CREDIT CARD SECURITY SYSTEM

Credit cards provide a convenient way to handle business transactions such as conference
registration, the purchase of course materials, or the purchase of meals at a campus dining
facility. Acceptance of credit cards is subject to the Payment Card Industry Data Security
Standards for safeguarding cardholder account numbers and other sensitive data. It is also in the
University’s best interest to facilitate the transfer of credit card transaction data to its financial
systems. The purpose of this policy is to establish guidelines for credit card acceptance and
processing. we present a Hidden Markov Model (HMM).Which does not require fraud signatures
and yet is able to detect frauds by considering a cardholder’s spending habit.

Card transaction processing sequence by the stochastic process of an HMM. 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. Hence, we feel that HMM is an ideal choice for
addressing this problem. Another important advantage of the HMM-based approach is a drastic
reduction in the number of False Positives transactions identified as malicious by an FDS
although they are actually genuine. An FDS runs at a credit card issuing bank. Each incoming
transaction is submitted to the FDS for verification. FDS receives the card details and the value
of purchase to verify, whether the transaction is genuine or not. The types of goods that are
bought in that transaction are not known to the FDS.

PROJECT MODULES

 New Card
New cardholder registers his card details, user information and security information. The
security information includes security question answer and some confidential
information. The security question is raised when verification for any transaction is done.

 Login
 The main task of this module is to allow only authorized users to login. Registered
cardholder can only login, registered cardholder can view their profile. Cardholder can
edit their profile. The cardholder can view their transaction details.

 Transaction
Cardholder when buys any product the place of transaction and amount of the transaction
is taken into account for knowing the spending profile of the previous transactions of the
cardholder. New transaction is compared with the spending profile of the previous
transaction and if any abnormality is found then the transaction is sent for verification.

 Verification
In this module security questions are raised for verifying the genuine cardholder. If any
of the security question’s answer is incorrect then the transaction is aborted and the card
is blocked. The cardholder is intimated that his card is blocked.

 Security
Security question and answer for each cardholder is stored in the database.
When the cardholder enters the answers for verification, the answers are
checked with the answers stored in database while registration.

Existing System:

The existing system, the fraud is detected after the fraud is done that is, the fraud is
detected after the complaint of the card holder. And so the card holder faced a lot of trouble
before the investigation finish. And also as all the transaction is maintained in a log, we need to
maintain a huge data. And also now a days lot of online purchase are made so we don’t know the
person how is using the card online, we just capture the IP address for verification purpose. So
there need a help from the cyber crime to investigate the fraud. To avoid the entire above
disadvantage we propose the system to detect the fraud in a best and easy way.

Proposed System:
 In proposed system, we present a Hidden Markov Model (HMM).Which does not
require fraud signatures and yet is able to detect frauds by considering a cardholder’s spending
habit. Card transaction processing sequence by the stochastic process of an HMM. 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. Hence, we feel that HMM is an ideal choice for
addressing this problem. Another important advantage of the HMM-based approach is a drastic
reduction in the number of False Positives transactions identified as malicious by an FDS
although they are actually genuine. An FDS runs at a credit card issuing bank. Each incoming
transaction is submitted to the FDS for verification. FDS receives the card details and the value
of purchase to verify, whether the transaction is genuine or not. The types of goods that are
bought in that transaction are not known to the FDS. It tries to find any anomaly in the
transaction based on the spending profile of the cardholder, shipping address, and billing address,
etc.