A Systematic Review of Machine Learning in Credit Card Fraud Detection Under Original Class Imbalance
Nazerke Baisholan, J. Eric Dietz, Sergiy Gnatyuk, Mussa Turdalyuly, Eric T. Matson, Карлыгаш Байшоланова
Abstract
Credit card fraud remains a significant concern for financial institutions due to its low prevalence, evolving tactics, and the operational demand for timely, accurate detection. Machine learning (ML) has emerged as a core approach, capable of processing large-scale transactional data and adapting to new fraud patterns. However, much of the literature modifies the natural class distribution through resampling, potentially inflating reported performance and limiting real-world applicability. This systematic literature review examines only studies that preserve the original class imbalance during both training and evaluation. Following PRISMA 2020 guidelines, strict inclusion and exclusion criteria were applied to ensure methodological rigor and relevance. Four research questions guided the analysis, focusing on dataset usage, ML algorithm adoption, evaluation metric selection, and the integration of explainable artificial intelligence (XAI). The synthesis reveals dominant reliance on a small set of benchmark datasets, a preference for tree-based ensemble methods, limited use of AUC-PR despite its suitability for skewed data, and rare implementation of operational explainability, most notably through SHAP. The findings highlight the need for semantics-preserving benchmarks, cost-aware evaluation frameworks, and analyst-oriented interpretability tools, offering a research agenda to improve reproducibility and enable effective, transparent fraud detection under real-world imbalance conditions.