Software Requirements

Specification
For

AI-Based Fraud Detection System (AFDS)

Version 1.0 approved

Prepared by -Aman Sharma

Reg No-12309308

Submitted to - Mr Manjinder
Singh

Lovely Professional University

Copyright © 2024
 DOS-21-03-2024

Copyright © 2024
Software Requirements Specification for <Project> Page iii

Table of Contents
Table Of Contents

Revision History ……………………………………………………………………………ii

1. Introduction……………………………………………………………………………01-03
1.1 Purpose…………………………………………………………………………… 01-01
1.2 Document Conventions…………………………………………………………...01-01
1.3 Intended Audience and Reading Suggestions…………………………………...01-01
1.4 Definitions and Abbreviations……………………………………………………01-02
1.5 Project Scope………………………………………………………………………03-03
1.6 References………………………………………………………………………….03-03

2. Overall Description……………………………………………………………………03-05
2.1 Product Perspective……………………………………………………………….03-04
2.2 Product Features………………………………………………………………… .04-04
2.3 User Classes and Characteristics…………………………………………………04-04
2.4 Operating Environment…………………………………………………………...04-05
2.5 Design and Implementation Constraints…………………………………………05-05
2.6 User Documentation…………………….…………………………………………05-05
2.7 Assumptions and Dependency…………………………………………………….05-05

3. Specific Requirements…………………………………………………………………05-06
3.1 Functional Requirements……………………………………………………..…..05-06
3.2 Non-Functional Requirements…………………………………………………....06-06
3.3 Constraints……………………………………………………………..…………..06-06

4. External Interface Requirements……………………………………………………..07-07

4.1 User Interface…………….………………………………………………………..07-07
4.2 Hardware Interface……………………………………………..………………....07-07
4.3 Software Interfaces……………………………………………………..……….....07-07

5. Other Non Functional Requirements…………………………………………………07-08

5.1 Performance Requirements…………………………………………………….....07-08
5.2 Software Requirements……………………………………………………………08-08
5.3 Security Requirements………………………………………………………….....08-08
5.4 Software Quality Attributes……………………………………………………….08-08

6. Other Requirements…………………………………..…………………………….…08-09
6.1 Database…………………………………………………………………………...08-08
6.2 Flow Chart…………………………………………………...……………………08-09

Revision History
Name Date Reason For Changes Version
Software Requirements Specification for <Project> Page iv
Software Requirements Specification for <Project> Page 1

1. Introduction
1.1 Purpose
The purpose of this Software Requirements Specification (SRS) document is to describe the
software requirements for the AI-based Fraud Detection System (AFDS). The system will be used
to detect and prevent fraud in online transactions and financial activities.

1.2 Document Conventions

This document follows the IEEE 830-1998 standard for software requirements specifications.

1.3 Intended Audience and Reading Suggestions

The intended audience for this document includes software developers, system analysts, project
managers, and stakeholders involved in the development and implementation of the AFDS.

1.4 Definitions, abbreviations

•AI:Artificial Intelligence

•AFDS:Artificial-based Fraud Detection System

•OOO:Operating System

•UC:User Class

•UI:User Interface

•HI:Hardware Interface

•SI:Software Interface

1.4.1 Definitions
• AI-based Fraud Detection System (AFDS)

A system that uses artificial intelligence algorithms to detect and prevent fraudulent transactions in real-

time.

• Transaction
A single financial transaction initiated by a user, such as a payment or transfer
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• User
A person or entity that initiates a transaction using the AFDS.

• Transaction Data:
The computer Data related to a transaction, including user information, transaction amount, time, location,
and other relevant details.

• Machine Learning Algorithms:

Algorithms used by the AFDS to learn from transaction data and detect fraudulent patterns.

• Fraudulent Transaction
A transaction that is identified as fraudulent by the AFDS based on the transaction data and machine learning
algorithms.

•Real-time Fraud Detection:

The ability of the AFDS to detect and prevent fraudulent transactions in real-time, as they occur.

1.4.2 Abbreviations
Throughout this document the following abbreviations are used:

•AFDS: AI-based Fraud Detection System

•AFDS: AI-based Fraud Detection System
•UI: User Interface
•UML: Unified Modeling Language
•SRS: Software Requirements Specification
•AI: Artificial Intelligence
•AI: Artificial Intelligence
•NLP: Natural Language Processing
•OCR: Optical Character Recognition
•KPI: Key Performance Indicator
Software Requirements Specification for <Project> Page 3

1.5 Project Scope.

The AFDS SRS document describes the software requirements for the AI-based Fraud Detection
System. The system will be used to detect and prevent fraud in online transactions and financial
activities

1.6 References
•Hyper Verge: hyperverge.co
•Michigan University: umich.edu
•Tech Crunch: https://techcrunch.com/
•General Discussion: https://www.kaggle.com/discussions/general/307498

2. Overall Description
2.1 Product Perspective

The Product Perspective section of the SRS document provides an overview of the system and its
place within the larger context of the organization and its users. This section should describe the
system's purpose, its intended users, and its relationship to other systems and processes within
the organization.
In the context of an AI-based fraud detection system, the Product Perspective section might
include the following information:

1. Purpose: The purpose of the AI-based fraud detection system is to detect and prevent
fraudulent transactions in real-time, reducing the risk of financial loss for the organization and its
customers.

2. Intended Users: The primary users of the system are likely to be fraud analysts, risk
managers, and other personnel within the organization who are responsible for detecting and
preventing fraud. However, the system may also be used by other stakeholders, such as law
enforcement agencies or regulatory bodies.

3. Relationship to Other Systems: The AI-based fraud detection system will need to integrate
with a variety of other systems, including payment gateways, banks, and other financial institutions.
The system will need to be able to pull in transaction data from these systems in real-time, analyze
the data for signs of fraud, and disseminate alerts to relevant stakeholders.

4. Business Context: The AI-based fraud detection system is being developed in response to a
growing need for real-time fraud detection and prevention capabilities in the financial services
industry. With the increasing volume and complexity of financial transactions, traditional fraud
detection methods are no longer sufficient to keep pace with the evolving tactics of fraudsters. By
leveraging advanced AI algorithms, the system aims to provide a more proactive and effective
approach to fraud detection and prevention.
Software Requirements Specification for <Project> Page 4

Overall, the Product Perspective section should provide a clear and concise overview of the
system and its role within the organization. By outlining the system's purpose, users, and
relationship to other systems, this section can help ensure that all stakeholders have a shared
understanding of the system's intended functionality and how it fits into the larger organizational
context.

2.2 Product Features

The product features of the AI-based fraud detection system include real-time transaction
monitoring, machine learning algorithms, risk scoring, customer behavior profiling, and case
management. The system can monitor and analyze transactions in real-time, detecting anomalies
and potential fraud based on a variety of factors. The system utilizes advanced machine learning
algorithms to detect patterns and trends in transaction data, enabling it to identify even the most
sophisticated fraud attempts. The system assigns a risk score to each transaction, providing
analysts with a quick and easy way to prioritize investigations. Customer behavior profiling enables
the system to identify deviations in behavior that may indicate fraud, while case management
enables analysts to investigate and resolve potential fraud cases. The system integrates with
external systems, such as payment gateways and banks, to pull in transaction data and
disseminate alerts. The product features are designed to provide a comprehensive and effective
solution to the problem of fraud detection and prevention.

2.3 User Classes and Characteristics

Fraud Analysts: Professionals responsible for detecting and investigating potential fraud cases.
They are trained in fraud detection and prevention techniques and are familiar with the system's
features and functionality.

Risk Managers: Individuals responsible for managing the organization's overall risk profile. They
use the system to monitor and assess the risk of fraud across the organization and develop
strategies to mitigate that risk.

System Administrators: Technical personnel responsible for installing, configuring, and

maintaining the system. They are experienced in network administration and have a deep
understanding of the system's architecture and technical requirements.

Developers: Technical personnel responsible for designing, developing, and testing the system.
They are skilled in software development, machine learning, and data analysis.
End-users: The general public who use financial services that the system will be applied to. They
are not required to have any special education or experience.

2.4 Operating Environment

The hardware, software and technology used should have following specifications:
• Internet connection with a minimum speed of 10 Mbps

• It requires a continuous power supply.

Software Requirements Specification for <Project> Page 5

• It should be connected to the bank's network

.
• The system should be able to validate user identity.

• Continuous power supply

• Ability to take input from user

• Ability to validate user

2.5 Design and Implementation Constraints

AFDS must be developed using agile methodologies and must be compatible with existing
payment gateways, banking systems, and credit card networks. The system should be designed to
handle a large volume of transactions and have the capability to process transactions in real-time.

2.6 User Documentation

The AFDS documentation will be provided in the form of a user manual, system administrator
guide, and installation guide. The user manual will include instructions on how to use the system,
how to interpret results, and how to resolve common issues. The system administrator guide will
cover system configuration and maintenance, while the installation guide will provide instructions
on how to install and configure the system.

2.7 Assumptions and Dependencies

It is assumed that the system will be integrated with existing payment gateways, banking systems,
and credit card networks that meet the required specifications. The system will depend on the
availability of accurate and complete transaction data to perform its functions.

3. Specific Requirements
3.1 Functional Requirements

•The system shall be able to process and analyze financial transactions, identifying potential fraud in real-
time (3.1.1).
Software Requirements Specification for <Project> Page 6

•The system shall be able to detect and alert financial institutions of potential fraudulent activity (3.1.2).
•The system shall be able to learn from previous transactions and improve fraud detection over time
(3.1.3).

•The system shall provide financial institutions with actionable insights and recommendations to
prevent future fraud (3.1.4).

3.2 Non functional Requirements

•The system shall be designed to process a high volume of transactions with minimal latency and high
availability (3.2.1).

•The system shall be able to operate and provide accurate results under varying network conditions (3.2.2).

•The system shall adhere to relevant privacy and security regulations and industry best practices (3.2.3).

•The system shall provide a user-friendly interface for financial institutions to manage and configure settings
(3.2.4).

3.3 Constraints

infrastructure (3.3.1)
•The systemshall be designed to integrate with existing payment gateways and financial institutions'

•The system shall only use anonymize and aggregated data for fraud detection and analysis (3.3.2).

•The system shall not store sensitive personal information or transaction data beyond the minimum necessary time frame for
analysis (3.3.3).

•The system shall be designed to comply with relevant industry standards, such as PCI-DSS (3.3.4).
Software Requirements Specification for <Project> Page 7

4. External Interface Requirements

4.1 User Interfaces
The customer user interface should be intuitive and easy to use, such that 99.9% of all new users
are able to complete their transactions without any assistance.

4.2 Hardware Interfaces

The hardware should support the following specifications

-Ability to connect to the bank’s network

-Ability to process incoming and outgoing transactions

-Continuous power supply

4.3 Software Interfaces

•The software interfaces are specific to the bank's internal systems and the AFDS
platform.

5. Other Non-functional Requirements

5.1 Performance Requirements

•The AFDS system should be able to handle a high volume of transactions and requests, without any
significant delay or downtime.

•The AFDS system should have minimal response time and a high throughput rate to ensure a seamless user
experience.

5.2 Safety Requirements

• The AFDS system should have a secure design, with multiple layers of security mechanisms, to prevent
unauthorized access and protect sensitive data.
Software Requirements Specification for <Project> Page 8

• The AFDS system should be compliant with industry-standard encryption protocols and have a robust
network infrastructure to ensure secure communication between various components.

5.3 Security Requirements

•The AFDS system should incorporate a multi-factor authentication mechanism, to ensure users' identities
and prevent fraudulent or malicious activities.

•The AFDS system should have a strong data privacy policy, to protect users' personal information and
comply with relevant regulations and standards.

5.4 Software Quality Attributes

5.4.1 Availability

The AFDS system should be available 24/7, with minimal downtime and a high degree of reliability.

5.4.2 Security

It must be impossible to plug into the network.

5.4.3 Maintainability

The AFDS system should be modular and scalable, to support future growth and development requirements.

6. Other Requirements
6.1 Data Base

•The AFDS (AI-Based Fraud Detection System) should be able to use multiple data formats for different
banks, depending on the specific data formats provided by each bank.

•The AFDS should ensure that all transactions are atomic, consistent, isolated, and durable, i.e., they should
possess the ACID properties.

6.2 Flow Chart Diagram :

Software Requirements Specification for <Project> Page 9