Abstract
Fraud detection is used in various industries, including banking institutes, finance, insurance, government agencies, etc. Recent increases in the number of fraud attempts make fraud detection crucial for safeguarding financial information that is confidential or personal. Many types of fraud problems exist, including card-not-present fraud, fake Marchant, counterfeit checks, stolen credit cards, and others. An ensemble feature selection technique based on Recursive feature elimination (RFE), Information gain (IG), and Chi-Squared (X2) in concurrence with the Random Forest algorithm, was proposed to give research findings and results on fraud detection and prevention. The objective was to choose the essential features for training the model. The Receiver Operating Characteristic (ROC) Score, Accuracy, F1 Score, and Precision are used to evaluate the model's performance. The findings show that the model can differentiate between fraudulent transactions and those that are not, with an ROC Score of 95.83% and an Accuracy of 99.6%. The F1 Score of 99.6%% and precision of 100% further sustain the model's ability to detect fraudulent transactions with the least false positives correctly. The ensemble feature selection technique reduced training time and did not compromise the model's performance, making it a valuable tool for businesses in preventing fraudulent transactions.