Detecting Fraudulent Motor Insurance Claims Using Support Vector Machines with Adaptive Synthetic Sampling Method

Charles Muranda, Ahmed Ali, Thokozani Shongwe

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

6 Citations (Scopus)

Abstract

Classification algorithms suffer from imbalanced training sets. In the area of detecting fraudulent claims in the insurance industry, fraud cases are rare as compared to the genuine ones. Therefore, algorithms of detecting fraud have fewer training samples of positive cases, leading to lower performance metrics compared to when there are equal cases. In this paper, we propose a machine learning method of detecting fraudulent claims. The proposed method uses the adaptive synthetic sampling method (ADASYN) to remove imbalances in the dataset. We then used Support Vector Machines (SVM) to classify the claim cases. The outcome of the algorithm is compared to the imbalanced datasets and other existing methods.

Original languageEnglish
Title of host publication2020 61st International Scientific Conference on Information Technology and Management Science of Riga Technical University, ITMS 2020 - Proceedings
EditorsJanis Grabis, Andrejs Romanovs, Galina Kulesova
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728191058
DOIs
Publication statusPublished - 15 Oct 2020
Event61st International Scientific Conference on Information Technology and Management Science of Riga Technical University, ITMS 2020 - Riga, Latvia
Duration: 15 Oct 202016 Oct 2020

Publication series

Name2020 61st International Scientific Conference on Information Technology and Management Science of Riga Technical University, ITMS 2020 - Proceedings

Conference

Conference61st International Scientific Conference on Information Technology and Management Science of Riga Technical University, ITMS 2020
Country/TerritoryLatvia
CityRiga
Period15/10/2016/10/20

Keywords

  • Support Vector Machines
  • class-imbalances
  • fraudulent-claims

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Hardware and Architecture
  • Information Systems
  • Information Systems and Management
  • Management Science and Operations Research

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