Credit Card Fraud Detection

Credit Card Fraud Detection

(Safeguarding Financial Transactions)
 Introduction

Overview of Credit Card Fraud:

-Definition:
Illegitimate use of credit card information for unauthorized transactions.

- Increasing Concern:
Rising instances of credit card fraud globally.
 Importance of Detection
-

1.Financial Impact

2.Losses to Individuals and Businesses

3.Erosion of Trust in Financial Systems

 Common Types of Credit Card Fraud

1. Card Skimming
- Description: Unauthorized copying of card details using a small device.
- Prevention: Regularly checking ATMs and card readers for unusual devices.

2. Phishing
- Description: Fraudsters tricking individuals into providing sensitive information.
- Prevention: Educating users about phishing techniques and warning signs.

3. Identity Theft
- Description: Stealing personal information to impersonate the cardholder.
- Prevention: Strengthening identity verification processes
Technologies used

in Credit Card Fraud Detection

Technologies in Credit Card Fraud Detection

1.Machine Learning
- Utilizing algorithms to identify patterns indicative of fraud.

2.Behavioral Analytic
- Analyzing user behavior for abnormal patterns.

3.Biometric Authentication
- Adding an extra layer of security through fingerprint or facial recognition.
 Machine Learning

Algorithmic Approaches

- Supervised Learning: Training models on labeled datasets.

- Unsupervised Learning: Detecting anomalies without labeled data.

- Deep Learning: Using neural networks for complex pattern recognition.

 Behavioral Analytics

1.User Behavior Profiling

2.Establishing normal behavior for each user.

3.Identifying deviations from established patterns.

 Biometric Authentication

1.Enhanced Security Measures

2.Fingerprint Recognition

3.Facial Recognition

4.Retina Scans
 Real-Time Monitoring

1.Importance of Timely Detection

2.Early detection minimizes potential losses.

3.Real-time monitoring for immediate response.

Conclusion

1. Detection is crucial for safeguarding consumers against unauthorized transactions.

2. Minimizing the impact of fraud helps maintain a secure environment for economic transactions.

3. Effective detection contributes to the overall stability of the financial ecosystem.

4. Recognizing that fraud techniques will continue to evolve.

5. Emphasizing the need for constant improvement and innovation .

-By: Satyam Tyagi
and
Siddhant Singh