scholarly journals A Relative Investigation of Various Algorithms for Online Financial Fraud Detection Techniques

2021 ◽  
Author(s):  
C Pallavi ◽  
Girija R ◽  
Vedhapriyavadhana R ◽  
Barnali Dey ◽  
Rajiv Vincent
Keyword(s):  
Credit Card ◽  
Detection System ◽  
Geographical Area ◽  
Fraud Detection ◽  
Location Analysis ◽  
Financial Fraud ◽  
Detection Techniques ◽  
Spending Patterns ◽  
Efficient Data ◽  
Financial Transactions

Online financial transactions play a crucial role in today’s economy. It becomes an unavoidable part of the business and global activities. Transaction fraud executes thoughtful intimidations to e-commerce spending. Now-a-days, the online contract or business is fetching additional sound by knowing the types of online transaction frauds associated with, these are raising which disturbs the currency accompanying business. It has the capability to confine and encumber the contract accomplished by the intruder from an honest consumer’s credit card information. In order to avoid such a problem, the proposed system is established transaction limit for the customers. Efficient data is only considered for detecting fraudulent user action and it happens only at the time of registration. Transaction which is happening for any individual is not at all known to any FDS (Fraud Detection System) consecutively at the bank which mainly issues credit cards to customers. To speak out this problem, BLA (Behaviour and Location Analysis) is executed. The FDS tracks at a credit card provided by bank. All the inbound business is directed to the FDS aimed at confirmation, authentication and verification. FDS catches the card particulars and matter to confirm that the operation is fake or genuine. The pick-up merchandises are unknown to Fraud Detection System. If the transaction is assumed to be fraud, then the corresponding bank declines it. In order to verify the individuality, uniqueness or originality, it uses spending patterns and geographical area. In case, if any suspicious pattern is identified or detected, the FDS system needs verification. The information which is already registered by the user, the system identifies infrequent outlines in the disbursement method. After three invalid attempts, the system will hinder the user. In this proposed system, most of the algorithms are checked and investigated for online financial fraud detection techniques.

scholarly journals Fraudulent credit card transaction detection using soft computing techniques

2021 ◽  
Vol 23 (3) ◽  
pp. 1634
Author(s):  
Aishwarya Priyadarshini ◽  
Sanhita Mishra ◽  
Debani Prasad Mishra ◽  
Surender Reddy Salkuti ◽  
Ramakanta Mohanty
Keyword(s):  
Soft Computing ◽  
Credit Card ◽  
Nearest Neighbor ◽  
Detection System ◽  
Fraud Detection ◽  
K Nearest Neighbor ◽  
Computationally Efficient ◽  
Detection Techniques ◽  
Government Organizations ◽  
Soft Computing Techniques

<p>Nowadays, fraudulent or deceitful activities associated with financial transactions, predominantly using credit cards have been increasing at an alarming rate and are one of the most prevalent activities in finance industries, corporate companies, and other government organizations. It is therefore essential to incorporate a fraud detection system that mainly consists of intelligent fraud detection techniques to keep in view the consumer and clients’ welfare alike. Numerous fraud detection procedures, techniques, and systems in literature have been implemented by employing a myriad of intelligent techniques including algorithms and frameworks to detect fraudulent and deceitful transactions. This paper initially analyses the data through exploratory data analysis and then proposes various classification models that are implemented using intelligent soft computing techniques to predictively classify fraudulent credit card transactions. Classification algorithms such as K-Nearest neighbor (K-NN), decision tree, random forest (RF), and logistic regression (LR) have been implemented to critically evaluate their performances. The proposed model is computationally efficient, light-weight and can be used for credit card fraudulent transaction detection with better accuracy.</p>

scholarly journals Human behavior scoring in credit card fraud detection

2021 ◽  
Vol 10 (3) ◽  
pp. 698
Author(s):  
Imane Sadgali ◽  
Nawal Sael ◽  
Faouzia Benabbou
Keyword(s):  
Rough Set ◽  
Credit Card ◽  
Rough Set Theory ◽  
Detection System ◽  
Hybrid Approach ◽  
Score Function ◽  
Fraud Detection ◽  
Financial Fraud ◽  
Electronic Payment ◽  
Financial Systems

<span lang="EN-US">Now days, the analysis of the behavior of cardholders is one of the important fields in electronic payment. This kind of analysis helps to extract behavioral and transaction profile patterns that can help financial systems to better protect their customers. In this paper, we propose an intelligent machine learning (ML) system for rules generation. It is based on a hybrid approach using rough set theory for feature selection, fuzzy logic and association rules for rules generation. A score function is defined and computed for each transaction based on the number of rules, that make this transaction suspicious. This score is kind of risk factor used to measure the level of awareness of the transaction and to improve a card fraud detection system in general. The behavior analysis level is a part of a whole financial fraud detection system where it is combined to intelligent classification to improve the fraud detection. In this work, we also propose an implementation of this system integrating the behavioral layer. The system results obtained are very convincing and the consumed time by our system, per transaction was 6 ms, which prove that our system is able to handle real time process.</span>

scholarly journals An Xgboost based system for financial fraud detection

2020 ◽  
Vol 214 ◽  
pp. 02042
Author(s):  
Shimin LEI ◽  
Ke XU ◽  
YiZhe HUANG ◽  
Xinye SHA
Keyword(s):  
Machine Learning ◽  
Data Mining ◽  
Credit Card ◽  
Detection System ◽  
Fraud Detection ◽  
Financial Fraud ◽  
Credit Card Fraud

Credit card fraud leads to billions of losses in online transaction. Many corporations like Alibaba, Amazon and Paypal invest billions of dollars to build a safe transaction system. There are some studies in this area having tried to use machine learning or data mining to solve these problems. This paper proposed our fraud detection system for e- commerce merchant. Unlike many other works, this system combines manual and automatic classifications. This paper can inspire researchers and engineers to design and deploy online transaction systems.

scholarly journals Credit Card Fraud Detection System

2020 ◽  
Vol 6 (12) ◽  
pp. 24-27
Author(s):  
Shashank Singh and Meenu Garg
Keyword(s):  
Machine Learning ◽  
Credit Card ◽  
Data Science ◽  
Detection System ◽  
Fraud Detection ◽  
Detection Problem ◽  
Credit Card Fraud ◽  
Local Outlier Factor ◽  
Local Outlier ◽  
Isolation Forest

It is essential that Visa organizations can distinguish false Mastercard exchanges so clients are not charged for things that they didn't buy. Such issues can be handled with Data Science and its significance, alongside Machine Learning, couldn't be more important. This undertaking expects to outline the demonstrating of an informational collection utilizing AI with Credit Card Fraud Detection. The Credit Card Fraud Detection Problem incorporates demonstrating past Visa exchanges with the information of the ones that ended up being extortion. This model is then used to perceive if another exchange is fake. Our target here is to identify 100% of the fake exchanges while limiting the off base misrepresentation arrangements. Charge card Fraud Detection is an average example of arrangement. In this cycle, we have zeroed in on examining and pre- preparing informational indexes just as the sending of numerous irregularity discovery calculations, for example, Local Outlier Factor and Isolation Forest calculation on the PCA changed Credit Card Transaction

Parameters of automated fraud detection techniques during online transactions

2018 ◽  
Vol 25 (3) ◽  
pp. 702-720 ◽  
Author(s):  
Vipin Khattri ◽  
Deepak Kumar Singh
Keyword(s):  
Detection System ◽  
Fraud Detection ◽  
Security System ◽  
Research Papers ◽  
Content Type ◽  
Detection Techniques ◽  
Online Transactions ◽  
Detection Systems ◽  
Different Types ◽  
Depth Study

Purpose This paper aims to provide information of parameters and techniques used in the automated fraud detection system during online transaction. With the increase in the use of online transactions, the concerns regarding data security have also increased. To tackle the frauds, lot of research has been done and plethora of papers are available on the related topics. The purpose of this paper is to provide the clear pathway for researchers to move in the direction of development of automated fraud detection system to prevent the fraud during online transaction. Design/methodology/approach This literature review analyses and compares the different types of techniques for detecting fraud during online transaction. An in-depth study of the most prominent journals has been done and the core methodology of the papers has been presented. This article also shed some light on different types of parameters used in fraud detection techniques during online transaction. Findings There are vast varieties of various fraud detection techniques, and every technique has completed task in its own way. After studying approximately 41 research papers, 14 books and four reports, in total 30 parameters have been identified and a detailed study of the parameters has been presented. The parameters are also listed with their details that how these parameters are used in the security system for detecting online transaction fraud. Research limitations/implications This paper provides empirical insight about the parameters and their prominence in the development of automated fraud detection security system of online transaction. This paper encourages the researchers to development of improved fraud detection system. Practical implications This paper will pave the way for researchers to do a focused research on the fraud detection methodologies. The analysis will help in zeroing down the most prevalent topic of research in this field. The researchers will be able to understand the internal details of parameters and techniques used in the fraud detection systems. This literature also helps the research to think in a variety of ways that how these parameters will be used in the development of fraud detection system. Originality/value This paper is one of the most comprehensive reviews in its field. It tries and attempts to fill a void created because of lack of compilation of the laid fraud detection parameters.

Data Mining for Fraud Detection System

2011 ◽  
pp. 411-416
Author(s):  
Roberto Marmo
Keyword(s):  
Data Mining ◽  
Credit Card ◽  
User Behavior ◽  
Detection System ◽  
Fraud Detection ◽  
Modern Technology ◽  
Data Sets ◽  
Security Measures ◽  
Economic Activities ◽  
Huge Data

As a conseguence of expansion of modern technology, the number and scenario of fraud are increasing dramatically. Therefore, the reputation blemish and losses caused are primary motivations for technologies and methodologies for fraud detection that have been applied successfully in some economic activities. The detection involves monitoring the behavior of users based on huge data sets such as the logged data and user behavior. The aim of this contribution is to show some data mining techniques for fraud detection and prevention with applications in credit card and telecommunications, within a business of mining the data to achieve higher cost savings, and also in the interests of determining potential legal evidence. The problem is very difficult because fraudsters takes many different forms and are adaptive, so they will usually look for ways to avoid every security measures.

scholarly journals Credit Card Fraud Detection through Parenclitic Network Analysis

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-9 ◽  
Author(s):  
Massimiliano Zanin ◽  
Miguel Romance ◽  
Santiago Moral ◽  
Regino Criado
Keyword(s):  
Data Mining ◽  
Complex Network ◽  
Credit Card ◽  
Reference Group ◽  
Detection System ◽  
Fraud Detection ◽  
Data Representation ◽  
Classification Algorithm ◽  
Data Set ◽  
Economic Implications

The detection of frauds in credit card transactions is a major topic in financial research, of profound economic implications. While this has hitherto been tackled through data analysis techniques, the resemblances between this and other problems, like the design of recommendation systems and of diagnostic/prognostic medical tools, suggest that a complex network approach may yield important benefits. In this paper we present a first hybrid data mining/complex network classification algorithm, able to detect illegal instances in a real card transaction data set. It is based on a recently proposed network reconstruction algorithm that allows creating representations of the deviation of one instance from a reference group. We show how the inclusion of features extracted from the network data representation improves the score obtained by a standard, neural network-based classification algorithm and additionally how this combined approach can outperform a commercial fraud detection system in specific operation niches. Beyond these specific results, this contribution represents a new example on how complex networks and data mining can be integrated as complementary tools, with the former providing a view to data beyond the capabilities of the latter.

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