This paper addresses the risk of fraud in credit card transactions by developing a probabilistic model for quickest detection illegitimate purchases. Using optimal stopping theory, goal is to determine moment, known as disorder or time, at which continuously monitored process consumer’s exhibits due fraud, order return best trade-off between two sources cost: on one hand, time should be detecte...

We propose a novel approach for credit card fraud detection, which combines evidences from current as well as past behavior. The fraud detection system (FDS) consists of four components, namely, rule-based filter, Dempster–Shafer adder, transaction history database and Bayesian learner. In the rule-based component, we determine the suspicion level of each incoming transaction based on the exten...

Credit card is a sign of credit that given to customers with good by commercial bank or firm. It takes the shape signature blank space on back and name dissipated bank, expiration date, CVS number, cardholder front. A payment can give cardholders’ abilities enable exchange for goods services based their credibility debt score. In this paper, it will explore fraud detection predictive model avoi...

Substantial losses from credit card fraud are forcing retail industry executives to reevaluate the effectiveness of their ability to prevent this type of crime. In 1992, management at Tops Appliance City Inc. decided to reassess its own fraud prevention program in an attempt to prevent future losses. An analysis of the Tops' problem pointed out the need to differentiate legitimate from illegiti...

Neural networks have represented a serious barrier-to-entry in their application in automated fraud detection due to their black box and often proprietary nature which is overcome here by combining them with symbolic rule extraction. A Sparse Oracle-based Adaptive Rule extraction algorithm is used to produce comprehensible rules from a neural network to aid the detection of credit card fraud. I...

Credit and debit cards have spread and skyrocketed all around the world to become the most popular means of payments in many countries. Despite their enormous popularity, cards are not free of risk. Technology development and e-commerce have exponentially increased internal credit card incidents. This paper identifies and quantifies the different types of credit card fraud and puts into questio...

A lot of transactions occur in banking sector due to day to day operations. E-Commerce is widely used in busy life. In E-commerce life, credit card transactions are increasing day by day. This will increase in frauds in credit card. Credit card fraud is a major problem in financial industry. Many technologies have been developed to reduce the fraud in credit card such as data mining fuzzy logic...

The use of credit cards is of paramount importance in improving the economic strength of any nation, however, fraudulent activities associated with it is of great concern. When fraud occurs on credit cards, the negative impact is huge as the financial loss experienced cuts across all the parties involved. This paper provides a proactive measure at detecting fraudulent activities regarding the c...

The use of credit cards is of paramount importance in improving the economic strength of any nation, however, fraudulent activities associated with it is of great concern. When fraud occurs on credit cards, the negative impact is huge as the financial loss experienced cuts across all the parties involved. This paper provides a proactive measure at detecting fraudulent activities regarding the c...