Concept drift and machine learning model for detecting fraudulent transactions in streaming environment

In a streaming environment, data is continuously generated and processed in an ongoing manner, and it is necessary to detect fraudulent transactions quickly to prevent significant financial losses. Hence, this paper proposes a machine learning-based approach for detecting fraudulent transactions in a streaming environment, with a focus on addressing concept drift. The approach utilizes the extreme gradient boosting (XGBoost) algorithm. Additionally, the approach employs four algorithms for detecting continuous stream drift. To evaluate the effectiveness of the approach, two datasets are used: a credit card dataset and a Twitter dataset containing financial fraud-related social media data. The approach is evaluated using cross-validation and the results demonstrate that it outperforms traditional machine learning models in terms of accuracy, precision, and recall, and is more robust to concept drift. The proposed approach can be utilized as a real-time fraud detection system in various industries, including finance, insurance, and e-commerce

OEBench: Investigating Open Environment Challenges in Real-World Relational Data Streams

How to get insights from relational data streams in a timely manner is a hot research topic. This type of data stream can present unique challenges, such as distribution drifts, outliers, emerging classes, and changing features, which have recently been described as open environment challenges for machine learning. While existing studies have been done on incremental learning for data streams, their evaluations are mostly conducted with manually partitioned datasets. Thus, a natural question is how those open environment challenges look like in real-world relational data streams and how existing incremental learning algorithms perform on real datasets. To fill this gap, we develop an Open Environment Benchmark named OEBench to evaluate open environment challenges in relational data streams. Specifically, we investigate 55 real-world relational data streams and establish that open environment scenarios are indeed widespread in real-world datasets, which presents significant challenges for stream learning algorithms. Through benchmarks with existing incremental learning algorithms, we find that increased data quantity may not consistently enhance the model accuracy when applied in open environment scenarios, where machine learning models can be significantly compromised by missing values, distribution shifts, or anomalies in real-world data streams. The current techniques are insufficient in effectively mitigating these challenges posed by open environments. More researches are needed to address real-world open environment challenges. All datasets and code are open-sourced in https://github.com/sjtudyq/OEBench