ANALYSIS OF DESIGN AND IMPLEMENTATION OF A CREDIT CARD DETENTION SYSTEM ON FRAUD
BACKGROUND OF THE STUDY: Online transactions for the acquisition of products and services are becoming more prevalent in daily life. 28 of the world's population, according to a Nielsen research done in 2007–2008, use the internet. 85 of these individuals have used the internet to do online shopping, which is a 40 percent increase from 2005 to 2008. Credit cards are the most popular payment option for internet purchases (Stolfo, 2020). Credit cards are the most widely accepted form of payment for both online and offline transactions in both developed and developing nations. It may cause the issuing authority to suffer financial losses. In the second manner of buying, known as online, these transactions often take place over the phone or the internet, and in order to complete this kind of transaction, the user will need certain crucial credit card information (such as credit card number, validity, CVV number, name of card holder).
Credit cards are utilized in our everyday lives to make purchases of goods and services using either a real card for offline transactions or a virtual card for internet transactions. When making a purchase with a physical card, the cardholder physically hands the retailer his card to complete the transaction. An attacker has to steal the credit card in order to conduct fraudulent transactions for this sort of purchase. The credit card firm may suffer a large financial loss if the cardholder is unaware of the loss of the card. Attackers simply require a little amount of information to conduct fraudulent transactions in the online payment mechanism (secure code, card number, expiration date etc.). Most transactions in this buying method will be made over the phone or the Internet (Aleskerov, 2019). A fraudster just has to be aware of the card information in order to make these sorts of transactions fraudulently. The majority of the time, the legitimate cardholder is unaware that his card information has been seen or stolen. The only method to identify this kind of fraud is to examine each card's purchasing habits and look for any discrepancies from "normal" spending habits. A potential strategy for lowering the frequency of successful credit card frauds is fraud detection based on the study of the cardholder's past purchase data. Every Card holder may be represented by a collection of patterns that include details about the usual purchase category, the amount spent, the time since the previous transaction, and other behaviorist profiles that individuals often display (Kim , 2022).
Deviation from these patterns might endanger the system.
STATEMENT OF THE PROBLEM
It has already been mentioned that the losses of a credit card fraud can affect all consumers, merchants and issuing banks. Therefore, it is important to establish techniques for detecting and preventing credit card fraud. This research contains a variety of techniques which can be used to build fraud detection systems. Understanding the characteristics of all those techniques can be a tedious task. A technique which promises a high predictive accuracy may be an appealing candidate to be used in the fraud detection system. However, there are various different parameters that need to be considered before deciding which technique best suits the needs of a particular situation. And also as all the transaction is maintained in a log. And also now a day’s 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 is a need to develop a system to fight cyber -crime and to aid in investigating the fraud. To avoid the entire above disadvantage we propose the system to detect the fraud in a best and easy way.