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

NYPD and Microsoft Create a Next Generation Law Enforcement Big Data Solution
NYPD and Microsoft Create a Next Generation Law Enforcement Big Data Solution
Content Analysis and the Internet of Things: Never Leave the Fridge Door Open Again?
How Consumerization of Data Leads to Quality of Life Improvements
Predictive Analytics Makes DasCoin And Other Currencies Mainstream
CRM Database: Unlocking Customer Secrets for Business Growth

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

Analyst points at colorful circular data dashboard on screen - information technology business metrics
How Fragmented Workplace Tech Undermines Reliable Business Metrics and Reporting
Cloud Computing Exclusive Infographic IT
Using Multi-Source Data and Analytics to Detect Operational Drift Across Franchise Networks -- AI-generated illustration
Using Multi-Source Data and Analytics to Detect Operational Drift Across Franchise Networks
Exclusive Infographic
Beyond The First Impression: The Long-Lasting Impact Of Sensory Marketing -- AI-generated illustration
Beyond The First Impression: The Long-Lasting Impact Of Sensory Marketing
Infographic Marketing
The Infrastructure Gap Slowing Data Center Growth -- AI-generated illustration
The Infrastructure Gap Slowing Data Center Growth
Big Data Cloud Computing Exclusive Infographic IT

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Customer Experience Innovation: Aligning Business with Customer

5 Min Read
SKF: Inverse Construction and Volatility
Predictive Analytics

SKF: Inverse Construction and Volatility

8 Min Read
Human evolution is speeding up
CRM

Human evolution is speeding up

5 Min Read
Book FAQ: Is the Book “Predictive Analytics” Only for Experts? No!
Book ReviewPredictive Analytics

Book FAQ: Is the Book “Predictive Analytics” Only for Experts? No!

3 Min Read

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

Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
How To Get An Award Winning Giveaway Bot
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

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?