Interpretable machine learning for fraud detection – Complete Phd and Masters Thesis

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Introduction

Interpretable machine learning has become increasingly important in the field of fraud detection as organizations seek to understand the decisions made by automated systems and comply with regulations such as GDPR. The ability to explain why a certain prediction was made is crucial in building trust and facilitating decision-making processes. This thesis aims to explore the use of interpretable machine learning models in fraud detection and to develop a framework for building transparent and understandable fraud detection systems.

Chapter 1: Introduction
1.1 Introduction
1.2 Background of study
1.3 Problem Statement
1.4 Objective of study
1.5 Limitation of study
1.6 Scope of study
1.7 Significance of study
1.8 Structure of the Thesis
1.9 Definition of terms

Chapter 2: Literature Review
2.1 Introduction to fraud detection
2.2 Machine learning in fraud detection
2.3 Interpretable machine learning
2.4 Explainable AI
2.5 Techniques for model interpretability
2.6 Challenges in interpretable fraud detection
2.7 Regulatory requirements for transparency
2.8 Applications of interpretable models in fraud detection
2.9 Case studies in interpretable fraud detection
2.10 Summary of literature review

Chapter 3: Research Methodology
3.1 Research design
3.2 Data collection
3.3 Data preprocessing
3.4 Model selection
3.5 Model training
3.6 Model interpretation
3.7 Evaluation metrics
3.8 Ethical considerations

Chapter 4: Discussion of Findings
4.1 Performance of interpretable models
4.2 Comparison with traditional fraud detection methods
4.3 Interpretability of model decisions
4.4 Feature importance analysis
4.5 Case studies
4.6 Recommendations for implementation
4.7 Future research directions

Chapter 5: Conclusion and Summary
5.1 Summary of findings
5.2 Contributions of the study
5.3 Implications for practice
5.4 Limitations of the study
5.5 Recommendations for future research

Thesis Overview

Interpretable machine learning for fraud detection is a rapidly evolving field that combines the power of machine learning techniques with the transparency of interpretable models. This thesis aims to address the need for transparent and understandable fraud detection systems by exploring the use of interpretable machine learning models. The research methodology includes data collection, preprocessing, model selection, training, and interpretation, with a focus on ethical considerations and regulatory requirements for transparency.

The literature review provides an overview of fraud detection, machine learning in fraud detection, interpretable machine learning, explainable AI, techniques for model interpretability, challenges in interpretable fraud detection, and applications of interpretable models in fraud detection. Case studies and real-world examples are included to demonstrate the practical implementation of interpretable fraud detection systems.

The discussion of findings examines the performance of interpretable models, compares them with traditional fraud detection methods, analyzes the interpretability of model decisions, and presents feature importance analysis. Recommendations for implementation and future research directions are also provided.

In conclusion, this thesis contributes to the field of fraud detection by developing a framework for building transparent and understandable fraud detection systems using interpretable machine learning models. The implications for practice and future research directions aim to advance the field and improve the effectiveness of fraud detection systems.

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