Root cause analysis of credit card fraud

Abstract

Fraud detection has always been a major problem in society, especially in the banking, insurance and medical sectors. As more and more people are using credit cards to pay, the fraud rates tend to get higher. This situation is a considerable risk for the credit card company. At the same time, credit cards and their related industries have become an indispensable part of the economic construction of various countries. Therefore through descriptive analysis, regression and factor analysis, this paper analyzes the root cause of fraudulent transactions and makes simple predictions. Discusses the characteristics of cardholders and influencing factors of fraudulent transactions, The subjective psychological factors have the biggest influence on fraudulent transactions and puts forward some suggestions to prevent fraudulent transactions.