# EmDT: Embedding Diffusion Transformer for Tabular Data Generation in Fraud Detection

arXiv: https://arxiv.org/abs/2603.13566 · HTML: https://mlsanity.com/paper/2603.13566/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Flow matching, time series and science, one of 14 directions in Diffusion models.
- Builds on 16 of its 34 references that are in the map.
- First posted on arXiv 13 Mar 2026.

## Placed in

- Diffusion models / [Flow matching, time series and science](https://mlsanity.com/diffusion/flow-matching-time-series-and-science/)

## Builds on (most cited first, 16 of 16)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Denoising Diffusion Probabilistic Models](https://mlsanity.com/paper/2006.11239/) (2020)
- [PyTorch: An Imperative Style, High-Performance Deep Learning Library](https://mlsanity.com/paper/1912.01703/) (2019)
- [Score-Based Generative Modeling through Stochastic Differential Equations](https://mlsanity.com/paper/2011.13456/) (2020)
- [XGBoost: A Scalable Tree Boosting System](https://mlsanity.com/paper/1603.02754/) (2016)
- [Optuna: A Next-generation Hyperparameter Optimization Framework](https://mlsanity.com/paper/1907.10902/) (2019)
- [DiffWave: A Versatile Diffusion Model for Audio Synthesis](https://mlsanity.com/paper/2009.09761/) (2020)
- [Modeling Tabular data using Conditional GAN](https://mlsanity.com/paper/1907.00503/) (2019)
- [TabDDPM: Modelling Tabular Data with Diffusion Models](https://mlsanity.com/paper/2209.15421/) (2022)
- [Imbalanced-learn: A Python Toolbox to Tackle the Curse of Imbalanced Datasets in Machine Learning](https://mlsanity.com/paper/1609.06570/) (2016)
- [Diagnosing and Enhancing VAE Models](https://mlsanity.com/paper/1903.05789/) (2019)
- [CTAB-GAN: Effective Table Data Synthesizing](https://mlsanity.com/paper/2102.08369/) (2021)
- [Re-imagine the Negative Prompt Algorithm: Transform 2D Diffusion into 3D, alleviate Janus problem and Beyond](https://mlsanity.com/paper/2304.04968/) (2023)
- [FinDiff: Diffusion Models for Financial Tabular Data Generation](https://mlsanity.com/paper/2309.01472/) (2023)
- [Diffusion Models for Tabular Data Imputation and Synthetic Data Generation](https://mlsanity.com/paper/2407.02549/) (2024)
- [Enhancing Credit Card Fraud Detection A Neural Network and SMOTE Integrated Approach](https://mlsanity.com/paper/2405.00026/) (2024)

## Abstract (arXiv)

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 privacy protection and preserving feature correlations present in the original data.