Using modern methods of the electronic commerce in daily life transactions is increasing because of the
growth and the comfortable access of the people to the internet and social networks. The electronic
payment systems are one of the most important electronic commerce methods and the electronic payment
fraud is a major problem.For example, the credit card fraud loss increases every year and is regarded as
one of the important issues in the credit card institutes and corporations. Therefore, fraud detection is
considered as an important research challenge. Fraud reduction is a complicated process requiring a body
of knowledge in many scientific fields. Based on the kind of the fraud the banks or the credit card institutes
face, different measures may be taken. This paper compares and analyzes the available recent findings on
the credit card fraud detection techniques. The objectives of the present study are first to detect different
credit card and electronic commerce fraud and then to investigate the strategies used for the purpose of
detection.
Financial services industry is developing due to the introduction of internet, rapid technological evolutions, deregulation, globalization as well as the impact of changing competitive and regulatory forces. So Financial system plays an important role in the economic development of the country. Because of the advent of information technology there is a change in the banking sector which has paved way for the introduction of retail electronic payment system and has progressed in the recent years in various countries and India has left no way behind. The objective of the paper is to examine and analyze the progress made by the internet banking in India. Bhawna Bhelly | Dr Sunil "Growth of E-Banking in India" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd25082.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/25082/growth-of-e-banking-in-india/bhawna-bhelly
E-Banking System: Opportunities and Challenges – A StudyRHIMRJ Journal
E-Banking Service in India is still in the emerging stages of growth and development. Competition and changes in
technology have changed the face of Banking. The changes that have taken place impose on banks tough standards of
competition and compliance. E-banking is the use of computer system to retrieve and process banking data and information to
initiate transactions directly with a bank via a telecommunication network. In other words-banking is the wave of future. E
Banking is likely to bring golden opportunities as well as poses new challenges for authorities in regulating and supervising
the financial system and in designing and implementing the macroeconomic policy. This research paper aims to represent EBanking
System in India.
I completed a Seminar project.
My research is based on Seconday data.
I did a thoroughly research on the awareness of E-banking services amongst indian customers.
The objectives of my research are:
1) To study about the role, need, types, frauds, impact of Internet banking on banks, customers and society, various frauds and ways to overcome them in internet banking, services offered by internet banking and its benefit to the customers and banks.
2) To study about the future perspective and awareness of internet banking among Indian customers and ways to increase awareness among the customers.
Financial services industry is developing due to the introduction of internet, rapid technological evolutions, deregulation, globalization as well as the impact of changing competitive and regulatory forces. So Financial system plays an important role in the economic development of the country. Because of the advent of information technology there is a change in the banking sector which has paved way for the introduction of retail electronic payment system and has progressed in the recent years in various countries and India has left no way behind. The objective of the paper is to examine and analyze the progress made by the internet banking in India. Bhawna Bhelly | Dr Sunil "Growth of E-Banking in India" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd25082.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/25082/growth-of-e-banking-in-india/bhawna-bhelly
E-Banking System: Opportunities and Challenges – A StudyRHIMRJ Journal
E-Banking Service in India is still in the emerging stages of growth and development. Competition and changes in
technology have changed the face of Banking. The changes that have taken place impose on banks tough standards of
competition and compliance. E-banking is the use of computer system to retrieve and process banking data and information to
initiate transactions directly with a bank via a telecommunication network. In other words-banking is the wave of future. E
Banking is likely to bring golden opportunities as well as poses new challenges for authorities in regulating and supervising
the financial system and in designing and implementing the macroeconomic policy. This research paper aims to represent EBanking
System in India.
I completed a Seminar project.
My research is based on Seconday data.
I did a thoroughly research on the awareness of E-banking services amongst indian customers.
The objectives of my research are:
1) To study about the role, need, types, frauds, impact of Internet banking on banks, customers and society, various frauds and ways to overcome them in internet banking, services offered by internet banking and its benefit to the customers and banks.
2) To study about the future perspective and awareness of internet banking among Indian customers and ways to increase awareness among the customers.
E-Payment System on E-Commerce in IndiaIJERA Editor
E-commerce provides the capability of buying and selling products, information and services on the Internet and other online environments. In an e-commerce environment, payments take the form of money exchange in an electronic form, and are therefore called Electronic Payment. E-Payment system is secure there should be no threat to the user credit card number, smart card or other personal detail, payment can be carried out without involvement of third party, It makes E payment at any time through the internet directly to the transfer settlement and form E-business environment. Studied have been carried out on E-Payment system .E-Payment system an integral part of electronic commerce.An efficient payments system reduces the cost of exchanging goods and services, and is indispensable to the functioning of the interbank, money, and capital markets. Questions are related to E-Payment system in which given options are Agree, Disagree, Strongly disagree, Strongly agree, Neutral. After analysis and comparison of various modes of electronic payment systems, it is revealed that it is quite difficult, if not impossible, to suggest that which payment system is best. Some systems are quite similar, and differ only in some minor details. Thus there are number of factors which affect the usage of e-commerce payment systems. Among all these user base is most important success of e-commerce payment systems also depends on consumer preferences, ease of use, cost, industry agreement, authorization, security, authentication, non-refutability, accessibility and reliability and anonymity and public policy
I HAVE DONE A PROJECT ON ONLINE BANKING IN INDIA WITH RBI GUIDLINES AND IMPLEMENTATION OF ONLINE BANKING IN INDIA WITH BOTH PRIMARY AND SECONDARY DATA ANALYSIS.
Awareness about E banking among indian consumers pptAnurag Singh
This is a power-point presentation of E banking research report
My research is based on Seconday data.
I did a thoroughly research on the awareness of E-banking services amongst indian customers.
The objectives of my research are:
1) To study about the role, need, types, frauds, impact of Internet banking on banks, customers and society, various frauds and ways to overcome them in internet banking, services offered by internet banking and its benefit to the customers and banks.
2) To study about the future perspective and awareness of internet banking among Indian customers and ways to increase awareness among the customers.
Survey on Credit Card Fraud Detection Using Different Data Mining Techniquesijsrd.com
In today's world of e-commerce, credit card payment is the most popular and most important mean of payment due to fast technology. As the usage of credit card has increased the number of fraud transaction is also increasing. Credit card fraud is very serious and growing problem throughout the world. This paper represents the survey of various fraud detection techniques through which fraud can be detected. Although there are serious fraud detection technology exits based on data mining, knowledge discovery but they are not capable to detect the fraud at a time when fraudulent transaction are in progress so two techniques Neural Network and Hidden Markov Model(HMM) are capable to detect the fraudulent transaction is in progress. HMM categorizes card holder profile as low, medium, and high spending on their spending behavior. A set of probability is assigned to each cardholder for amount of transaction. The amount of incoming transaction is matched with cardholder previous transaction, if it is justified a predefined threshold value then a transaction is considered as a legitimate else it is considered as a fraud.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology.
E-Payment System on E-Commerce in IndiaIJERA Editor
E-commerce provides the capability of buying and selling products, information and services on the Internet and other online environments. In an e-commerce environment, payments take the form of money exchange in an electronic form, and are therefore called Electronic Payment. E-Payment system is secure there should be no threat to the user credit card number, smart card or other personal detail, payment can be carried out without involvement of third party, It makes E payment at any time through the internet directly to the transfer settlement and form E-business environment. Studied have been carried out on E-Payment system .E-Payment system an integral part of electronic commerce.An efficient payments system reduces the cost of exchanging goods and services, and is indispensable to the functioning of the interbank, money, and capital markets. Questions are related to E-Payment system in which given options are Agree, Disagree, Strongly disagree, Strongly agree, Neutral. After analysis and comparison of various modes of electronic payment systems, it is revealed that it is quite difficult, if not impossible, to suggest that which payment system is best. Some systems are quite similar, and differ only in some minor details. Thus there are number of factors which affect the usage of e-commerce payment systems. Among all these user base is most important success of e-commerce payment systems also depends on consumer preferences, ease of use, cost, industry agreement, authorization, security, authentication, non-refutability, accessibility and reliability and anonymity and public policy
I HAVE DONE A PROJECT ON ONLINE BANKING IN INDIA WITH RBI GUIDLINES AND IMPLEMENTATION OF ONLINE BANKING IN INDIA WITH BOTH PRIMARY AND SECONDARY DATA ANALYSIS.
Awareness about E banking among indian consumers pptAnurag Singh
This is a power-point presentation of E banking research report
My research is based on Seconday data.
I did a thoroughly research on the awareness of E-banking services amongst indian customers.
The objectives of my research are:
1) To study about the role, need, types, frauds, impact of Internet banking on banks, customers and society, various frauds and ways to overcome them in internet banking, services offered by internet banking and its benefit to the customers and banks.
2) To study about the future perspective and awareness of internet banking among Indian customers and ways to increase awareness among the customers.
Survey on Credit Card Fraud Detection Using Different Data Mining Techniquesijsrd.com
In today's world of e-commerce, credit card payment is the most popular and most important mean of payment due to fast technology. As the usage of credit card has increased the number of fraud transaction is also increasing. Credit card fraud is very serious and growing problem throughout the world. This paper represents the survey of various fraud detection techniques through which fraud can be detected. Although there are serious fraud detection technology exits based on data mining, knowledge discovery but they are not capable to detect the fraud at a time when fraudulent transaction are in progress so two techniques Neural Network and Hidden Markov Model(HMM) are capable to detect the fraudulent transaction is in progress. HMM categorizes card holder profile as low, medium, and high spending on their spending behavior. A set of probability is assigned to each cardholder for amount of transaction. The amount of incoming transaction is matched with cardholder previous transaction, if it is justified a predefined threshold value then a transaction is considered as a legitimate else it is considered as a fraud.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology.
An overview of plastic card frauds and solutions for avoiding fraudster trans...eSAT Journals
Abstract Payment card fraud is causing billions of dollars in losses for the card payment industry. Besides direct losses, the brand name can be affected by loss of consumer confidence due to the fraud. As a result of these growing losses, financial institutions and card issuers are continually seeking new techniques and innovation in payment card fraud detection and prevention. Credit card fraud falls broadly into two categories: behavioral fraud and application fraud. Credit card transactions continue to grow in number, taking an ever-larger share of the US payment system and leading to a higher rate of stolen account numbers and subsequent losses by banks. Improved fraud detection thus has become essential to maintain the viability of the US payment system. Increasingly, the card not present scenario, such as shopping on the internet poses a greater threat as the merchant (the web site) is no longer protected with advantages of physical verification such as signature check, photo identification, etc. In fact, it is almost impossible to perform any of the ‘physical world’ checks necessary to detect who is at the other end of the transaction. This makes the internet extremely attractive to fraud perpetrators. According to a recent survey, the rate at which internet fraud occurs is 20 to25 times higher than ‘physical world’ fraud. However, recent technical developments are showing some promise to check fraud in the card not present scenario. This paper provides an overview of payment card fraud and begins with payment card statistics and the definition of payment card fraud. It also describes various methods used by identity thieves to obtain personal and financial information for the purpose of payment card fraud. In addition, relationship between payment card fraud detection is provided. Finally, some solutions for detecting payment card fraud are also given. Index Terms: Online Frauds, Fraudsters, card fraud, CNP, CVV, AVS
Credit Cards Frauds and Cybersecurity Threats Machine Learning Detection Algo...ijtsrd
Credit and Debit cards have become the choice mode of payment online as a result of the proliferation of electronic transactions and advancement in Information and Communication Technology ICT . Because of the increased use of credit cards for payment online, the number of fraud cases associated with it has also increased scammers and fraudsters are stealing credit card information of victims online and thereby stealing their monies. There is the need therefore to stop or abate these frauds using very powerful fraud detection system that detects patterns of credit card frauds in order to prevent it from occurring. In this paper we x rayed the concept of credit card frauds and how they are carried out by fraudsters. Python 3.7.6 programming language, Jupyter Notebook 6.0.3 and Anaconda Navigator 1.9.12 were used as experimental test bed. Also, we implemented two different supervised machine learning algorithms on an imbalanced dataset such as Decision Tree and Random forest techniques. A comparative analysis of the credit card detection capabilities of these machine learning algorithms were carried out to ascertain the best detection algorithm using different performance evaluation metrics such as accuracy, precision, recall, f1 score, confusion matrix. Experimental results showed that Random Forest outperformed Decision Tree algorithm slightly in performance metrics used for performance evaluation. Obodoeze Fidelis C. | Oliver Ifeoma Catherine | Onyemachi George Olisamaka | Udeh Ifeanyi Frank Gideon | Obiokafor, Ifeyinwa Nkemdilim "Credit Cards Frauds and Cybersecurity Threats: Machine Learning Detection Algorithms as Countermeasures" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-7 , December 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52440.pdf Paper URL: https://www.ijtsrd.com/computer-science/computer-security/52440/credit-cards-frauds-and-cybersecurity-threats-machine-learning-detection-algorithms-as-countermeasures/obodoeze-fidelis-c
The credit card has become the most popular mode of payment for both online as well as
regular purchase, in cases of fraud associated with it are also rising. Credit card frauds are increasing
day by day regardless of the various techniques developed for its detection. Fraudsters are so expert that
they generate new ways for committing fraudulent transactions each day which demands constant
innovation for its detection techniques. Most of the techniques based on Artificial Intelligence, Fuzzy
logic, neural network, logistic regression, naïve Bayesian, Machine learning, Sequence Alignment,
decision tree, Bayesian network, meta learning, Genetic Programming etc., these are evolved in
detecting various credit card fraudulent transactions. This paper presents a survey of various techniques
used in credit card fraud detection mechanisms.
Explore our students' project on detecting credit card fraud using advanced analytics techniques. This project utilizes machine learning algorithms to analyze transaction data and identify fraudulent patterns, offering valuable insights for financial institutions. Gain insights into fraud detection strategies and the impact of technology on financial security. To learn more, do check out https://bostoninstituteofanalytics.org/data-science-and-artificial-intelligence/.
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
An Enhanced Automated Teller Machine Security Prototype using Fingerprint Bio...Eswar Publications
The steady growth in electronic transactions has promoted the Automated Teller Machine (ATM) thereby making it the main transaction channel for carrying out financial transactions. However, this has also increased the amount of fraudulent activities carried out on Automated Teller Machines (ATMs) thereby calling for efficient security mechanisms and increasing the demand for fast and accurate user identification and
authentication in ATMs. This research analyses, designs and proposes a biometric authentication prototype for integrating fingerprint security with ATMs as an added layer of security. A fingerprint biometric technique was fused with personal identification numbers (PIN's) for authentication to ameliorate the security level. The prototype was simulated using a fingerprint scanner and Java Platform Enterprise Edition was used to develop an ATM application which was used to synchronize with a fingerprint scanner thereby providing a biometric authentication scheme for carrying out transactions on an ATM.
Problem Reduction in Online Payment System Using Hybrid ModelIJMIT JOURNAL
Online auction, shopping, electronic billing etc. all such types of application involves problems of fraudulent transactions. Online fraud occurrence and its detection is one of the challenging fields for web development and online phantom transaction. As no-secure specification of online frauds is in research database, so the techniques to evaluate and stop them are also in study. We are providing an approach with Hidden Markov Model (HMM) and mobile implicit authentication to find whether the user interacting online is a fraud or not. We propose a model based on these approaches to counter the occurred fraud and prevent the loss of the customer. Our technique is more parameterized than traditional approaches and so, chances of detecting legitimate user as a fraud will reduce.
A review on techniques and modelling methodologies used for checking electrom...nooriasukmaningtyas
The proper function of the integrated circuit (IC) in an inhibiting electromagnetic environment has always been a serious concern throughout the decades of revolution in the world of electronics, from disjunct devices to today’s integrated circuit technology, where billions of transistors are combined on a single chip. The automotive industry and smart vehicles in particular, are confronting design issues such as being prone to electromagnetic interference (EMI). Electronic control devices calculate incorrect outputs because of EMI and sensors give misleading values which can prove fatal in case of automotives. In this paper, the authors have non exhaustively tried to review research work concerned with the investigation of EMI in ICs and prediction of this EMI using various modelling methodologies and measurement setups.
Understanding Inductive Bias in Machine LearningSUTEJAS
This presentation explores the concept of inductive bias in machine learning. It explains how algorithms come with built-in assumptions and preferences that guide the learning process. You'll learn about the different types of inductive bias and how they can impact the performance and generalizability of machine learning models.
The presentation also covers the positive and negative aspects of inductive bias, along with strategies for mitigating potential drawbacks. We'll explore examples of how bias manifests in algorithms like neural networks and decision trees.
By understanding inductive bias, you can gain valuable insights into how machine learning models work and make informed decisions when building and deploying them.
Online aptitude test management system project report.pdfKamal Acharya
The purpose of on-line aptitude test system is to take online test in an efficient manner and no time wasting for checking the paper. The main objective of on-line aptitude test system is to efficiently evaluate the candidate thoroughly through a fully automated system that not only saves lot of time but also gives fast results. For students they give papers according to their convenience and time and there is no need of using extra thing like paper, pen etc. This can be used in educational institutions as well as in corporate world. Can be used anywhere any time as it is a web based application (user Location doesn’t matter). No restriction that examiner has to be present when the candidate takes the test.
Every time when lecturers/professors need to conduct examinations they have to sit down think about the questions and then create a whole new set of questions for each and every exam. In some cases the professor may want to give an open book online exam that is the student can take the exam any time anywhere, but the student might have to answer the questions in a limited time period. The professor may want to change the sequence of questions for every student. The problem that a student has is whenever a date for the exam is declared the student has to take it and there is no way he can take it at some other time. This project will create an interface for the examiner to create and store questions in a repository. It will also create an interface for the student to take examinations at his convenience and the questions and/or exams may be timed. Thereby creating an application which can be used by examiners and examinee’s simultaneously.
Examination System is very useful for Teachers/Professors. As in the teaching profession, you are responsible for writing question papers. In the conventional method, you write the question paper on paper, keep question papers separate from answers and all this information you have to keep in a locker to avoid unauthorized access. Using the Examination System you can create a question paper and everything will be written to a single exam file in encrypted format. You can set the General and Administrator password to avoid unauthorized access to your question paper. Every time you start the examination, the program shuffles all the questions and selects them randomly from the database, which reduces the chances of memorizing the questions.
KuberTENes Birthday Bash Guadalajara - K8sGPT first impressionsVictor Morales
K8sGPT is a tool that analyzes and diagnoses Kubernetes clusters. This presentation was used to share the requirements and dependencies to deploy K8sGPT in a local environment.
Literature Review Basics and Understanding Reference Management.pptxDr Ramhari Poudyal
Three-day training on academic research focuses on analytical tools at United Technical College, supported by the University Grant Commission, Nepal. 24-26 May 2024
NO1 Uk best vashikaran specialist in delhi vashikaran baba near me online vas...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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HEAP SORT ILLUSTRATED WITH HEAPIFY, BUILD HEAP FOR DYNAMIC ARRAYS.
Heap sort is a comparison-based sorting technique based on Binary Heap data structure. It is similar to the selection sort where we first find the minimum element and place the minimum element at the beginning. Repeat the same process for the remaining elements.
NUMERICAL SIMULATIONS OF HEAT AND MASS TRANSFER IN CONDENSING HEAT EXCHANGERS...ssuser7dcef0
Power plants release a large amount of water vapor into the
atmosphere through the stack. The flue gas can be a potential
source for obtaining much needed cooling water for a power
plant. If a power plant could recover and reuse a portion of this
moisture, it could reduce its total cooling water intake
requirement. One of the most practical way to recover water
from flue gas is to use a condensing heat exchanger. The power
plant could also recover latent heat due to condensation as well
as sensible heat due to lowering the flue gas exit temperature.
Additionally, harmful acids released from the stack can be
reduced in a condensing heat exchanger by acid condensation. reduced in a condensing heat exchanger by acid condensation.
Condensation of vapors in flue gas is a complicated
phenomenon since heat and mass transfer of water vapor and
various acids simultaneously occur in the presence of noncondensable
gases such as nitrogen and oxygen. Design of a
condenser depends on the knowledge and understanding of the
heat and mass transfer processes. A computer program for
numerical simulations of water (H2O) and sulfuric acid (H2SO4)
condensation in a flue gas condensing heat exchanger was
developed using MATLAB. Governing equations based on
mass and energy balances for the system were derived to
predict variables such as flue gas exit temperature, cooling
water outlet temperature, mole fraction and condensation rates
of water and sulfuric acid vapors. The equations were solved
using an iterative solution technique with calculations of heat
and mass transfer coefficients and physical properties.
bank management system in java and mysql report1.pdf
AN OVERVIEW OF THE BANK FRAUD AND ITS DETECTION TECHNIQUES THROUGH DATA MINING
1. International Journal of Mobile Network Communications & Telematics ( IJMNCT) Vol.7, No.3, June 2017
DOI : 10.5121/ijmnct.2017.7301 1
AN OVERVIEW OF THE BANK FRAUD AND ITS
DETECTION TECHNIQUES THROUGH DATA
MINING
SeyyedHedayatTarighiNejad1
and MohammadNikbakht2
and Mohammad
HosseinAfrakhteh2
1
Faculty of Engineering, Islamic Azad University, Yasuj Branch
2
Keshavarzi Bank Staff Management, Kohgiluyeh and Boyer-Ahmad Province
ABSTRACT
Using modern methods of the electronic commerce in daily life transactions is increasing because of the
growth and the comfortable access of the people to the internet and social networks. The electronic
payment systems are one of the most important electronic commerce methods and the electronic payment
fraud is a major problem.For example, the credit card fraud loss increases every year and is regarded as
one of the important issues in the credit card institutes and corporations. Therefore, fraud detection is
considered as an important research challenge. Fraud reduction is a complicated process requiring a body
of knowledge in many scientific fields. Based on the kind of the fraud the banks or the credit card institutes
face, different measures may be taken. This paper compares and analyzes the available recent findings on
the credit card fraud detection techniques. The objectives of the present study are first to detect different
credit card and electronic commerce fraud and then to investigate the strategies used for the purpose of
detection.
KEYWORDS
credit card fraud, fraud detection, data mining techniques, electronic commerce, decision tree, electronic
payment systems
1. INTRODUCTION
• The contemporary era has been called the era of information and it is the information
which leads to power and success. Owing to the today’s complex technologies such as
computers, satellites, and the means for information storage, one can collect and store
different data and use the computers to arrange the bulk of information. Unfortunately,
the large bulk of the stored data on different computers quickly became cumbersome.
This chaos led to the creation of the organized data bases and data base management
systems [1].
• The technology growth and development have provided the possibility of committing
fraud in different fields such as banks, insurance companies, security fraud, goods fraud,
and the other fields for the profiteers [2].
• Fraud is a purposeful action for illegally gaining financial benefits which is against the
typical laws, regulations, and policies. The banking fraud in banks and financial institutes
has become a serious problem in the recent years and attracted much attention and
concern. It is of critical significance to detect the financial fraud in order to prevent the
subsequent devastating consequences [3].
2. ELECTRONIC BANKING
The electronic banking refers to all banking and financial services which are electronically
offered to the customers; it is completely core and person-to-person/online. In other words, the
electronic banking is composed of the integrated systems offering all bank products and services
2. International Journal of Mobile Network Communications & Telematics ( IJMNCT) Vol.7, No.3, June 2017
2
as well as the strategic operations and their management through electronic equipment to the core
data base in the form of a system [4].
3. KINDS OF THE CREDIT CARD FRAUD
The criminals commit the credit card fraud in different ways. As the technology changes, the
criminals change their method as well. Different classifications of the credit card fraud can be
presented based on the different viewpoints [5].
For example, as in [6],regarding the fact that whether the fraud is committed inside or outside the
organization, it is classified to two categories of intra-organizational and extra-organizational
fraud [7].
The definitions and techniques of this kind of fraud are explained in the present paper.
3.1. BANKRUPTCY FRAUD
The detection of the bankruptcy fraud is one of the most difficult ones. However, there are some
techniques to prevent it. The bankruptcy fraud means to use a card whose owner cannot repay the
debts. In other words, the individuals used the cards for purchase since they know that they
cannot repay their debts. The bank sends them the bill. Nevertheless, they have declared to be
bankrupt, have an irrecoverable debt, and the bank has to repay the debt itself. The only way to
prevent this kind of fraud is to investigate the customers’ banking and credit status by the credit
rating agencies so as to know their financial status [7].
3.2. LOST OR STOLEN CREDIT CARDS
The lost or stolen credit card is a card whose owner loses after receiving it or a person steals it for
an evil purpose and uses it until it is expired. This is the easiest way for the fraudsters to receive a
credit card without spending any money for buying a special technology. This is an old way of
credit card fraud and is more difficult to detect and deal with, compared to the other methods.
3.3. THE REQUEST FRAUD
This kind of fraud is committed when a person gives the incorrect information and requests a
credit card. This is done in the three following ways:
False Identity
It happens when a person illegally obtains the personal information of a person and requests to
open a bank account.
Financial Fraud
It happens when a person gives incorrect information regarding his financial status while opening
a bank account.
Non-delivery of the Post Package
It happens when the posted credit card is stolen before it is delivered to the realowner.
3.4. THE ACCOUNT CONTROL
This kind of fraud happens when a criminal illegally obtains the personal information of a person
and controls the legal account of that person by having his account number or the credit card
number. Then, he calls the bank as the real person or the card issuer and informs them of a change
in the postal address; after a while, he announces that the card has been stolen and requests a new
card [7].
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3.5. CREDIT CARD FORGERY
Forgery, theft, and loss are the major threats for the credit cards. The criminals constantly
innovate new ways to forge the credit cards. Some methods used for the credit card forgery are
explained below:
3.5.1. Erasing the Magnetic Stripe
A criminal can manipulate the illegally obtained card by erasing the magnetic stripe with a strong
magnetic field. Then, he changes the card information in a way that would be consistent with a
legal card whose information he has already obtained. The bank cashier puts the credit card in the
card reader for several times, does not know that the magnetic stripe has been erased, and finally
has to manually enter the card information to the card reader. This kind of fraud is very dangerous
since the cashier meticulously examines the card while trying to read the card number. Card
manipulationis among the old methods for the credit card fraud used to illegally gain money and
wealth [7].
3.5.2. Making Fake Credit Cards
A criminal is able to make a fake credit card by using the appropriate tools. This is a common
way in committing fraud though making a fake credit card requires a great deal of effort and skill.
The new credit cards have a very large amount of secure information making it difficult to forge
them. It is very difficult to precisely forge the card holograms. One of the other difficulties in
forging a card is indenting the holograms on which [7].
3.5.3. Changing The Card Information
A criminal is able to change the information that the legal card maker has carved on the credit
card by means of heat and pressure. He can also recode the credit card magnetic stripe by using
the computer software.
3.5.4. Copying
Most of the credit card forgery methods are done through copying. In this process, the main data
of a credit card magnetic stripe are electronically copied and written on another credit card. The
instruments for doing this job are the small and portable magnetic stripe reader electronic
machines which operate by a battery [7]. The fraudsters do this while the customers are waiting
for the electronic transaction confirmation by the card reader machine. This is done without the
card holder’s awareness. Therefore, it is difficult to detect and trace. The obtained information
can be used in places where one does not need the credit card to buy goods (online/postal orders).
In most of the cases, the card holder does not become aware of the issue until receiving the bill at
the end of the period.
3.5.5. White Card
It is a plastic card with the same size of a credit card including the main data of alegal card
magnetic stripe which is used for fake transactions. This card is used in places where the approval
and permission of the card reader are not needed (like gas stations and ATMs).
3.5.6. The Seller’s Collusion
This kind of fraud happens when the store owner or his employees are going to abuse the
customers’ account information and may give the information to the profiteers and fraudsters.
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3.5.7. Online Fraud
Because the internet has broken the geographical borders in today's world, plays a significant role
in the peoples’ daily life, and most of the peoples’ needs and purchase are done through the
internet, the grounds for committing other kinds of fraud has been provided for the fraudsters and
criminals. Some online fraud methods are explained in the following.
3.5.7.1. Making A Similar Website
In this method, the fraudsters simulate all or the shopping form page of a reputable website;
therefore, the customers have no reason to suspect it because of the great similarity. The fake
website receives the customers’ shopping orders like the original website and sends them through
email. As such, the fraudsters receive the necessary information for the credit cards’ fraud and
abuse and the customers do not understand.
3.5.7.2. The Fake Sale Website
In this method, the fraudsters run a website and offer some products with a very high discount
and sending before any prepayment. This website may be seemingly an auction or a legal sale
website. The customers enter their information such as name, address, and the credit card
information in the shopping form while they are going to buy goods. Having accessed the
information, the criminals buy goods from the legal websites. Therefore, they will be able to buy
a large bulk of goods with the stolen credit card numbers or sell the obtained information for
other criminal conducts [7].
3.5.7.3. Credit Card Generator
They are the computer programs which can generate credit card numbers and valid expiry dates.
Using the legal credit card numbers, these generators can achieve the algorithm the card issuer
uses for producing credit card numbers and generate a list of the valid numbers. These generators
help their users to generate numbers for different kinds of credit cards like Visa and MasterCard
[7].
4. DIFFERENT KINDS OF FRAUD IN THE REALM OF ELECTRONIC BANKING
The attack approaches are extensively divided into two categories based on the model of the
attacks:
4.1. ABUSE DETECTION
Abuse detection means that a set of the intrusive rules are stored in a base and all available
transactions and data are tested with these rules; each transaction or data following these rules is
identified as a fraudulent activity. The computer anti-viruses operate through this method such
that they have a data base engaged in subversive activities. They constantly compare the intra-
computer activities with these activities and in the case of consistency, they are detected as
subversive activities. In fact, this is the detection and understanding of the previous activities so
as to predict and detect the subsequent activities. These methods are usually very precise but have
a major shortcoming. The major shortcoming is that they are not able to predict the new
subversive and fraudulent activities since they do not have access to their rules [8].
4.2. ANOMALY DETECTION
Contrary to the previous technique, the rules of intrusion are not known in this technique such
that the activities which are greatly deviated from the usual activities based on the available data
are detected as subversive and fraudulent activities. In fact, the fraud patterns are not known in
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this technique and the new fraud patterns can be discovered by the means of data. There are not
special rules related to the fraudulent data and transactions in this technique. Therefore, the extent
of the deviation of any data from the normal extent is calculated and if it is a large deviation, the
data or the transaction is identified as a fraud. The major problem of this technique is that the
customers’ usual transactions and activities are sometimes considered as fraud. For example,
some activities in the banking data base such as the large number of the different accounts of a
single customer, the transactions with small values from lots of different accounts, a very large
amount of the payment transactions in a specific account, and the increased failure in the number
of the times the password is entered are considered as the fraudulent activities before the fraud is
committed. Hence, these customers’ behaviors can be considered as suspicious and regarded as
fraud activities as soon as they are repeated [8].
5. DATA MINING
Data mining or discovering knowledge from data base is the inconspicuous extraction of the
useful potential information from the data which were already unknown. In fact, data mining is
the discovery of noticeable, unexpected, and valuable structures from a set of large amounts of
data; it is an activity basically dealing with statistics and precise data analysis [9]. Some of the
data mining techniques are explained below to discover the bank fraud.
6. THE INTRODUCED FRAUD DETECTION TECHNIQUES
Two important steps for coping with fraud are prevention and detection. Selecting PINs for the
credit cards and using immunization protocols like SSL are applied in the prevention step; fraud
detection instruments are used in the detection step. There are different instruments for fraud
detection and most of the algorithms applied in which include machine learning or more
especially data mining [8]. Data mining techniques are divided into two general categories:
supervised and unsupervised [10]. In the supervised technique, the fraudulent or legal transactions
are predicted based on the transactions whose type (fraudulent or legal) has been already
determined. In fact, the discovery process is done with the help of the fraudsters’ data, modeling
their work, and classification of the fraud activities. However, the available structures in the data
are automatically discovered without any supervision in the unsupervised technique. In fact, this
technique is used to show the outlier data and the unusual transactions to detect the fraudsters’
transactions. Some of the fraud detection data mining and statistical techniques will be explained
in the following [10].
6.1. RULE-BASED DATA MINING
It is an unsupervised technique seeking to create the “if-then” rules with pattern learning and
dependency between the available data so that it can reply to a new request for fraud detection by
referring to the created rules [8]. For example, the rule-based technique has been used in [6] for
the purpose of fraud detection. The introduced system has been implemented in five stages. In the
first stage, the rules are randomly made with the help of the Apriori associative algorithm, then, in
the second stage, the rules are exerted on the set of the legal transaction data and any rule which
is consistent with the available data is excluded. In the third stage, the other rules are applied in
the real system for leading and any rule which does not indicate any irregularity will be excluded.
In the fourth stage, the selected rules are randomly implemented on the data set; in the final stage,
the successful set of rules is used for fraud detection and the results will be used afterward.
6.2. DECISION TREE
It is one of the supervised techniques, makes a decision tree, and facilitates the decision-making
process for fraud detection with regard to the illustration of the fraudulent and legal branches.
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This technique has various applications [8].For instance, a decision tree algorithm named C4.5
has been utilized for the credit cards. This method uses weighted classification, takes the output
middle limit, and leads to better results compared to the classification algorithm which only uses
the exponential weight average [8].
6.3. NEURAL NETWORK
It is a supervised technique inspired by the human’s neural network system for sending a message
[8]. A neural network-based method on the parallel machines to facilitate rule production for the
credit card fraud detection has been proposed in [11].
6.4. BAYESIAN NETWORKS
Bayesian networks are one of the other classification methods. In these methods, the prior
probability of the classes is calculated based on the previous transactions. For each of the
attributes, the effectiveness chance for determining a transaction class is calculated. By the
entrance of the new transactions, the previous probabilities are added based on the attributes and
the maximum value determines the transaction class. A very large amount of algorithms has been
implemented based on the Bayesian networks principles [8]. This method has been used in [12,
13, 14, 15, 16, and 17].
6.5. CLUSTERING
It is one of the unsupervised techniques and makes it feasible to interpret the hidden patterns
among the data through grouping or clustering the transactions [8]. The objective of clustering is
to classify the data into different groups in order to become aware of the signs present among the
data in each group and identify the behavioral patterns.
6.6. STATISTICAL METHODS
These methods are not among the machine learning methods, but they are appropriate instruments
for fraud detection with regard to the possibility of competition with data mining methods in
some applications. For instance, the least squares regression and the predictor stepwise selection
have been used in [18] to indicate that the standard statistical methods can compete. The
introduced method has had three useful results. First, it organizes the calculations to moderate the
interactions. Second, it uses a modern decision-making status to select the predictors; finally, the
needed values for adjusting the dispersed data are carefully selected [8].
6.7. FUZZY LOGIC
It is one of the methods used in both of the supervised and unsupervised methods. For example,
the fuzzy clustering algorithm is one kind of the unsupervised algorithms. Moreover, the fuzzy
phenomenon is used for categorization and fraud detection.
6.8. ARTIFICIAL IMMUNE SYSTEM
It is a supervised technique and its design has inspired from the human’s body immune system.
The artificial immune system algorithm has been used in [19] for fraud detection. In this system,
the familiar cells are distinguished from the unfamiliarones.This method operates in a way that
produces some discoverers which are resistant to the familiar cells and detect the unfamiliar ones.
This system is of two significant characteristics which can be efficient in fraud detection. First, it
does not need the unfamiliar cells at the beginning. Second, it is an adaptive system and will be
able to detect and record different kinds of the new outsider cells in time.
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6.9. GENETIC ALGORITHMS
The previous techniques lead to desirable results for different kinds of the data. In most of them,
fraud detection is done on the basis of calculating the distance or the surrounding data
compression. However, they are not very efficient in a set of a very large amount of data with
large sizes; that is because neighborhood and locality in the dispersed data are more difficult and
complicated and need special methods. The idea of the genetic algorithm has been shaped based
on Darwin's theory of evolution [7]. This theory has proven that when the resources are limited in
nature, different species compete with each other to obtain them; it is only the strong species that
can survive. The winner species start mating and reproduction and better species are born. In
reality, nature is a system of selection and optimization. The same concepts have been used in
genetic algorithms. The solutions to the problems are the species which are specified by a score of
efficiency and adjustment. The most efficient solutions are selected to create better solutions.
Then, the superior solutions are combined with each other and reorganized. This process
continues until an optimal solution is achieved [7]. This method has been used in [20].
7. CONCLUSION
As previously mentioned, the fraud growth is observed in today's life. When a new fraud
technique is made, different methods are simultaneously introduced and implemented to cope
with it. This paper investigated the data mining algorithms including the rule-based data mining,
decision tree, neural networks, Bayesian networks, clustering, statistical methods, fuzzy logic,
artificial immune system, and genetic algorithms. The results indicate that using combined
methods like classification leads to an improvement in the results in terms of the criteria such as
detection precision, detection pace, and detection cost. Applying the merits of the algorithms
along with each other can be regarded as the main reason for the improvement and satisfaction.
Selecting appropriate algorithms to combine is the major challenge which is strongly dependent
on the kind of the applied data.
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