Research Journal of Engineering and Technology

V. Bhusari ¹, S. Patil ²

Affiliations
1 College of Computer Engineering, JSPM, Bhivarabai Sawant Institute of Technology and Research (W), Pune-411043, IN
2 College of Engineering, Bhartiya Vidhya Peeth, Pune, IN

Abstract

The most accepted payment mode nowadays used is credit card for both online and offline. Credit card provides cash less shopping at every shop in all countries. It is the most convenient way to do online shopping, paying bills etc. Hence fraud detection related with it is also growing. In the existing credit card fraud detection system, the fraud is detected after it is done in the credit card transaction processing. As many of online purchases are made it is very difficult to know the person who is doing fraud. Due to this credit card transaction there is development of new concepts for secure transaction. This paper shows how Hidden Markov Model (HMM) can be used successfully to obtain a high fraud coverage combined with a low false alarm rate.

Keywords

Hidden Markov Model, Fraud Transaction, Credit Card, Online.

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V. Bhusari ¹, S. Patil ¹

Affiliations
1 Department of Computer Engineering, College of Engineering, Bharati Vidhyapeeth University, Pune-411043, IN

Abstract

In modern world, the most accepted payment mode is credit card for both online and offline, it gives cash less shopping at almost every shop in developed country. Hence, fraud transaction using credit card also increases. In the existing credit card fraud detection business processing system, fraud is detected after fraud is done in the credit card transaction processing. Hidden Markov Model is the statistical tools for engineer ad scientists to solve various problems. In this paper, it is shown that credit card fraud can be detected using hidden Markov model during transactions. In present models, fraudulent transaction will be detected after transaction is done. Hidden Markov model helps to obtain a high fraud coverage combined with a low false alarm rate.

Keywords

Hidden Markov Model, Fraud, Transaction, Credit Card, Detection.

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