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Credit Card Fraud Detection Dataset NOTE: The dataset 'creditcard.csv' was too large to be committed, but it can be found on Kaggle THIS IS A COST-SENSITIVE CLASSIFICATION PROBLEM The dataset contains transactions made by credit cards, they are labeled as fraudulent or genuine. This is important for companies that have transaction systems to build a model for detecting fraudulent activities. Classification methods are used to predict the class of different examples given their features. Standard methods aim at maximizing the accu racy of the predictions, in which an example is correctly classified if the predicted class is the same the as true class. This traditional approach assumes that all correctly classified and misclassified examples carry the same cost. This, however, is not the case in many real-world appli cations. Methods that use different misclassification costs are known as cost-sensitive classifiers. Typical cost-sensitive approaches assume a constant cost for each type of error, in the sense that, the cost depends on the class and is the same among examples [Elkan, 2001; Kim et al., 2012]. Nevertheless, this class-dependent approach is not realistic in many real world applications. For example in credit card fraud detection, failing to detect a fraudulent transaction may have an economical impact from a few to thousands of Euros, depending on the particular transaction and card holder [Sahin et al., 2013].