023, vol.37, no.2 1487

where randomly opted source of food is indicated as aki , index is indicated as i, and the range of random
number ∅mi is [−a, a]. A new source of food bmi and its fitness is estimated whereby selection of greedy
technique is employed among bmi and ami .
Onlooker bee phase: The onlooker bees select the best employed bee having the highest nectar
amount by the dance they perform. The bee which dances faster is the bee having large amount of
nectar. The value of probability is expressed as,
→
fitm am
pm =  → (3)
SN
m=1
fit m am

Scout bee phase: The scout bee is the bee which explores new search space having the food source.
Initial direction of food source is found by the scout bees which are followed by employed bees.
The ABC algorithm is good in exploration because of the scout bee phase with random search
space of the problem domain but poor at exploitation and have slow convergence rate. In literature,
standard ABC algorithm is improved by introducing randomization strategies to enhance the exploita-
tion and exploration level. The ABC algorithm is suitable to find the optimal multicast tree satisfying
the QoS constraint since they have the good exploration level. Since the ABC algorithm finds the
global optimum in lesser time, it is highly applicable in large dynamic environments.

Algorithm 1. Proposed ABC for feature selection

Initialize the population of solutions xi, j , i = 1 . . . SN, j = 1 . . . D
Evaluate the population
cycle = 1
repeat
Produce new solutions υ i, j for the employed bees by using (2) and evaluate them
Apply the greedy selection process
Calculate the probability values Pi, j for the solutions xi, j by (1)
Produce the new solutions υ i, j for the onlookers from the solutions xi, j selected depending on Pi, j
and evaluate them
Apply the greedy selection process
Determine the abandoned solution for the scout, if exists, and replace it with a new randomly produced
solution xi, j by (3)
Memorize the best solution achieved so far
cycle = cycle + 1
until cycle = MCN

Finding the optimal multicast tree using ABC algorithm necessitates to find the path established
by the bees with the minimum value for the objective function. Normally, the standard ABC algorithm
helps in promoting good exploration level by handling the problems over entire search space. Mostly,
ABC fits to any kind of optimization problem for exploring the feasible solution in a constraint time
limit.
Deep learning and the creation of models that mimic the neuronal activity of the human brain
both require RNNs. They differ from other kinds of artificial neural networks in that they employ
feedback loops to digest a series of input that influences the final output, making them particularly
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effective in use cases where context is essential for predicting an outcome. As a result of these feedback
loops, information can endure. This phenomenon is frequently referred to as memory.
The majority of RNN use cases are associated with language models, where predicting the next
letter in a word or the next word in a phrase depends on the information that comes before it. An
RNN trained with Shakespearean works effectively produces Shakespeare-like text in an intriguing
experiment. Writing is a sort of computational creativity performed by RNNs. The AI’s knowledge of
syntax and semantics acquired from its training set allows it to simulate human inventiveness.
From the first input to the final output, RNNs may process data. RNNs employ feedback loops,
such as backpropagation via time, during the computational process to loop information back into
the network, unlike feed-forward neural networks. RNNs can analyze sequential and temporal data
because of the connections made by this between inputs.
As shown in Fig. 1a conventional RNN includes three layers: input, recurrent hidden, and output.
N input units make up the input layer. A series of vectors during time t, such as { . . . , xt−1 , xt , xt + 1 . . . },
are the inputs to this layer, where xt = (x1 , x2 , . . . , xN ). A weight matrix WIH is used to determine the
links between the input units of a fully connected RNN and the hidden units in the hidden layer. The
hidden layer has M hidden units ht = (h1 , h2 , . . . , hM ), that are connected to each other through time
with recurrent. Small non-zero components can be used to initialize hidden units, which can boost the
network’s overall performance and stability.

Figure 1: Architecture of recurrent neural network

The hidden layer defines the state space or “memory” of the system as
ht = fH (ot ) (4)
where
ot = WIH xt + WHH ht − 1 + bh (5)

fH (·) is the hidden layer activation function, and bh is the bias vector of the hidden units. The
hidden units are connected to the output layer with weighted connections WHO . The output layer has
P units yt = (y1 , y2 . . . yP ) that are computed as
yt = fO (WHO ht + bo ) (6)
where fO (·) is the activation functions and bo is the bias vector in the output layer. Since the input-target
pairs are sequential through time, the above steps are repeated consequently over time t = (1, . . . , T).
IASC, 2023, vol.37, no.2 1489

Based on the input vector, the hidden states offer a prediction at the output layer for each time
step. The hidden state of an RNN is a set of values that, independent of the influence of any external
factors, compile all the specific knowledge required about the network’s previous states over numerous
time steps. At the output layer, this integrated information can define the network’s future behaviour
and produce precise predictions.
Multiple linear hidden layers function as a single linear hidden layer for linear networks. Since
they can define nonlinear bounds, nonlinear functions are more potent than linear ones. The reason
for learning input-target interactions in an RNN is the nonlinearity in one or more subsequent hidden
layers. A popular option is the “sigmoid,” which reduces a real value to the range [0, 1]. This activation
function is typically applied in the output layer, where a classification model is trained using a cross-
entropy loss function.
The “sigmoid” activation functions are defined as
1
(x) = (7)
1 + e−x
The issue and the type of data have a major impact on the activation function choice. “Sigmoid”
activation functions rapidly saturate the neuron and can cause the gradient to disappear.

5 Dataset Description
All experiments are conducted in the Python environment, which takes center stage. The effec-
tiveness of the suggested technique is examined in this part using three distinct datasets. Tables 1 to 3
provide a description of the dataset.

Table 1: Dataset description credit card fraud dataset

Description Credit card fraud
Number of instances 58016
Number of attributes 40
Number class 2
Number of positive samples 57879
Number of negative samples 137

Table 2: Dataset description mortgage fraud dataset

Description Mortgage fraud
Number of instances 48674
Number of attributes 11
Number class 2
Number of positive samples 48066
Number of negative samples 608
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Table 3: Dataset description insurance fraud dataset

Description Insurance fraud
Number of instances 44326
Number of attributes 39
Number class 2
Number of positive samples 43814
Number of negative samples 512

6 Metric Unit
Generally, the metrics in deep learning are meant for binary classification problems which shall be
generalized for multiclass problems. For a multiclass classification problem, the metrics are performed
as binary classifiers internally by assuming one class as positive and all other classes as negative,
commonly known as one-vs.-all classifier.
Accuracy
Accuracy is the simplest and first metric which evaluates the performance of the network. It is
calculated by number of correct predictions to the total predictions. It is represented by
TP + True Negative (TN)
Accuracy = (8)
TP + TN + FP + FN
Mean Absolute Error (MAE)
A measure of mistakes among paired observations describing the same phenomena is called mean
absolute error. The MAE is expressed as,
n
|li − mi |
MAE = i=1 (9)
n
where prediction is given as li , true value is given as mi and the total count of data point is given as n.
Mean Square Error (MSE)
The average of the squares of the mistakes, or the average squared difference between the estimated
values and the actual value, is measured by the mean squared error or mean squared deviation of an
estimator. MSE, which corresponds to the expected value of the squared error loss, is a risk function.
The MSE is expressed as,
1 n  2
MSE = li − 
li (10)
n i=1

where observed range is indicated as li , predicted range is indicated as 

li , and count of data point is
given as n.
F1-Score
F1-Score combines the precision and recall by calculating the weighted average of precision and
recall. This score uses both false positives and false negatives for its calculation. F1-Score is more
IASC, 2023, vol.37, no.2 1491

informative measure than accuracy, mainly in case of imbalanced datasets. The estimation of F1 score
is expressed as,
2 × Precison × Recall
F1score = (11)
Precision + Recall
Precision
Precision deals with the frequency of the correct predictions of true positive out of total
predictions. Recall deals with how many correct predictions are actually correct.
True Positive
Precision = (12)
Total Predicted Value
Recall
Recall is the percentage of successfully retrieved relevant documents in information retrieval.
True Positive
Recall = (13)
True Positive + False Positive

7 Results and Discussion

In this section performance of the proposed approach is investigated with three different datasets.
The performance is investigated in terms of Accuracy, f1 score, Mean Square Error (MSE) and Mean
Absolute Error (MAE). The proposed ABC-RNN is compared with the existing technique RNN. The
Performance of the proposed and existing techniques is given in Table 4.

Table 4: Comparison of performance for credit card fraud dataset

Technique Accuracy (%) MAE MSE Precision (%) Recall (%) F1_score (%)
RNN 90.26 0.357 0.399 88.07 89.11 85.58
ABC-RNN 96.03 0.205 0.360 97.04 93.40 91.98

Fig. 2 and Table 4 illustrate the comparison of accuracy, MAE, and MSE, precision, Recall and
F1_Score for the credit card fraud detection. Fig. 2 shows a thorough analysis of the ABC_RNN
model’s accuracy, mean absolute error, and mean squared error, Precision, Recall and F1_Score in
comparison to the RNN model that is currently in use on the Credit card Dataset. The resulting figures
showed that the ABC-RNN model had enhanced accuracy of 96.03 percent, a lowered MAE of 0.205,
a lower MSE of 0.360, precision of 97.04 percent, Recall of 93.04 and F1_Score of 91.98 compared to
the RNN model’s slightly decreased accuracy of 90.06 percent, increased MAE of 0.357, a increased
MSE of 0.339, precision of 88.07 percent, Recall of 89.11 and F1_Score of 85.58.
The comparison of accuracy, MAE, and MSE, precision, recall, and F1 Score for credit card
fraud detection is shown in Fig. 2 and Table 5. The accuracy, mean absolute error, mean squared error,
precision, recall, and F1 Score of the ABC RNN model in comparison to the RNN model currently
being used on the Credit card Dataset are all thoroughly analysed in Fig. 2. In comparison to the
RNN model, which had slightly lower accuracy of 91.14 percent, higher MAE of 0.468, higher MSE
of 0.379, precision of 90.59 percent, Recall of 89.11, and F1 Score of 86.81, the ABC-RNN model had
improved accuracy of 98.60 percent, a lower MAE of 0.169, a lower MSE of 0.118, and precision of
98.78 percent, Recall of 92.08 and F1_Score of 94.21.
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Accuracy (%) MAE MSE

110 0.4 0.42
90 0.3 0.4
70
0.2 0.38
50
30 0.1 0.36

10 0 0.34
RNN ABC-RNN RNN ABC-RNN RNN ABC-RNN

Accuracy (%) MAE MSE

Precision (%) Recall (%) F1_ Score

110 110 110
90 90 90
70 70 70
50
50 50
30
30 30
10
RNN ABC-RNN 10 10
RNN ABC-RNN RNN ABC-RNN

Precision Recall F1_ Score

Figure 2: Comparison of performance for credit card fraud dataset

Table 5: Comparison of performance for insurance fraud dataset

Technique Accuracy (%) MAE MSE Precision (%) Recall (%) F1_score (%)
RNN 91.14 0.468 0.379 90.59 89.11 86.81
ABC-RNN 98.60 0.169 0.188 98.78 92.08 94.21

The comparison of accuracy, MAE, and MSE, precision, recall, and F1 Score for credit card
fraud detection is shown in Fig. 3 and Table 6. The accuracy, mean absolute error, mean squared error,
precision, recall, and F1 Score of the ABC RNN model in comparison to the RNN model currently
being used on the Credit card Dataset are all thoroughly analysed in Fig. 3. In comparison to the
RNN model, which had slightly lower accuracy of 90.60 percent, higher MAE of 0.417, higher MSE
of 0.330, precision of 90.81 percent, Recall of 86.12, and F1 Score of 84.31, the ABC-RNN model
had improved accuracy of 97.92 percent Fig. 4, a lower MAE of 0.119, a lower MSE of 0.301, and
precision of 97.93 percent, Recall of 92.25 and F1_Score of 97.16.
In Tables 7–9 shows the accuracy for different dataset. From those table, accuracy in % is increased
in proposed method (ABC-RNN) when compared to the different existing methods.
IASC, 2023, vol.37, no.2 1493

Accuracy (%) MAE MSE

110 0.5 0.4

90 0.4
0.3
70 0.3
0.2
50 0.2
30 0.1 0.1

10 0 0
RNN ABC-RNN RNN ABC-RNN RNN ABC-RNN

Accuracy (%) MAE MSE

Precision (%) Recall (%) F1_score (%)

110 110 110
90 90 90
70 70 70
50 50 50
30 30 30
10 10 10
RNN ABC-RNN RNN ABC-RNN RNN ABC-RNN

Precision Recall F1_ Score

Figure 3: Comparison of performance for insurance fraud dataset

Table 6: Comparison of performance for mortgage fraud dataset

Technique Accuracy (%) MAE MSE Precision (%) Recall (%) F1_score (%)
RNN 90.60 0.417 0.330 90.81 86.12 84.31
ABC-RNN 97.92 0.199 0.301 97.93 92.25 97.16

Accuracy (%) MAE (%) MSE (%)

100 0.5 0.35
98 0.4 0.3
96
0.3 0.25
94
92 0.2 0.2
90
0.1 0.15
88
86 0 0.1
RNN ABC-RNN RNN ABC-RNN RNN ABC-RNN

Accuracy (%) MAE MSE

Figure 4: (Continued)
1494 IASC, 2023, vol.37, no.2

Precision(%) Recall (%) F1_Score (%)

110 110 110

90 90 90

70 70 70

50 50 50

30 30 30

10 10 10
RNN ABC-RNN RNN ABC-RNN RNN ABC-RNN

Precision Recall F1_ Score

Figure 4: Comparison of performance for mortgage fraud dataset

Table 7: Comparison of performance for different approaches for credit card fraud dataset
Credit card fraud dataset
References Methods Accuracy (%)
Proposed ABC-RNN 96.03
Esraa Faisal Malik et al., (2022) Adaboost + LGBM 82
Ajeet Singh & Anurag Jain (2021) CFS + RF + firefly 96
Maria Nancy et al., (2020) CNN + KNN 94

Table 8: Comparison of performance for different approaches for insurance fraud dataset
Insurance fraud dataset
References Methods Accuracy (%)
Proposed ABC-RNN 98.60
Theja et al., (2020) CF + XGBoost 98
Yao Zhi Xu et al., (2019) DT + LR 72
Bing Chu et al., (2018) RF + CNN 92

Table 9: Comparison of performance for different approaches for mortgage fraud dataset
Mortgage fraud dataset
References Methods Accuracy
Proposed ABC-RNN 97.92
Bahari Belaton et al., (2022) Adaboost + SVM 91
Nandwan. (2021) PCA + XGBoost 93
Maoguang Wang et al., (2018) XG-Boost + LR 83
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In Tables 10–12 shows the MAE and MSE value for different dataset. From those table, errors are
decreased in proposed method (ABC-RNN) when compared to the different existing methods

Table 10: Comparison of performance for different approaches for credit card fraud dataset
Credit card fraud dataset
References Methods MAE MSE
Proposed ABC + RNN 0.205 0.360
Hasoon et al., (2022) DNN + LSTM 0.237 0.413
Meran et al., (2020) LSTM + NN 0.281 0.371
HAsaniuo et al., (2016) PSO + KNN 0.224 0.780

Table 11: Comparison of performance for different approaches for insurance fraud dataset
Insurance fraud dataset
References Methods MAE MSE
Proposed ABC + RNN 0.169 0.188
Oikonomidis et al., (2022) CNN + XGBoost 0.263 0.374
Yan Li et al., (2019) LSTM + CNN 0.181 0.412
Lin et al., (2017) NN + LSTM 0.192 0.382

Table 12: Comparison of performance for different approaches for mortgage fraud dataset
Mortgage fraud dataset
References Methods MAE MSE
Proposed ABC + RNN 0.199 0.301
Agarwal et al., (2022) PSO + NN 0.335 0.365
Ajeet SVM + RF 0.412 0.363
Singh et al., (2019)
Anurag et al., (2019) KNN + PCA 0.498 0.323

In Tables 13–15 shows the performance of Precision, Recall and F1_Score for different dataset.
From those table, the proposed method (ABC-RNN) obtains best results when compares to the
existing hybrid approaches.
1496 IASC, 2023, vol.37, no.2

Table 13: Comparison of performance for different approaches for credit card fraud dataset
Credit card fraud dataset
References Methods Precision (%) Recall (%) F1_score (%)
Proposed ABC + RNN 97 93 92
Esra Faisal Malik et al., (2022) Adaboost + LGBM 96 64 77
Maria Nancy et al., (2020) CNN + KNN 95 91 97
Shamitha and SMOTE + RF 86 82 90
Ilango et al., (2019)

Table 14: Comparison of performance for different approaches for insurance fraud dataset
Insurance fraud dataset
References Methods Precision (%) Recall (%) F1_ score (%)
Proposed ABC + RNN 97 93 92
Patil et al., (2021) XGBoost + CTGAN 84 84 92
Patil et al., (2021) Regression + CTGAN 81 81 91
Shakya et al., (2018) SMOTE + LR 90 88 71

Table 15: Comparison of performance for different approaches for mortgage fraud dataset
Mortgage fraud dataset
References Methods Precision (%) Recall (%) F1_ score (%)
Proposed ABC + RNN 97 93 92
Shirodkar et al., (2022) LR + GA 59 89 51
Abdallah et al., (2021) CNN + LSTM 93 94 93
Shakya et al., (2018) XGBOOST + SMOTE 53 88 66

8 Conclusion
Online transactions are essential in today’s modern age of global technology because all that is
required to finish an application and charge money is the user’s credit card details. Therefore, it’s
essential to create the best strategy for identifying the most of frauds in online systems. Utilizing
accuracy, MAE, MSE, Precision, Recall, and F1 Score, the effectiveness of the proposed and existing
techniques is examined. The performance result shows that the suggested technique is effective and
outperforms the current methods. For three data sets, the suggested method outperforms existing
strategies, including RNN, in terms of accuracy. The achievement of the highest accuracy demonstrates
that the suggested strategy is effective in identifying cyber-attacks. The proposed method has a lower
error rate than the currently used methods. In this method we took financial fraud detection as major
issues while doing online transactions. Our proposed ABC-RNN approach achieved accuracy index
IASC, 2023, vol.37, no.2 1497

as 97% and we compare the result with existing methods. May be our proposed method detects the
already taken or available dataset which can be simulated by predefined set of conditions. In future we
can try full automated or connected neural network for dependencies prediction.

Funding Statement: The authors received no specific funding for this study.

Conflicts of Interest: The authors declare that they have no conflicts of interest to report regarding the
present study.

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