Fraud Detection of Credit Card using Data Mining Techniques

A credit card is an essential and daily used component in our life. Credit card fraud is a crime in our society. It causes many problems in our daily online transactions. Various deficiency of the previous method has been researched in the introduction chapter. The establishment of avoiding credit card fraud security is a big issue for small financial institutions. The goal of this paper is to propose a model for detecting credit card fraud and making a false alarm. For this research purpose, we have used four data mining techniques i.e. Decision Tree (DT), Random Forest (RF), Artificial Neural Networks (ANN), and Logistic regression (LR). Our motivation was how to reduce the false alarm so that the cardholder gets…