Fraud Detection

1.SYNOPSIS
Project Title: Fraud Detection

Internal Guide: Prof. Dumbre. S. A

Technical Keywords: Data mining, Fraud Detection.

1.1 Relevant Objectives

The basic goal for most fraud examinations is to determine whether fraud
occurred, and if so, who perpetrated it. A particular engagement may, however, have
additional goals, such as to establish and secure evidence to be used in a criminal or other
disciplinary action or to provide proof to recover losses from an insurer (2017 Fraud
Examiners Manual). The objective in an audit of financial statements is to determine
whether they are free of material misstatement, regardless of whether that misstatement is
intentional or not; in other words, a fraud examiner’s priority is proving the nature and
extent of a particular fraud, but an auditor’s focus is detecting material misstatements.
Implicit in this difference are several other naturally resulting differences related to
scope, methodology and professional standards, and the relationship to stakeholders.

1.2 Motivation
The basic approach to fraud detection with an analytic model is to identify
possible predictors of fraud associated with known fraudsters and their actions in the past.
The most powerful fraud models (like the most powerful customer response models) are
built on historical data. If the fraud response can be identified, it can be used to
characterize the behavior of the fraudster in the specific fraud act and in historical data.

1.3 Hypothesis
Technology advancements have come with the risk of internet-related fraud. Fraud
in organizations has led to the loss of revenue, which has increased the demand for fraud
detection analytics. Fraud detection analytics enable organizations to detect fraudulent
activities early enough to prevent further occurrence of such activities or reduce the
associated loss. This article will provide an overview of fraud detection analytics and
explain why it is important in the tech industry. It will also take you through the fraud
analytics methods and give you some tips for building a reliable fraud detection solution.

1.4 Hardware used:

 Laptop i3 – i5
 Mobile Phone

1.5 Software Used:

 Android studio,

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Institute of Technology, Pune – 28 Department of Computer Engineering (2022-23)
 Fraud Detection

 xml language,
 java language etc.

1.6 Plan Of Project Execution

Table1.1summarises various tasks being carried out in estimated duration of

weeks. Figure 1.1 and Figure1.2 shows Gantt chart of various activities against
time scale in weekly manner.

Table1.1: Time line schedule of the Project

Work Task Description Duration

Basic Study Related work done for 2weeks

Compendium
Review of papers Analysis of different 2weeks
techniques
Problem Formulation Usedintextsummarization
Critical analysis and results 2weeks
Achieved in research
Literature Survey Comparison of technology 8weeks
Studied
Objective of Topic Andresultanalysis
Find some objectives 3weeks
related to system
Design of Mathematical Model Tem
Set theory and 3weeks
mathematics re
Quired while designing the
system
Software requirement installation and 3weeks
And Specification understanding of
software required for
execution of new system
Detailed Design Documents UML diagram and System 2weeks
Structure

Implementation of base GUI coding and first module 6weeks

Paper
Selection of dataset Dataset Searching and 2weeks
Creation
Implementation of proposed System Implementation of 3weeks
Module2 and
module3

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Institute of Technology, Pune – 28 Department of Computer Engineering (2022-23)
 Fraud Detection

Testing of system Test system quality, fix 4weeks

errors if any
And improve if needed.
Test system for different
dataset
Report writing Prepare initial report 4weeks
Final report with modification Prepare and modify initial 2weeks
report

Figure1.1: Gantt chart of Timeline Schedule1

Figure1.2: Gantt chart of Timeline Schedule2

Group Number: 11

Roll Number Name of Student

41 Harshvardhan Birajdar
42 Dipak Nandagavi
43 Snehal Goud

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Institute of Technology, Pune – 28 Department of Computer Engineering (2022-23)