Conference Papers
Permanent URI for this collectionhttps://idr.nitk.ac.in/handle/123456789/28506
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Item Money Laundering Detection in Imbalanced E-wallet Transactions with Threshold Optimization(Institute of Electrical and Electronics Engineers Inc., 2024) Doddamani, S.S.; Girish, K.K.; Bhowmik, B.The swift embrace of technology within the financial industry has driven the extensive utilization of electronic payment systems, providing smooth money transfers and substituting outdated paper-based procedures. Consequently, mobile payment systems centered on electronic wallets (e-wallets) have signifi-cantly transformed contemporary finance, introducing improved security measures and transaction functionalities. However, the prevalence of unlawful activities, including money laundering and associated fraud via e-wallets, presents a substantial threat to the integrity of the financial sector. This research paper delves into the pivotal role of machine learning models in identifying money laundering activities within e-wallet transactions. The study focuses on addressing the imbalance inherent in the PaySim dataset through the oversampling technique. Employing three distinct models - Logistic Regression (LR), Gradient Boosting, and XGBoost - the research systematically evaluates their effectiveness. Notably, XGBoost emerged as the standout performer, showcasing exceptional accuracy at 99.88%, precision at 0.9984, and sensitivity at 0.999. Furthermore, a threshold moving technique is employed to enhance the model's efficiency, optimizing its performance in detecting potential instances of money laundering within e-wallet transactions. © 2024 IEEE.