A Fraud-Detection Fuzzy Logic Based System for the Sudanese Financial Sector

Financial fraud considered as a global issue that faces the financial sector and economy; as a result, many financial institutions loose hundreds of millions of dollars annually due to fraud. In Sudan, there are difficulties of getting real data from banks and the unavailability of systems which explain the reasons of suspicious transaction. Hence, there is a need for transparent techniques which can automatically detect fraud with high accuracy and identify its causes and common patterns. Some of the Artificial Intelligence (AI) techniques provide good predictive models, nevertheless they are considered as black-box models which are not easy to understand and analyze. In this paper, we developed a novel intelligent type-2 Fuzzy Logic Systems (FLSs) which can detect fraud in debit cards using real world dataset extracted from financial institutions in Sudan. FLSs provide white-box transparent models which employ linguistic labels and IF-Then rules which could be easily analyzed, interpreted and augmented by the fraud experts. The proposed type-2 FLS system learnt its fuzzy sets parameters from data using Fuzzy C-means (FCM) clustering as well as learning the FLS rules from data. The proposed system has the potential to result in highly accurate automatic fraud-detection for the Sudanese financial institutions and banking sectors

Comparison of different strategies of utilizing fuzzy clustering in structure identification

Fuzzy systems approximate highly nonlinear systems by means of fuzzy "if-then" rules. In the literature, various algorithms are proposed for mining. These algorithms commonly utilize fuzzy clustering in structure identification. Basically, there are three different approaches in which one can utilize fuzzy clustering; the �first one is based on input space clustering, the second one considers clustering realized in the output space, while the third one is concerned with clustering realized in the combined input-output space. In this study, we analyze these three approaches. We discuss each of the algorithms in great detail and o¤er a thorough comparative analysis. Finally, we compare the performances of these algorithms in a medical diagnosis classi�cation problem, namely Aachen Aphasia Test. The experiment and the results provide a valuable insight about the merits and the shortcomings of these three clustering approaches

Adaptive inferential sensors based on evolving fuzzy models

A new technique to the design and use of inferential sensors in the process industry is proposed in this paper, which is based on the recently introduced concept of evolving fuzzy models (EFMs). They address the challenge that the modern process industry faces today, namely, to develop such adaptive and self-calibrating online inferential sensors that reduce the maintenance costs while keeping the high precision and interpretability/transparency. The proposed new methodology makes possible inferential sensors to recalibrate automatically, which reduces significantly the life-cycle efforts for their maintenance. This is achieved by the adaptive and flexible open-structure EFM used. The novelty of this paper lies in the following: (1) the overall concept of inferential sensors with evolving and self-developing structure from the data streams; (2) the new methodology for online automatic selection of input variables that are most relevant for the prediction; (3) the technique to detect automatically a shift in the data pattern using the age of the clusters (and fuzzy rules); (4) the online standardization technique used by the learning procedure of the evolving model; and (5) the application of this innovative approach to several real-life industrial processes from the chemical industry (evolving inferential sensors, namely, eSensors, were used for predicting the chemical properties of different products in The Dow Chemical Company, Freeport, TX). It should be noted, however, that the methodology and conclusions of this paper are valid for the broader area of chemical and process industries in general. The results demonstrate that well-interpretable and with-simple-structure inferential sensors can automatically be designed from the data stream in real time, which predict various process variables of interest. The proposed approach can be used as a basis for the development of a new generation of adaptive and evolving inferential sensors that can a- ddress the challenges of the modern advanced process industry

An adaptive neuro-fuzzy propagation model for LoRaWAN

This article proposes an adaptive-network-based fuzzy inference system (ANFIS) model for accurate estimation of signal propagation using LoRaWAN. By using ANFIS, the basic knowledge of propagation is embedded into the proposed model. This reduces the training complexity of artificial neural network (ANN)-based models. Therefore, the size of the training dataset is reduced by 70% compared to an ANN model. The proposed model consists of an efficient clustering method to identify the optimum number of the fuzzy nodes to avoid overfitting, and a hybrid training algorithm to train and optimize the ANFIS parameters. Finally, the proposed model is benchmarked with extensive practical data, where superior accuracy is achieved compared to deterministic models, and better generalization is attained compared to ANN models. The proposed model outperforms the nondeterministic models in terms of accuracy, has the flexibility to account for new modeling parameters, is easier to use as it does not require a model for propagation environment, is resistant to data collection inaccuracies and uncertain environmental information, has excellent generalization capability, and features a knowledge-based implementation that alleviates the training process. This work will facilitate network planning and propagation prediction in complex scenarios

The application of ANFIS prediction models for thermal error compensation on CNC machine tools

Thermal errors can have significant effects on CNC machine tool accuracy. The errors come from thermal deformations of the machine elements caused by heat sources within the machine structure or from ambient temperature change. The effect of temperature can be reduced by error avoidance or numerical compensation. The performance of a thermal error compensation system essentially depends upon the accuracy and robustness of the thermal error model and its input measurements. This paper first reviews different methods of designing thermal error models, before concentrating on employing an adaptive neuro fuzzy inference system (ANFIS) to design two thermal prediction models: ANFIS by dividing the data space into rectangular sub-spaces (ANFIS-Grid model) and ANFIS by using the fuzzy c-means clustering method (ANFIS-FCM model). Grey system theory is used to obtain the influence ranking of all possible temperature sensors on the thermal response of the machine structure. All the influence weightings of the thermal sensors are clustered into groups using the fuzzy c-means (FCM) clustering method, the groups then being further reduced by correlation analysis. A study of a small CNC milling machine is used to provide training data for the proposed models and then to provide independent testing data sets. The results of the study show that the ANFIS-FCM model is superior in terms of the accuracy of its predictive ability with the benefit of fewer rules. The residual value of the proposed model is smaller than ±4 μm. This combined methodology can provide improved accuracy and robustness of a thermal error compensation system

New methods for the estimation of Takagi-Sugeno model based extended Kalman filter and its applications to optimal control for nonlinear systems

This paper describes new approaches to improve the local and global approximation (matching) and modeling capability of Takagi–Sugeno (T-S) fuzzy model. The main aim is obtaining high function approximation accuracy and fast convergence. The main problem encountered is that T-S identification method cannot be applied when the membership functions are overlapped by pairs. This restricts the application of the T-S method because this type of membership function has been widely used during the last 2 decades in the stability, controller design of fuzzy systems and is popular in industrial control applications. The approach developed here can be considered as a generalized version of T-S identification method with optimized performance in approximating nonlinear functions. We propose a noniterative method through weighting of parameters approach and an iterative algorithm by applying the extended Kalman filter, based on the same idea of parameters’ weighting. We show that the Kalman filter is an effective tool in the identification of T-S fuzzy model. A fuzzy controller based linear quadratic regulator is proposed in order to show the effectiveness of the estimation method developed here in control applications. An illustrative example of an inverted pendulum is chosen to evaluate the robustness and remarkable performance of the proposed method locally and globally in comparison with the original T-S model. Simulation results indicate the potential, simplicity, and generality of the algorithm. An illustrative example is chosen to evaluate the robustness. In this paper, we prove that these algorithms converge very fast, thereby making them very practical to use

Expert system training and control based on the fuzzy relation matrix

Fuzzy knowledge, that for which the terms of reference are not crisp but overlapped, seems to characterize human expertise. This can be shown from the fact that an experienced human operator can control some complex plants better than a computer can. Proposed here is fuzzy theory to build a fuzzy expert relation matrix (FERM) from given rules or/and examples, either in linguistic terms or in numerical values to mimic human processes of perception and decision making. The knowledge base is codified in terms of many implicit fuzzy rules. Fuzzy knowledge thus codified may also be compared with explicit rules specified by a human expert. It can also provide a basis for modeling the human operator and allow comparison of what a human operator says to what he does in practice. Two experiments were performed. In the first, control of liquid in a tank, demonstrates how the FERM knowledge base is elicited and trained. The other shows how to use a FERM, build up from linguistic rules, and to control an inverted pendulum without a dynamic model