An Efficient Machine Learning-based Framework for Detection and Prevention of Frauds in Telecom Networks

TL;DR

This paper evaluates AI models, especially Random Forest, for detecting telecom fraud using CDR data, achieving near-perfect accuracy and demonstrating effective fraud prevention.

Contribution

It introduces a framework that applies machine learning models, notably Random Forest, for efficient and accurate telecom fraud detection with comprehensive performance evaluation.

Findings

Random Forest achieved 99.9% accuracy and precision.

The framework effectively detects fraud with minimal misclassification.

RF outperformed other models like XGBoost and BERT in this context.

Abstract

Telecommunication fraud is an acute problem that leads to substantial material losses and compromises the reliability of telecom systems worldwide. Only effective and efficient detection mechanisms can help to deal with these threats, though there are certain shifts in the approaches to fraud detection. This paper evaluates the performance of AI-driven models for fraud detection in telecommunication networks using Call Detail Record (CDR) datasets. This study focuses on fraud detection in telecom networks using the Telecom CDR dataset, which contains 101,174 customer records with 17 attributes, including 8,830 fraud cases. In feature preprocessing, missing values were dealt with, followed by data scaling using Min-Max scaling and data balancing using the SMOTE technique. The dataset was trained for predictive analysis using Random Forest (RF) and XGBoost models. F1-score, ROC AUC, recall, accuracy, time, and precision were used as indicators with which to compare performance of the two models. RF recorded a high level of accuracy at 99.9% while XGBoost at 99.7%. Findings show that the suggested framework successfully detects fraud with few misclassifications. Several machine learning models were evaluated and contrasted, such as RF, XGBoost, DBSCAN, RoBERTa, and K-means. Among all the models, RF was seen to give the highest performance with an accuracy of 99.9% and precision of 99.9%, recall of 99.9% and F1-score of 99.9%, XGBoost, GNN and BERT. The findings emphasize RF as the most effective model for detecting fraudulent activities in telecom networks, ensuring robust and reliable prevention of fraud.