Detecting Credit Card Fraud by Decision Trees and Support Vector Machines
نویسندگان
چکیده
— With the developments in the Information Technology and improvements in the communication channels, fraud is spreading all over the world, resulting in huge financial losses. Though fraud prevention mechanisms such as CHIP&PIN are developed, these mechanisms do not prevent the most common fraud types such as fraudulent credit card usages over virtual POS terminals or mail orders. As a result, fraud detection is the essential tool and probably the best way to stop such fraud types. In this study, classification models based on decision trees and support vector machines (SVM) are developed and applied on credit card fraud detection problem. This study is one of the firsts to compare the performance of SVM and decision tree methods in credit card fraud detection with a real data set.
منابع مشابه
Analysis of Credit Card Fraud Detection Techniques: based on Certain Design Criteria
Financial fraud is increasing significantly with the development of modern technology and the global superhighways of communication, resulting in the loss of billions of dollars worldwide each year. The companies and financial institution loose huge amounts due to fraud and fraudsters continuously try to find new rules and tactics to commit illegal actions. Thus, fraud detection systems have be...
متن کاملEnsemble Classification and Extended Feature Selection for Credit Card Fraud Detection
Due to the rise of technology, the possibility of fraud in different areas such as banking has been increased. Credit card fraud is a crucial problem in banking and its danger is over increasing. This paper proposes an advanced data mining method, considering both feature selection and decision cost for accuracy enhancement of credit card fraud detection. After selecting the best and most effec...
متن کاملA Revived Survey of Various Credit Card Fraud Detection Techniques
As there is a vast advancement in the E-commerce technology, the use of credit cards has grown up. The credit card has become the crucial mode of payment so with the rise in the credit card transactions, the credit card frauds have also become frequent nowadays. [1] Thus, an improved fraud detection system has become essential to maintain the reliability of the payment system. The criterion is ...
متن کاملDetecting Suspicious Card Transactions in unlabeled data of bank Using Outlier Detection Techniqes
With the advancement of technology, the use of ATM and credit cards are increased. Cyber fraud and theft are the kinds of threat which result in using these Technologies. It is therefore inevitable to use fraud detection algorithms to prevent fraudulent use of bank cards. Credit card fraud can be thought of as a form of identity theft that consists of an unauthorized access to another person's ...
متن کاملBehavior Based Credit Card Fraud Detection Using Support Vector Machines
Along with the great increase of internet and e-commerce, the use of credit card is an unavoidable one. Due to the increase of credit card usage, the frauds associated with this have also increased. There are a lot of approaches used to detect the frauds. In this paper, behavior based classification approach using Support Vector Machines are employed and efficient feature extraction method also...
متن کامل