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Credit Card Fraud Detection Using State-Of-The-Art Machine Learning

The document discusses using machine learning and deep learning algorithms to detect credit card fraud. It proposes applying convolutional neural network architectures with additional layers to improve fraud detection performance compared to existing models. The deep learning model is found to outperform state-of-the-art machine learning and deep learning algorithms for credit card fraud detection.

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archana vijayan
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Download as PPTX, PDF, TXT or read online on Scribd
875 views

Credit Card Fraud Detection Using State-Of-The-Art Machine Learning

The document discusses using machine learning and deep learning algorithms to detect credit card fraud. It proposes applying convolutional neural network architectures with additional layers to improve fraud detection performance compared to existing models. The deep learning model is found to outperform state-of-the-art machine learning and deep learning algorithms for credit card fraud detection.

Uploaded by

archana vijayan
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Credit Card Fraud Detection Using

State-of-the-art Machine Learning


And Deep Learning Algorithms
ABSTRACT
• People can use credit cards for online transactions as it provides an efficient and
easy-to-use facility.
• With the increase in usage of credit cards, the capacity of credit card misuse has
also enhanced. Credit card frauds cause significant financial losses for both credit
card holders and financial companies.
• In this research study, the main aim is to detect such frauds, including the
accessibility of public data, high-class imbalance data, the changes in fraud nature,
and high rates of false alarm.
• Later, three architectures based on a convolutional neural network are applied to
improve fraud detection performance. Further addition of layers further increased
the accuracy of detection.
• The proposed approaches can be implemented effectively for the real-world
detection of credit card fraud.
SCOPE
• In the field of CCF detection, several research studies have been carried out.
• This section presents different research studies revolving around CCF detection.
• Many techniques are used to detect credit cards.
• The commonly used payment card authorization process for credit card
authentication.
• There are two ways of authentication including passwords and authentication
through biometrics.
• Biometrics-based authentication can be further divided into three groups:
physiological authentication and behavioral authentication, and combined
authentication.
OBJECTIVE
• In this research study, the main aim is to detect such frauds, including the
accessibility of public data, high-class imbalance data, the changes in fraud nature,
and high rates of false alarm.
• The relevant literature presents many machines learning based approaches for
credit card detection, such as Extreme Learning Method, Decision Tree, Random
Forest, Support Vector Machine, Logistic Regression and XG Boost.
• However, due to low accuracy, there is still a need to apply state of the art deep
learning algorithms to reduce fraud losses.
• The main focus has been to apply the recent development of deep learning
algorithms for this purpose.
• Comparative analysis of both machine learning and deep learning algorithms was
performed to find efficient outcomes.
EXISTING SYSTEM
• The goal of supervised CCF detection is to create a machine learning (ML) model

based on existing transactional credit card payment data.

• The issue involves a variety of fundamental problems, including the system’s quick

reaction time, cost sensitivity, and feature pre-processing.

• To perform a comparative analysis between ML with DL algorithms and proposed

CNN with baseline model, the results prove that the proposed approach

outperforms existing approaches.


DISADVANTAGES

• The class imbalance is the problem in ML where the total number of a class of data

(positive) is far less than the total number of another class of data (negative).

• Therefore, to the best of our knowledge, the problem of class imbalance has not yet

been solved.

• Moreover, we strongly emphasis the research that reported fraud detection in the

problem of class imbalance. Many techniques are used to detect credit cards.
PROPOSED SYSTEM
• The proposed model outperforms the state-of-the-art machine learning and deep
learning algorithms for credit card detection problems.
• In addition, we have performed experiments by balancing the data and applying
deep learning algorithms to minimize the false negative rate.
• The proposed approaches can be implemented effectively for the real-world
detection of credit card fraud.
• To perform a comparative analysis between ML with DL algorithms and proposed
CNN with baseline model, the results prove that the proposed approach
outperforms existing approaches.
• The convolutional neural network model with 14 layers architecture is applied to
the balanced dataset to validate the proposed model.
ADVANTAGES

• The deep learning model is proposed by adding a number of additional layers that

are then used to extract the features and classification from the credit card farad

detection dataset.

• To analyses the performance CNN model, apply different architecture of CNN

layers.

• To perform a comparative analysis between ML with DL algorithms and proposed

CNN with baseline model, the results prove that the proposed approach

outperforms existing approaches.


SYSTEM CONFIGURATION
H/W SYSTEM CONFIGURATION:
• Processor - Intel i3,i5,i7, AMD Processor
• RAM - above 6 GB
• Hard Disk - above 500 GB

S/W SYSTEM CONFIGURATION:


• Operating System - Windows 7/8/10
• Front End - Html,Css
• Scripts - R language
• Tool - Python
CONCLUSION
• CCF is an increasing threat to financial institutions. Fraudsters tend to constantly

come up with new fraud methods.

• A robust classifier can handle the changing nature of fraud.

• The performance of ML methods varies for each individual business case.

• The type of input data is a dominant factor that drives different ML methods.

• The performance on unseen data increased as the class imbalance increased.

• Future work associated may explore the use of more state of art deep learning

methods to improve the performance of the model proposed in this study.

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