This paper is published in Volume-2, Issue-4, 2016
Area
Computer Science and Engineering
Author
Mehak Kamboj, Shankey Gupta
Org/Univ
DVIET, Karnal,Haryana, India
Pub. Date
12 July, 2016
Paper ID
V2I4-1145
Publisher

Citationsacebook

IEEE
Mehak Kamboj, Shankey Gupta. Credit Card Fraud Detection and False Alarms Reduction using Support Vector Machines, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJARIIT.com.

APA
Mehak Kamboj, Shankey Gupta (2016). Credit Card Fraud Detection and False Alarms Reduction using Support Vector Machines. International Journal of Advance Research, Ideas and Innovations in Technology, 2(4) www.IJARIIT.com.

MLA
Mehak Kamboj, Shankey Gupta. "Credit Card Fraud Detection and False Alarms Reduction using Support Vector Machines." International Journal of Advance Research, Ideas and Innovations in Technology 2.4 (2016). www.IJARIIT.com.

Abstract

In day to day life credit cards are used for purchasing goods and services with the help of virtual card for online transaction or physical card for offline transaction. In a physical-card based purchase, the cardholder presents his card physically to a merchant for making a payment. To carry out fraudulent transactions in this kind of purchase; an attacker has to steal the credit card. To commit fraud in these types of purchases, a fraudster simply needs to know the card details. Most of the time, the genuine cardholder is not aware that someone else has seen or stolen his card information. The only way to detect this kind of fraud is to analyze the spending patterns on every card and to figure out any inconsistency with respect to the “usual” spending patterns. To commit fraud in these types of purchases, a fraudster simply needs to know the card details. Most of the time, the genuine cardholder is not aware that someone else has seen or stolen his card information. The only way to detect this kind of fraud is to analyze the spending patterns on every card and to figure out any inconsistency with respect to the “usual” spending patterns. Fraud detection based on the analysis of existing purchase data of cardholder is a promising way to reduce the rate of successful credit card frauds. As manually processing credit card transactions is a time-consuming and resource-demanding task, credit card issuers search for high-performing and efficient algorithms that automatically look for anomalies in the set of incoming transactions. Data mining is a well-known and often suitable solution to big data problems involving risk such as credit risk modelling, churn prediction and survival analysis. Nevertheless, fraud detection in general is an atypical prediction task which requires a tailored approach to address and predict future fraud. Though most of the fraud detection systems show good results in detecting fraudulent transactions, they also lead to the generation of too many false alarms. This assumes significance especially in the domain of credit card fraud detection where a credit card company needs to minimize its losses but, at the same time, does not wish the cardholder to feel restricted too often. In this work, we propose a novel credit card fraud detection system based on the integration support vector machines.