Machine Learning-Based Approaches for Credit Card Fraud Detection: A Comprehensive Reviewz

Abstract

The objective of data analytics is to discover hidden patterns and use them to guide wise judgements in a range of circumstances. Theft of credit cards has significantly grown as a result of modern technologies and has become a popular target for scam artists. Publicly available databases on credit card fraud are very unbalanced. As more people conduct business online, Fraud involving credit cards has grown to be a serious problem for both consumers and financial establishments. standard rule-based fraud detection strategies have shown to be insufficient to combat fraudsters' ever-evolving tactics. Machine learning algorithms have thus developed into a powerful tool for real-time unsupervised learning, and anomaly detection., is then explored in detail in order to accurately identify fraudulent transactions. Furthermore, we explore the various data features utilized by machine learning algorithms, including transaction history, transaction amounts, merchant information, and geographical locations. “For people, companies, and financial institutions, A significant financial danger is credit card fraud. In order to detect theft, robust methods for machine learning must be developed. researchers can help minimize financial losses associated with fraudulent activities”. In this research we will be using weighted product method. Taken as Alternative parameters is “Fraud detection using Game theory for M1, Hybrid Approach For Fraud Detection Using Svm And Decision Tree for M2, Fraud Detection Using Som & Psofor M3, Dempster Shafer Theory Along With Bayesian Learning For Detecting Fraudfor M4, Cardwatchfor M5”. Taken as Evaluation parameters is “Sum of Squared Error, Mean Squared error, Root Mean Square error, Mean Absolute error, Root Mean Square Prediction Error, and Accuracy”. Model 1 outperformed the other 4 models when a machine learning algorithm was used to identify credit card frauds. With Weighted Product Method we are able to find the best way of detection of credit card frauds by machine learning algorithm which has been evaluated with various parameters and methodology.