We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
    cybersecurity efforts
    How Behavioral Analytics and AI Are Redefining Cybersecurity for Boca Raton Businesses
    14 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Fraud Prediction – Decision Trees & Support Vector Machines
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > CRM > Fraud Prediction – Decision Trees & Support Vector Machines
CRMData MiningPredictive Analytics

Fraud Prediction – Decision Trees & Support Vector Machines

romakanta
romakanta
5 Min Read
Fraud Prediction - Decision Trees & Support Vector Machines
Illustration generated with FLUX.2 [klein 4B] via Cloudflare Workers AI.
SHARE

My first thought when I was asked to learn and use Oracle Data Mining (ODM) was, “Oh no! Yet another Data Mining Software!!!”

It’s been about 2 weeks now since I have been using ODM, particularly focusing on two classification techniques – Decision Trees & Support Vector Machines. As I don’t want to get into the details of the interface/usability of ODM (unless Oracle pays me!!), I will limit this post on a comparison of these two classification techniques at a very basic level, using ODM.

A very brief introduction of DT & SVM.

More Read

Game Changers
Game Changers
Data Science: What Companies Need to Know
Images to Data :OCR Softwares
Hadoop in Advertising & Media: Is Data Analytics Making Old Media New?
“The term BI has been stretched and widened to encapsulate a lot of different techniques, tools and…”

DT – A flow chart or diagram representing a classification system or a predictive model. The tree is structured as a sequence of simple questions. The answers to these questions trace a path down the tree. The end product is a collection of hierarchical rules that segment the data into groups, where a decision (classification or prediction) is made for each group.

-The hierarchy is called a tree, and each segment is called a node.
-The original segment contains the entire data set, referred to as the root node of the tree.
-A node with all of its successors forms a branch of the node that created it.
-The final nodes (terminal nodes) are called leaves. For each leaf, a decision is made and applied to all observations in the leaf.

SVM – A Support Vector Machine (SVM) performs classification by constructing an N-dimensional hyperplane that optimally separates the data into two categories.

In SVM jargon, a predictor variable is called an attribute, and a transformed attribute that is used to define the hyperplane is called a feature. A set of features that describes one case/record is called a vector. The goal of SVM modeling is to find the optimal hyperplane that separates clusters of vector in such a way that cases with one category of the target variable are on one side of the plane and cases with the other category are on the other size of the plane. The vectors near the hyperplane are the support vectors.

SVM is a kernel-based algorithm. A kernel is a function that transforms the input data to a high-dimensional space where the problem is solved. Kernel functions can be linear or nonlinear.

The linear kernel function reduces to a linear equation on the original attributes in the training data. The Gaussian kernel transforms each case in the training data to a point in an n-dimensional space, where n is the number of cases. The algorithm attempts to separate the points into subsets with homogeneous target values. The Gaussian kernel uses nonlinear separators, but within the kernel space it constructs a linear equation.

I worked on this dataset which has fraudulent fuel card transactions. Two techniques I previously tried are Logistic Regression (using SAS/STAT) & Decision Trees (using SPSS Answer Tree). Neither of them was found to be suitable for this dataset/problem.

The dataset has about 300,000 records/transactions and about 0.06% of these have been flagged as fraudulent. The target variable is the fraud indicator with 0s as non-frauds, and 1s as frauds.

The Data Preparation consisted of missing value treatments, normalization, etc. Predictor variables that are strongly associated with the fraud indicator – both from the business & statistics perspective – were selected.

The dataset was divided into a Build Data (60% of the records) and Test Data (40% of the records).

Algorithm Settings for DT,

Accuracy/Confusion Matrix for DT,

Algorithm Settings for SVM,

Accuracy/Confusion Matrix for SVM,


http://datalligence.blogspot.com/

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

The New Zlibrary Official Domain Makes The Website Address Different -- AI-generated illustration
How Search Engine Indexing Lags Behind Large-Scale Website Domain Migrations
News
How Great Content Moves Through A Marketing Ecosystem -- AI-generated illustration
How Great Content Moves Through A Marketing Ecosystem
Exclusive Infographic Marketing
What Your Brand Misses That Data Reveals -- AI-generated illustration
What Your Brand Misses That Data Reveals
Big Data Exclusive Infographic
5 Common Mistakes Businesses Make During the Risk Assessment Process -- AI-generated illustration
5 Common Mistakes Businesses Make During the Risk Assessment Process
Business Intelligence Exclusive Risk Management

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

March Madness to Achieve Optimized Performance Management
Business IntelligenceCRMPredictive Analytics

March Madness to Achieve Optimized Performance Management

1 Min Read
The Dark Matter of Data
AnalyticsData MiningData QualityData VisualizationRisk Management

The Dark Matter of Data

5 Min Read
Top Five Articles in Data Mining
Data Mining

Top Five Articles in Data Mining

5 Min Read
Top 10 analytic mistakes
Business IntelligenceCRMData MiningData VisualizationInside CompaniesMarketing

Top 10 analytic mistakes

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data
ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?