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Integrating Machine Learning Algorithms With Quantum Annealing Solvers For Online Fraud Detection, Haibo Wang, Wendy Wang, Yi Liu, Bahram Alidaee

Faculty and Student Publications

Machine learning has been increasingly applied in identification of fraudulent transactions. However, most application systems detect duplicitous activities after they have already occurred, not at or near real time. Since spurious transactions are far fewer than the normal ones, the highly imbalanced data makes fraud detection very challenging and calls for ways to address it beyond the traditional machine learning approach. This study has proposed a detection framework, and implemented it using quantum machine learning (QML) approach by applying Support Vector Machine (SVM) enhanced with quantum annealing solvers. To evaluate its detection performance, we have further implemented twelve machine learning …