FDFRL: Credit Card Fraud Detection Based on Federated Reinforcement Learning

  • Nana Zhang
  • , Qin Li
  • , Kun Zhu*
  • , Dandan Zhu
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

To tackle extreme class imbalance, non-independent and identically (non-IID) distributed transactions and dynamic fraud patterns in credit card fraud detection (CCFD), we propose FDFRL, credit card Fraud Detection based on Federated Reinforcement Learning, with three core modules: Kernel-guided adversarial representation learning for high-fidelity synthetic sample generation and robust feature embeddings via hierarchical adversarial refinement. PPO-based federated reinforcement learning employing gradient smoothing and dynamic weighting to harmonize updates from heterogeneous clients and ensure steady convergence. Label-driven federated fusion module that seamlessly integrates local representations into a unified global classifier. Extensive experiments on real-world fraud datasets show that FDFRL markedly outperforms eight state-of-the-art baselines.

Original languageEnglish
Title of host publicationArtificial Neural Networks and Machine Learning – ICANN 2025 - 34th International Conference on Artificial Neural Networks, 2025, Proceedings
EditorsWalter Senn, Marcello Sanguineti, Ausra Saudargiene, Igor V. Tetko, Alessandro E. P. Villa, Viktor Jirsa, Yoshua Bengio
PublisherSpringer Science and Business Media Deutschland GmbH
Pages326-338
Number of pages13
ISBN (Print)9783032045546
DOIs
StatePublished - 2026
Event34th International Conference on Artificial Neural Networks, ICANN 2025 - Kaunas, Lithuania
Duration: 9 Sep 202512 Sep 2025

Publication series

NameLecture Notes in Computer Science
Volume16071 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference34th International Conference on Artificial Neural Networks, ICANN 2025
Country/TerritoryLithuania
CityKaunas
Period9/09/2512/09/25

Keywords

  • Dynamic Fraud Patterns
  • Extreme Class Imbalance
  • Federated Reinforcement Learning
  • Proximal Policy Optimization
  • Transaction Fraud Detection

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