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Submitted By:
Priyanka Sharma
INTRODUCTION
Credit card Information
The PCI DSS is the security standard issued by The Payment Card Industry Security Standards Council. The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme.
3-D Secure
3-D Secure is an XML-based protocol designed to be an added layer of security for online credit and debit card transactions. It was developed by Visa with the intention of improving the security of Internet payments and offered to customers as the Verified by Visa service. The protocol uses XML messages sent over SSL connections with client authentication. A transaction using Verified by Visa/SecureCode will initiate a redirect to the website of the card issuing bank to authorize the transaction. The Verified by Visa protocol recommends the bank's verification page to load in an inline frame session. In this way, the bank's systems can be held responsible for most security breaches. In its initial form, 3DS would pop up a password entry form to a bank customer who attempted an online card payment; she would enter a password and, if it was correct, would be returned to the merchant website to complete the transaction.
Hidden Markov Model (HMM)-based credit card FDS, which does not require fraud signatures and yet is able to detect frauds by considering a cardholders spending habit. The details of items purchased in individual transactions are usually not known to an FDS running at the bank that issues credit cards to the cardholders. This can be represented as the underlying finite Markov chain, which is not observable.
Hidden Markov Model will be helpful to find out the fraudulent transaction by using spending profiles of user. It works on the user spending profiles which can be divided into major three types such as: Lower profile; Middle profile; and Higher profile. For every credit card, the spending profile is different, so it can figure out an inconsistency of user profile and try to find fraudulent transaction.
Every user represented by specific patterns of set which containing information about last 10 transaction using credit card. The set of information contains spending profile of card holder, money spent in every transaction, the last purchase time, category of purchase etc. In initial stage, model does not have data of last 10 transactions, in that case, model will ask to the cardholder to feed basic information during transaction about the cardholder such as mother name, place of birth, mailing address, email id etc. Due to feeding of information, HMM model acquired relative data of transaction for further verification of transaction on spending profile of cardholder.
As business processing of credit card fraud detection system runs on a credit card issuing bank site or merchant site. Each arriving transaction is submitted to the fraud detection system for verification purpose. The fraud detection system accept the card details such as credit card number, CVV number, card type, expiry date and the amount of items purchase to validate, whether the transaction is genuine or not
If transaction may be concluded as fraudulent transaction then user must enter security information. This information is related with credit card (like account number, security question and answer which are provided at the time of registration). If user entered information will be matched with database information, then transaction will be done securely. Or else user transaction will be terminated and transferred to online shopping website.
Requirements Specifications
Hardware Specification SYSTEM : Pentium IV 2.4 GHz HARD DISK : 120 GB MONITOR : 15 VGA colour RAM : 512 MB
Software Specification Operating system :- Windows XP Professional Front End : - XHTML and CSS Coding Language :- php 4.0 Back-End : - MySql 5.3
RESULTS
Conclusion
Hidden Markov Model (HMM)-based credit card FDS, which does not require fraud signatures and yet is able to detect frauds by considering a cardholders spending habit. The Fraud Detection System is also scalable for handling vast volumes of transactions processing. The HMM based credit card fraud detection system does not takes long time neither has complex process to perform fraud check like the existing system and it gives better and fast result than existing system. The relative studies show that the correctness and effectiveness of the proposed system is secure to 80 percent over a broad deviation in the input data.