Improving Credit Card Transaction Fraud Detection Using CVQBoosting
Bethel Hui Ting LOKE, Nirvik Sahoo, Bingyan Guan +3 more
This paper introduces a novel hybrid quantum-classical approach to credit card fraud detection using CVQBoost, a hybrid quantum-classical boosting algorithm executed on the photonic Dirac-3 processor from Quantum Computing Inc. (QCi). By integrating a diverse set of weak classifiers, which includes K-nearest neighbours (KNN), linear discriminant analysis, logistic regression, and XGBoost, within a hybrid quantum-classical ensemble, the proposed method demonstrates significant improvements over the latest published classical benchmarks. Experiments on a Kaggle credit card fraud dataset show that the quantum-enhanced model achieves a mean AUC-PR score of over 0.8, corresponding to an approximately 9% relative improvement over the best published classical baseline. This indicates an improved precision–recall trade-off which can reduce false positives at a fixed recall in operational settings. The study also highlights the trade-off between training runtime and detection performance, with KNN-based ensembles offering superior accuracy at higher computational cost. Results indicate that quantum machine learning pipelines leveraging photonic processors can deliver tangible advantages in rare-event detection tasks, suggesting a promising direction for operational fraud analytics in finance.
International Conference on Agents and Artificial Intelligence (ICAART)•Jan 1, 2026•0 citations