International Journal of Computational Intelligence and Information Security, August 2011 Vol. 2, No. 8
Supervised Machine Learning Model for Credit Card Fraud Detection
Manoj Aryal, Prof. Anurag jain and Dr. A.K. Sachan
Deptt. Of Computer science & Engineering, Radharaman Institute of Technology & science,Bhopal-462051, Indiamanoj_aryal_32@yahoo.co.in
Electronic transactions with credit card become more popular mode of payment nowadays such as onlineshopping and banking. Credit card frauds increased with the introduction of latest transaction technologies. Todetect credit card frauds in electronic transactions becomes the focus of risk control of banks. Several researchershave proposed their work for credit card fraud detection. We proposed a binary classification model for creditcard fraud detection. This Binary Classification
model gives the accuracy up to 97% and also reduces the falsealarm rate..
Fraud detection, RBF, Credit card, True Positive
Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar paymentmechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying,or to obtain unauthorized funds from an account . Credit card fraud detection has drawn a lot of researchinterest and a number of techniques, with special emphasis on data mining and neural networks, have beensuggested. Ghosh and Reilly  have proposed credit card fraud detection with a neural network. They havebuilt a detection system, which is trained on a large sample of labeled credit card account transactions. Thesetransactions contain example fraud cases due to lost cards, stolen cards, application fraud, counterfeit fraud,mail-order fraud, and non received issue (NRI) fraud.
1.1 Types of Credit Card Fraud 
Credit fraud can fall into one of five categories:a.
Counterfeit credit cardb.
Lost or Stolen Cardsc.