Prediction of bank transaction fraud using TabNet an adaptive deep learning architecture
This study addresses the critical need for high accuracy, interpretability, and scalability in online banking fraud detection by leveraging real-world transaction data from India. Through exploratory data analysis and SMOTE-based oversampling to mitigate class imbalance, the authors systematically evaluate five deep learning models: DNN, GRU, LSTM, 1D-CNN, and TabNet. Notably, they harness TabNet’s intrinsic sparse feature selection mechanism to simultaneously enhance model interpretability and generalization. Experimental results demonstrate that TabNet achieves a 97.39% accuracy and a 0.9739 ROC-AUC under three-fold cross-validation, significantly outperforming baseline models. The approach effectively reduces both false positives and false negatives, supports real-time deployment, and satisfies stringent financial regulatory requirements for model transparency.