In this study we develop a method which improves a credit card fraud detection solution currently being used in a bank. With this solution each transaction is scored and based on these scores the transactions are classified as fraudulent or legitimate. In fraud detection solutions the typical objective is to minimize the wrongly classified number of transactions. However, in reality, wrong clas...

Traditional credit card payment is not secure against credit card frauds because an attacker can easily know a semisecret credit card number that is repetitively used. Recently one-time transaction number has been proposed by some researchers and credit card companies to enhance the security in credit card payment. Following this idea, we present a practical security enhancement scheme for one-...

Corporate fraud these days represents a huge cost to our economy. In the paper we address one specific type of corporate fraud, internal transaction fraud. Given the omnipresence of stored history logs, the field of process mining rises as an adequate answer to mitigating internal transaction fraud. Process mining diagnoses processes by mining event logs. This way we can expose opportunities to...

Theft of stored credit card information is an increasing threat to e-commerce. We propose a dynamic virtual credit card number scheme that reduces the damage caused by stolen credit card numbers. A user can use an existing credit card account to generate multiple virtual credit card numbers that are either usable for a single transaction or are tied with a particular merchant. We call the schem...

Letter of Credit is an international payment instrument whereby the issuing bank undertakes to pay the beneficiary, against presentation of certain stipulated documents, according to the conditions of the Letter of Credit. Discounting of LC for the short-term financing of the seller, due to the independent and irrevocable undertaking of the bank to make payment, is prevalent. Beneficiary gets t...

Background: Prepaid cards are reloadable charge cards typically designed for customers that would not be able to have a traditional credit card due to no or poor credit history, and hence unable to open checking account or credit card at a bank. Many prepaid card customers would have their salary credited to their account and make most withdrawals and purchases on this card since they do not ha...

People have transferred their business model from traditional commerce to e-commerce in recent decades. Both shopping and payment can be completed through the Internet and bring convenience to consumers and business opportunities to industry. These trade techniques are mostly set up based on the SSL (Secure Sockets Layer). SSL provides the security for transaction information and is easy to set...

Data mining has been increasing as one of the chief key features of many security initiatives. Often, used as a means for detection of fraud, assessing risk as well. Data mining involves the use of data analysis tools to discover unknown, valid patterns as well as relationships in large data sets. Decades have seen a massive growth in the use of credit cards as a transactional medium. Data mini...

Instant identification of outlier patterns is very important in modern-day engineering problems such as credit card fraud detection and network intrusion detection. Most previous studies focused on finding outliers that are hidden in numerical datasets. Unfortunately, those outlier detection methods were not directly applicable to real life transaction databases. Outlier detection methods are d...