Fuzzy C-Means for Fraud Detection in Large Transaction Data Sets
Christer P. O. Carlsson, Markku Heikkila, Xiaolu Wang · 2018
Large, multinational corporations typically have to process hundreds and thousands of vendor invoices every day coming from hundreds or thousands of vendors in different currencies from many countries. This has forced the adoption of simple and fast rules of thumb to accept and pay invoices below a chosen value cutoff without further scrutiny. This has invited fraud, which is hard to detect and react to, as the transaction data sets are very large. Fuzzy C-means has turned out to be effective to identify and sort out transactions, which are similar to typical fraud cases.