Data Mining and Machine Learning Techniques for Credit Card Fraud Detection

Abstract

In the recent era, everybody is dealing with digital data. In such a scenario, individual one heavily depends on credit card. Therefore, the demand of online transactions and usage of e-commerce sites are rising at the rapid rate. The online payments are the main cause of increasing crime rate heavily. Hence, it is the biggest challenge for the IT sector to identify and solve such critical problems. This critical issue can be tackled with the help of machine learning. This paper mainly emphasis on various data mining algorithms such as C4.5, CART algorithms, J48, Naïve Bayes algorithm, EM algorithm, Apriori algorithm, and SVM, and inform the accuracy and precision of the result. The machine learning finds the genuine and non-genuine transition using learning pattern matching and classification technique. The machine learning also normalized the data, identified the anomalies in transaction, and provided appropriate results.