A novel CAD scheme for automated lung nodule detection is proposed to assist radiologists with the detection of lung cancer on CT scans. The proposed scheme is composed of four major steps: (1) lung volume segmentation, (2) nodule candidate extraction and grouping, (3) false positives reduction for the non-vessel tree group, and (4) classification for the vessel tree group. Lung segmentation is performed first. Then, 3D labeling technology is used to divide nodule candidates into two groups. For the non-vessel tree group, nodule candidates are classified as true nodules at the false positive reduction stage if the candidates survive the rule-based classifier and are not screened out by the dot filter. For the vessel tree group, nodule candidates are extracted using dot filter. Next, RSFS feature selection is used to select the most discriminating features for classification. Finally, WSVM with an undersampling approach is adopted to discriminate true nodules from vessel bifurcations in vessel tree group. The proposed method was evaluated on 154 thin-slice scans with 204 nodules in the LIDC database. The performance of the proposed CAD scheme yielded a high sensitivity (87.81%) while maintaining a low false rate (1.057 FPs/scan). The experimental results indicate the performance of our method may be better than the existing methods.