DETECTING CREDIT CARD FRAUD WITH ADVANCED MACHINE LEARNING AND DEEP LEARNING METHODS

Abstract

Credit card frauds are easy and friendly targets. E-commerce and many other online sites have increased the online payment modes, increasing the risk for online frauds. Increase in fraud rates, researchers started using different machine learning methods to detect and analyse frauds in online transactions. The main aim of the paper is to design and develop a novel fraud detection method for Streaming Transaction Data, with an objective, to analyse the past transaction details of the customers and extract the behavioural patterns. Where cardholders are clustered into different groups based on their transaction amount. Then using sliding window strategy to aggregate the transaction made by the cardholders from different groups so that the behavioural pattern of the groups can be extracted respectively. Later different classifiers are trained over the groups separately. And then the classifier with better rating score can be chosen to be one of the best methods to predict frauds. Thus, followed by a feedback mechanism to solve the problem of concept drift. In this paper, we worked with European credit card fraud dataset.