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.

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FDFRL: Credit Card Fraud Detection Based on Federated Reinforcement Learning

  • Nana Zhang,
  • Qin Li,
  • Kun Zhu,
  • Dandan Zhu

摘要

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.