Behavioral Based Credit Card Fraud Detection
Credit card fraud is a significant threat in the BFSI sector. This credit card fraud detection system analyzes user behavioral patterns and their location to identify any unusual patterns. This consists of user characteristics, which includes user spending styles as well as standard user geographic places to verify his identity. One of the user behavior patterns includes spending habits, usage patterns, etc. This system deals with user credit card data for various characteristics, which includes user country, usual spending procedures. Based upon previous transactions information of that person, the system recognizes unusual patterns in the payment method. The fraud detection system contains the past transaction data of each user. Based on this data, it identifies the standard user behavior patterns for individual users, and any deviation from those normal user patterns becomes a trigger for the detection system. If it detects any unusual patterns, then user will be required to undergo the security verification, which identifies the original user using QR code recognition system. In case of any unusual activity, the system not only raises alerts but it will block the user after three invalid attempts.