[2603.13566] EmDT: Embedding Diffusion Transformer for Tabular Data Generation in Fraud Detection

Statistics > Machine Learning arXiv:2603.13566 (stat) [Submitted on 13 Mar 2026 (v1), last revised 29 Apr 2026 (this version, v2)] Title:EmDT: Embedding Diffusion Transformer for Tabular Data Generation in Fraud Detection Authors:En-Ya Kuo, Sebastien Motsch View a PDF of the paper titled EmDT: Embedding Diffusion Transformer for Tabular Data Generation in Fraud Detection, by En-Ya Kuo and Sebastien Motsch View PDF HTML (experimental) Abstract:Imbalanced datasets pose a difficulty in fraud detection, as classifiers are often biased toward the majority class and perform poorly on rare fraudulent transactions. Synthetic data generation is therefore commonly used to mitigate this problem. In this work, we propose the Clustered Embedding Diffusion-Transformer (EmDT), a diffusion model designed to generate fraudulent samples. Our key innovation is to leverage UMAP clustering to identify distinct fraudulent patterns, and train a Transformer denoising network with sinusoidal positional embeddings to capture feature relationships throughout the diffusion process. Once the synthetic data has been generated, we employ a standard decision-tree-based classifier (e.g., XGBoost) for classification, as this type of model remains better suited to tabular datasets. Experiments on a credit card fraud detection dataset demonstrate that EmDT significantly improves downstream classification performance compared to existing oversampling and generative methods, while maintaining comparable privac...