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INTRODUCTION

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11 views

INTRODUCTION

Uploaded by

gvs25301
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION

There are various fraudulent activities detection techniques has implemented in credit card
transactions have been kept in researcher minds to methods to develop models based on artificial
intelligence, data mining, fuzzy logic and machine learning. Credit card fraud detection is
significantly difficult, but also popular problem to solve. In our proposed system we built the
credit card fraud detection using Machine learning. With the advancement of machine learning
techniques. Machine learning has been identified as a successful measure for fraud detection. A
large amount of data is transferred during online transaction processes, resulting in a binary
result: genuine or fraudulent. Within the sample fraudulent datasets, features are constructed.
These are data points namely the age and value of the customer account, as well as the origin of
the credit card. There are hundreds of features and each contributes, to varying extents, towards
the fraud probability. Note, the level in which each feature contributes to the fraud score is
generated by the artificial intelligence of the machine which is driven by the training set, but is
not determined by a fraud analyst. So, in regards to the card fraud, if the use of cards to commit
fraud is proven to be high, the fraud weighting of a transaction that uses a credit card will be
equally so. However, if this were to shrink, the contribution level would parallel. Simply make,
these models self-learn without explicit programming such as with manual review. Credit card
fraud detection using Machine learning is done by deploying the classification and regression
algorithms. We use supervised learning algorithm such as Random forest algorithm to classify
the fraud card transaction in online or by offline. Random forest is advanced version of Decision
tree. Random forest has better efficiency and accuracy than the other machine learning
algorithms. Random forest aims to reduce the previously mentioned correlation issue by picking
only a subsample of the feature space at each split. Essentially, it aims to make the trees de-
correlated and prune the trees by fixing a stoping criteria for node splits, which I will be cover in
more detail later.

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