Research on Credit Card Fraud Detection Model Based on Distance Sum

Abstract

Along with increasing credit cards and growing trade volume in China, credit card fraud rises sharply. How to enhance the detection and prevention of credit card fraud becomes the focus of risk control of banks. This paper proposes a credit card fraud detection model using outlier detection based on distance sum according to the infrequency and unconventionality of fraud in credit card transaction data, applying outlier mining into credit card fraud detection. Experiments show that this model is feasible and accurate in detecting credit card fraud.