Design And Implementation Of A Credit Card Fraud Detection System

1.2 STATEMENT OF THE PROBLEM

It has already been mentioned that the losses of a credit card fraud can affect all consumers, merchants and issuing banks. Therefore, it is important to establish techniques for detecting and preventing credit card fraud. This research contains a variety of techniques which can be used to build fraud detection systems. Understanding the characteristics of all those techniques can be a tedious task. A technique which promises a high predictive accuracy may be an appealing candidate to be used in the fraud detection system. However, there are various different parameters that need to be considered before deciding which technique best suits the needs of a particular situation. And also as all the transaction is maintained in a log. And also now a day’s lot of online purchase are made so we don’t know the person how is using the card online, we just capture the IP address for verification purpose. So there is a need to develop a system to fight cyber -crime and to aid in investigating the fraud. To avoid the entire above disadvantage we propose the system to detect the fraud in a best and easy way.

1.3 AIMS AND OBJECTIVE OF THE STUDY

This research aims at the Design and Implementation of a credit card fraud detention system to prevent credit card fraud.

The following are the objectives of the study:

1. Develop a system to keep record of every fraudulent credit card transaction online.

2. A system to easily detect a stolen credit card. 

3. To easily track and report fraudulent transactions to relevant agency. 

1.4 SCOPE OF THE STUDY

The scope of the research is focused on implementing a credit card fraud detention system to compact the increasing cyber-crimes faced by our country.

1.5 DEFINITION OF TERMS 

- Credit Card - A credit card is a thin rectangular slab of plastic issued by a financial company, that lets cardholders borrow funds with which to pay for goods and services.

- Fraudulent - Obtained, done by, or involving deception, especially criminal deception.

- Verification - The process of establishing the truth, accuracy, or validity of something.

- Consumer- A person who purchases goods and services for personal use.

- Transaction- An instance of buying or selling something.

- Purchase- Acquire (something) by paying for it; buy.