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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM66638

FraudLens: A Hybrid Machine Learning Framework for Fake Discount Detection in E-Commerce Platforms

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM66638

Volume:

10 |

8 |

Aug 2026

Pages:

1-5

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM66638

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

Sreya P

Sreya P

Artificial Intelligence and Data Science

Avinashilingam Institute for Home Science and Higher Education for Women

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Amrithavarshini S

Amrithavarshini S

Artificial Intelligence and Data Science

Avinashilingam Institute for Home Science and Higher Education for Women

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Anitta Joju N

Anitta Joju N

Artificial Intelligence and Data Science

Avinashilingam Institute for Home Science and Higher Education for Women

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Anushree A

Anushree A

Artificial Intelligence and Data Science

Avinashilingam Institute for Home Science and Higher Education for Women

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Mentors

AM

Anitha M

Artificial Intelligence and Data Science

Avinashilingam Institute for Home Science and Higher Education for Women

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Abstract

E-commerce platforms increasingly rely on discount-based promotions to influence consumer purchasing decisions, particularly during major sale events. This reliance has given rise to a widespread and largely undetected form of pricing fraud, in which sellers artificially inflate the Maximum Retail Price (MRP) prior to a sale and subsequently apply a discount, creating the illusion of substantial savings that do not reflect any genuine price reduction. Existing price-tracking tools such as Keepa and CamelCamelCamel provide descriptive historical price data but lack the diagnostic capability to determine whether a discount is genuine. This paper presents FraudLens, a hybrid, data-driven fraud detection framework that combines an unsupervised anomaly detection layer (Isolation Forest) with supervised classification models (Random Forest and XGBoost) to identify manipulated discounts across Amazon and Flipkart product listings. The system incorporates domain-driven feature engineering — including MRP inflation ratio, discount permanence score, pre-sale price spike detection, and seller trust score — together with SHAP-based explainability to translate model predictions into human-readable justifications. The proposed system was trained and validated on a combined dataset of 73,114 records spanning 3,000 unique products, and the XGBoost classifier achieved a weighted F1-score of 96.9%, correctly classifying products as Genuine, Suspicious, or Fake. An interactive Streamlit dashboard was also developed to provide real-time, per-product fraud verdicts supported by visual evidence, enabling consumers to make more informed purchasing decisions.

KEYWORDS

Fake Discount Detection E-Commerce Fraud Anomaly Detection Isolation Forest XGBoost Explainable AI (SHAP)

Cite This Article

Sreya P, Amrithavarshini S, Anitta Joju N, Anushree A, Anitha M, "FraudLens: A Hybrid Machine Learning Framework for Fake Discount Detection in E-Commerce Platforms," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 8, pp. 1-5, Aug 2026. https://doi.org/10.55041/IJSREM66638

Full Article/Conclusion

This project has designed, implemented, and validated FraudLens, a hybrid fraud detection framework that combines rule-based logic, unsupervised anomaly detection, and supervised machine learning classification to identify fake discounts in e-commerce. By anchoring every discount claim against a 90-day historical price baseline and layering Isolation Forest anomaly scores into a Random Forest and XGBoost classification pipeline, the system achieves high detection accuracy (weighted F1-score of 96.9%) while remaining interpretable through SHAP-based explainability. The accompanying interactive dashboard demonstrates that fraud detection results can be delivered to consumers in a transparent, actionable, and easy-to-understand format, moving beyond descriptive price trackers toward a genuine diagnostic tool for pricing integrity.

References

[1] H. L. S. Gino, J. R. Ponciano, C. D. G. Linhares, and A. J. M. Traina, “ECommVis: Supporting E-Commerce Marketplace Advertising Outcomes Through a Visual Analytics System,” IEEE Open Journal of the Computer Society, vol. 7, pp. 455–467, 2026. [2] Y. Yada, J. Feng, T. Matsumoto, N. Fukushima, F. Kido, and H. Yamana, “Dark Patterns in E-Commerce: A Dataset and Its Baseline Evaluations,” in Proc. 2022 IEEE International Conference on Big Data (IEEE BigData), Osaka, Japan, 2022, pp. 3015–3022, doi: 10.1109/BigData55660.2022.10020800. [3] J. Ramakrishnan, E. Shaabani, C. Li, and M. A. Sustik, “Anomaly Detection for an E-Commerce Pricing System,” arXiv preprint arXiv:1902.09566, 2019. [4] A. Mathur, G. Acar, M. J. Friedman, E. Lucherini, J. Mayer, M. Chetty, and A. Narayanan, “Dark Patterns at Scale: Findings from a Crawl of 11K Shopping Websites,” Proc. ACM Hum.-Comput. Interact., vol. 3, no. CSCW, Article 81, pp. 1–32, Nov. 2019, doi: 10.1145/3359183. [5] Y. Xu, M. Li, L. Cui, S. Huang, F. Wei, and M. Zhou, “LayoutLM: Pre-training of Text and Layout for Document Image Understanding,” in Proc. 26th ACM SIGKDD International Conference on Knowledge Discovery & Data Mining (KDD ’20), 2020, pp. 1192–1200, doi: 10.1145/3394486.3403172.

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Publication Date

8/10/2026

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