Improved competitive learning neural networks for network intrusion and fraud detection

In this research, we propose two new clustering algorithms, the improved competitive learning network (ICLN) and the supervised improved competitive learning network (SICLN), for fraud detection and network intrusion detection. The ICLN is an unsupervised clustering algorithm, which applies new rules to the standard competitive learning neural network (SCLN). The network neurons in the ICLN are trained to represent the center of the data by a new reward-punishment update rule. This new update rule overcomes the instability of the SCLN. The SICLN is a supervised version of the ICLN. In the SICLN, the new supervised update rule uses the data labels to guide the training process to achieve a better clustering result. The SICLN can be applied to both labeled and unlabeled data and is highly tolerant to missing or delay labels. Furthermore, the SICLN is capable to reconstruct itself, thus is completely independent from the initial number of clusters.To assess the proposed algorithms, we have performed experimental comparisons on both research data and real-world data in fraud detection and network intrusion detection. The results demonstrate that both the ICLN and the SICLN achieve high performance, and the SICLN outperforms traditional unsupervised clustering algorithms.