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    Project Review Credit Card Fraud Detection Using Machine

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    Project Review Credit Card Fraud Detection Using Machine

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    Project review Credit Card Fraud Detection using Machine

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    3 views14 pages

    Project Review Credit Card Fraud Detection Using Machine

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    bhorshrikant831

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    Genba Sopanrao Moze College of Engineering,

    Balewadi,Pune-411045

    Credit Card Fraud Detection using


    Machine
    Learning and Data Science
    Guided By:-
    ► Prof.Vajid
    Khan Sir
    Computer Department (JSCOE)

    Presented By:-
    ►Devyani Jadhav
    ►Prashant Kalokhe
    ►Savita Mahamuni
    ►Sonal Kamble
    Topics
    ► Abstract
    ► Introduction
    ► Literature Survey
    ► Problem Statement
    ► Aim and Objectives
    ► Technologies used
    ► Frauds Classification
    ► Approaches used to find Fraud
    ► References
    Abstract
    ► It is vital that credit card companies are able to identify fraudulent credit card
    transactions so that customers are not charged for items that they did not
    purchase.
    ► Such problems can be tackled with Data Science and its importance, along with
    Machine Learning, cannot be overstated. This project intends to illustrate the
    modelling of a data set using machine learning with Credit Card Fraud Detection
    ► The Credit Card Fraud Detection Problem includes modelling past credit card
    transactions with the data of the ones that turned out to be fraud. This model is
    then used to recognize whether a new transaction is fraudulent or not. Our
    objective here is to detect 100% of the fraudulent transactions while minimizing
    the incorrect fraud classifications. Credit Card Fraud Detection is a typical
    sample of classification.
    ► In this process, we have focused on analysing and pre-processing data sets as well
    as the deployment of multiple anomaly detection algorithms such as Local
    Outlier Factor and Isolation Forest algorithm on the PCA transformed Credit Card
    Transaction data.
    Introduction
    ► Popularity of online shopping is growing day to day . Credit card is
    the easy way to do online shopping. According to ACNielsen study
    conducted in 2005 one tenth of the world’s population is shopping
    online in same study it is also mentioned that credit cards are
    most popular mode of online payment.
    ► In case of multinational banks , the usage or average balance ,
    per borrower for credit card holder has rise up from Rs. 61,758 in
    2011 to Rs. 82,455 in 2012. in the same period private bank
    customers usage rise from Rs. 39,368 to Rs. 47,370 .
    ► As the number of credit card users increases world wide , the
    opportunities for fraudster to steal credit details and,
    subsequently, commit fraud are also grew up.
    Literature Survey-

    Abhinav Shrivastava etc al described tge “Credit card fraud detection


    method by using Hidden Markov Model (HMM). In this method , they
    model the sequence of operations in credit card transactions processing
    using a Hidden Markov Model (HMM) and show how it can be used for
    the detection of fraud transaction
    S. Ghosh and Douglas L. Reilly etc al describes the “ Credit card fraud
    detection with neural network. In this method , author use data from a
    Credit card issuer , a neural network based on credit card fraud
    detection system was trained on a large sample of labeled credit card
    account transactions and tested on a holdout data set that consisted of
    all account activity over a subsequent two month of time. The neural
    network was trained on examples of fraud due to stolen cards, lost
    cards, application card , mail – order fraud. Tge network detected
    significantly more fraud accounts with significantly fewer false
    positives over rule based on fraud detection procedures.
    Problem Statement-

    To detect credit card fraud by using data science


    using various methods and models.
    Aims and Objectives of the Project-

     The aim of the project is-


    To achieve insights and perceptions needed by necessary research in
    order to provide a solution to the society by creating a real time project
    that makes use of efficient algorithms and gives accurate results.
     The objectives of the project is –
    1) To implement machine learning algorithms and data science to dectect
    fraud with respect to time and amount of transaction.
    2) In real life fradulent transactions are spotted with actual transactions
    and simple pattern matching technique are not often enouth to detect
    those frauds perpectly.
    3) Performance of efficient fraud recognition system has thus become
    imperative for all credit card issuing banks to reduce their losses.
    Technologies Used
    ► For Module Working
    1. Pytorch
    2. Machine Learning
    3. Data Science

    ► Resourse Used :- Dataset from Kaggle


    Frauds are classified as:
    • Credit Card Frauds: Online and Offline
    • Card Theft
    • Account Bankruptcy
    • Device Intrusion
    • Application Fraud
    • Counterfeit Card
    • Telecommunication Fraud
    Some of the currently used approaches to
    detection of such fraud are:
    • Artificial Neural Network
    • Fuzzy Logic
    • Genetic Algorithm
    • Logistic Regression
    • Decision tree
    • Support Vector Machines
    • Bayesian Networks
    • Hidden Markov Model
    • K-Nearest Neighbour
    CONCLUSION:
    Credit card fraud is without a doubt an act of criminal dishonesty. This article has listed out the most common
    methods of fraud along with their detection methods and reviewed recent findings in this field. This paper
    has also explained in detail, how machine learning can be applied to get better results in fraud detection
    along with the algorithm, pseudocode, explanation its implementation and
    experimentation results.
    While the algorithm does reach over 99.6% accuracy, its precision remains only a 28% when a tenth of the
    data set is taken into consideration. However, when the entire dataset is fed into the algorithm, the precision
    rises to 33%. This high percentage of accuracy is to be expected due to the huge imbalance between the
    number of valid and number of genuine transactions.
    Since the entire dataset consists of only two days’ transaction records, its only a fraction of data that can be
    made available if this project were to be used on a commercial scale. Beingbased on machine learning
    algorithms, the program will only increase its efficiency over time as more data is put into it.
    References : -
    Research Paper Published by
    [1] “Credit Card Fraud Detection Based on Transaction Behaviour -by
    John Richard D. Kho, Larry A. Vea” published by Proc. of the 2017
    IEEE Region 10 Conference (TENCON), Malaysia, November 5-8, 2017
    [2] CLIFTON PHUA1, VINCENT LEE1, KATE SMITH1 & ROSS
    GAYLER2 “ A Comprehensive Survey of Data Mining-based Fraud
    Detection Research” published by School of Business Systems, Faculty
    of Information Technology, Monash University, Wellington Road,
    Clayton, Victoria 3800, Australia
    [3] “Survey Paper on Credit Card Fraud Detection by Suman” , Research
    Scholar, GJUS&T Hisar HCE, Sonepat published by International
    Journal of Advanced Research in Computer Engineering & Technology
    (IJARCET) Volume 3 Issue 3, March 2014
    [4] “Research on Credit Card Fraud Detection Model Based on Distance
    Sum – by Wen-Fang YU and Na Wang” published by 2009
    International Joint Conference on Artificial Intelligence
    [5] “Credit Card Fraud Detection through Parenclitic Network AnalysisBy Massimiliano
    Zanin, Miguel Romance, Regino Criado, and
    SantiagoMoral” published by Hindawi Complexity Volume 2018,
    Article ID 5764370,
    [6] David J.Wetson,David J.Hand,M Adams,Whitrow and Piotr Jusczak
    “Plastic Card Fraud Detection using Peer Group Analysis” Springer, Issue 2008
    Thank You....

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