1. Credit Card Fraud Detection

2. Contents Introduction Problem Definition Proposed Solution
Block Diagram
Implementation
Software and Hardware Requirements
Benefits
Results and Conclusion

3. Introduction Online Shopping – one of the largest and fast going trend
Mode of payment – credit card, debit card, Net Banking
Online payment does not require physical card
Major Risk – credit /debit card detail is known to other

4. Problem Definition Online payment does not require physical card
Anyone who know the details of card can make fraud transactions
Currently, card holder comes to know only after the fraud transaction is carried out.
No mechanism to track the fraud transaction

5. Proposed Solution
A mechanism is developed to determine whether the given transaction is fraud or not
The mechanism uses Hidden Markov Model to detect fraud transaction
Hidden Markov Model works on the basis of spending habit of user.
Classifies user into Low, Medium or High category

6. Block Diagram
User
e-Commerce Website
Bank
FDS

7. Implementation
Project is implemented using following technologies : HTML, CSS, JavaScript, PHP and MySQL
HTML and CSS is used for interface designing
JavaScript is used for client side validation
PHP is used for server side scripting
MySQL is used for database

8. Hardware & Software Req.
Online
Auction System
Hardware
Software
Windows 2000/ Windows XP/ Windows Vista/ Windows 7
WAMP
Macromedia Dreamweaver
Pentium Core 2 Duo processor or above
I GB RAM
20 GB HDD
Router for Internet Connection

9. Benefits
Reduction in number of fraud transaction
User can safely use his credit / debit card for online transaction
Added layer of security

10. Results and Conclusion
Fraud detection is based on Hidden Markov Model which is learning algorithm, hence not 100% correct
It has detected those transaction as fraud where user belongs to low category and high category payment is made or vice versa
The mechanism require at least 10 transaction to determine accurately the transaction as fraud or not.

11. Thank You