Online Financial Transactions Research Articles

Survey of Fraud Detection Techniques for Credit Card Transactions

With the rapid advancement of Internet technology in recent years, online financial transactions have become increasingly popular for purchasing a wide range of goods and services over the Internet, owing to their numerous advantages. The widespread adoption of credit cards has thus heightened the potential for abuse. Present a significant menace to users as a result of pervasive fraudulent operations. Credit card fraud has become an essential concern in today's digital era, posing substantial financial losses and security risks for financial institutions and consumers. In response to this growing challenge, researchers and industry experts have continuously developed and refined fraud detection techniques to safeguard against fraudulent activities. This survey paper aims to provide a comprehensive overview of the latest advances in fraud detection techniques for credit card transactions. Explore various methodologies, data sources, and machine learning algorithms used in fraud detection systems. Additionally, they discuss the challenges these systems face.

Predict and Optimize Financial Services Risk Using AI-driven Technology

With the rapid development of internet technology, many industries have embarked on a digital transformation. However, while the Internet has brought convenience to users, it has also become a breeding ground for criminals to commit fraud. On the one hand, a large number of users on the Internet more or less left data, criminals can use this information to practice accurate fraud users, improve the success rate of fraud; On the other hand, online financial transactions such as banking and e-commerce also provide more opportunities for criminals to commit fraud. Therefore, all kinds of fraud methods emerge in an endless flow, through the telephone, information, fishing and other means of fraud, not only to bring hundreds of millions of losses to society every year, but also to the security of people's lives have a huge threat. Monitoring and preventing online fraud is an important part of the cybersecurity industry. For known network fraud, based on the domain name of the phishing site, the account number and mobile phone number that send fraudulent information, simple and effective monitoring and defence can be carried out through the blacklist. However, it is difficult for traditional means to effectively defend against undocumented fraud. With the development of machine learning technology, it is the main research direction of fraud detection methods to discover the information sources and characteristics of information content through machine learning technology, and make real-time and continuous accurate judgments. This paper realises credit fraud detection by generating adversarial network technology, so as to prevent network security risks.

Secure Internet Financial Transactions: A Framework Integrating Multi-Factor Authentication and Machine Learning

Securing online financial transactions has become a critical concern in an era where financial services are becoming more and more digital. The transition to digital platforms for conducting daily transactions exposed customers to possible risks from cybercriminals. This study proposed a framework that combines multi-factor authentication and machine learning to increase the safety of online financial transactions. Our methodology is based on using two layers of security. The first layer incorporates two factors to authenticate users. The second layer utilizes a machine learning component, which is triggered when the system detects a potential fraud. This machine learning layer employs facial recognition as a decisive authentication factor for further protection. To build the machine learning model, four supervised classifiers were tested: logistic regression, decision trees, random forest, and naive Bayes. The results showed that the accuracy of each classifier was 97.938%, 97.881%, 96.717%, and 92.354%, respectively. This study’s superiority is due to its methodology, which integrates machine learning as an embedded layer in a multi-factor authentication framework to address usability, efficacy, and the dynamic nature of various e-commerce platform features. With the evolving financial landscape, a continuous exploration of authentication factors and datasets to enhance and adapt security measures will be considered in future work.

Teaching Model Based System Engineering – A Banking Benchmark Problem

AbstractMBSE has been widely used for industry processes and safety critical avionic and space systems. The use of MBSE process with STPA for safety analysis, mutation testing for verification, model checking and simulations for formal validation, has shown a better alternative to normal development methods. The growth of online financial transactions due to ease of internal payment methods, has resulted in a number of payment applications. System Engineering is not widely popular in academia and undergraduate levels. Benchmark problems are required for the students to get their hands “dirty” and for the instructors to provide hands on examples, matched to theory in textbooks. This paper looks into performing STPA and Model based analysis of such an application, with the goal to teach MBSE methods through industry example.

Reliable blockchain-based ring signature protocol for online financial transactions

Reliable blockchain-based ring signature protocol for online financial transactions

Sociodemographic Effects on Financial Inclusion: Implications Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countries

The world has reached the industry 4.0, where technological developments have been widely applied to electronic payment, with no exception on Muslim countries. This study aims to investigate association between sociodemographic and financial inclusion in country D-8 in the probability of using online financial transactions. Using The Global Findex 2017 from D-8 Organization for Economic Cooperation included in OIC countries and the logistic regression, this study explores the effect of sociodemographic namely gender, education, income status and working status on online financial transactions users. Using control variables such as Gross Domestic Product (GDP), Inflation and Exchange reta, results show that, there is a gender imbalance between men and women in using online transaction to access formal services. On the other hand, individuals who have higher level of education, upper-middle income and high-income, and those who work are more financially inclusive in using online transaction. In conclusion, those with higher sociodemographic status are more likely to use online transaction to access formal financial services. The government and third parties can use this study as policy recommendations for expanding online transaction as well as financial inclusion in developing Muslim countries.

The Role of Banks in Ensuring Financial Inclusion

Financial inclusion is the method of guaranteeing access to financial services and timely and adequate credit for vulnerable groups such as weaker section, low income people. In contrast to traditional banking and financial services, it has adopted new generation banking systems and online financial transactions for client satisfaction; financial inclusion provides financial products and solutions economically at the door step of the clients quickly. It is seen that over 40 per cent of the population now utilises financial inclusion to have access to financial services and timely and adequate credit for vulnerable groups. Economically weaker communities face challenges like irregular job, inadequate resources, unemployment, lack of education, paucity of identity proof and because of this condition of bank procedure, many people are deprived from accessing bank facilities and hold abundant cash at home or investment in some private schemes..

An Analysis of the Supervised Learning Approach for Online Fraud Detection

Illegal online financial transactions are now more sophisticated and global in scope, which costs both parties—customers and businesses. For fraud prevention and detection in the online setting, many different strategies have been proposed. While all of these techniques aim to detect and stop fraudulent online transactions, they differ in terms of their features, advantages, and disadvantages. This study assesses the current fraud detection research in this area to detect the employed algorithms and assessing in accordance with predetermined standards. The systematic quantitative literature review methodology was used to assess the research studies in the subject of online fraud detection. A hierarchical typology is created based on the supervised learning methods in scientific articles and their properties. Therefore, by integrating three selection criteria—accuracy, coverage, and costs—our research presents the best methods for identifying fraud in a novel approach. Index Terms : Detection, Online fraud, Online transaction, Supervised Learning Algorithm.

Transaksi Jual Beli dengan Bitcoin Perspektif Fiqh Muamalah

Bitcoin is an online payment system of peer-to-peer electronic money that is sent directly from one party to another without going through a financial institution. Bitcoin has characteristics as a currency or medium of exchange because it is accepted as a means of payment by its community. However, there will be a lot of hope that can happen to bitcoin users, namely because bitcoin is al-jahalah (unclear) will cause an element of fraud in buying and selling with bitcoin. So the purpose in this study is to find out how fiqh review is muamalah on buying and selling transactions with bitcoin. This research is qualitative literature (library research). Data collection methods use documentation and data analysis using deductive analysis techniques. The results of this study show that the practice of buying and selling with bitcoin is either aimed at the needs of exchange tools or investment businesses, especially in online financial transactions including from syubhat, and something that syubhat should be abandoned, because it does not bring benefits at once that is the purpose of Islamic sharia, namely its own benefits will not be realized.

Students’ Financial Literacy: Digital Financial Literacy Perspective

Objective - This study aims to assess students' financial literacy levels using digital financial literacy (DFL), the most recent element. Methodology – Students who are based in Selangor, Malaysia, were chosen for this study as they recorded a high rate of youth bankruptcy. Convenience sampling was used to distribute the questionnaires among the students between March and August of 2021, where a total of 184 responses were retrieved. Findings and Novelty – The results indicated that students possessed advanced financial knowledge and confidence. Despite the extensive experience in completing online financial transactions, the students lack digital financial knowledge and an understanding of the risks associated with digital financial services. Therefore, including DFL in financial education is essential to ensuring future generations' financial well-being. This study also adds to the limited literature on financial digital literacy and serves as an eye-opener to policymakers on its importance in financial education. Type of Paper - Empirical Keywords: Financial literacy, financial confidence, Digital financial literacy, Digital financial knowledge, Students JEL Classification: I22, M29, O16

ONLINE PAYMENT OPTIONS AND CONSUMER TRUST: DETERMINANTS OF E-COMMERCE IN AFRICA

The purpose of this paper is to investigate the effect of online payment options and consumer trust on the awareness and perception of e-commerce in Africa. A five-construct model was developed and empirically tested utilizing the structural equation modeling (SEM) technique to probe answers for the variables under study. 760 professionals and college students who reside in Somalia responded to our online questionnaire, then 744 clean responses were selected after removing uncompleted answers. The study results determined that the availability of locally popular payment options such as mobile payment in Africa affects the level of awareness and public perception towards e-commerce. Moreover, the current global online payment options overlook the local technologies popular in Africa. Also, consumer trust was found to be a good determinant of the awareness and perception of e-commerce in the Least Developed Countries (LDCs). This paper finds that including more payment options would make a difference in Africa. It also shows that low consumer trust could be solved if consumers are given assurances for their online financial transactions. This paper contributes to the existing literature proving that various online payment options and consumer trust can be strong determinants of e-commerce, even in LDCs such as Somalia. Also, it added a new value to the current understanding of the impact of both awareness and perception of e-commerce on the propensity for online shopping by finding contradictory results in our research context.

Getting practical with quantum security

Quantum Networks Current communication platforms, exchange of data, and online financial transactions are secured by classical encryption methods. The advent of quantum computers is expected to replace these protocols at some point. Quantum key distribution (QKD) relies on quantum mechanics to ensure that security is maintained, but the operation of the quantum components is manufacturer dependent, making it difficult for different systems to talk to each other. De Marco et al. close that communication gap by developing a multirate, multiprotocol QKD transmitter. The operating regime can be adjusted in real time by changing the driving signal, thereby allowing it to communicate with different receiving devices. Such operational flexibility will be useful for securing what will be a multiuser, multivendor quantum network environment. Optica 8 , 911 (2021).

Evaluation of service quality and user experience on credit card application using e-SERVQUAL model and usability testing

One of the emerging fields of a startup business is financial technology, also known as fintech. Fintech is divided into several sectors, namely payment, aggregator, lending, crowdfunding, and other online financial transactions. The study was conducted at an Indonesia fintech aggregatorthat became the first e-commerce marketplace for financial products such as credit cards, insurance, and loans. The data showed that 53.6% of the number of application submissions came from the credit card category but there was a decrease of 22.8% in 2019. The purpose of this study is to evaluate the service quality and user experiences from credit card submissions in a mobile application to improve the platform to fit the customer’s needs. Service quality evaluation is done using the e-SERVQUAL modelwith efficiency, system availability, fulfillment, privacy, responsiveness, compensation, contact as its dimensions. The results found that 13 variables need to be improved by the company. Evaluation of user experience done by usability testing method by considering the dimensions of learnability, effectiveness, efficiency, and satisfaction. Based on the Pareto diagram, there 21 failuresthat need to be prioritized. User satisfaction obtained using the System Usability Scale (SUS) is 44.5 which is categorized in the OK category. Design of improvement is done using the House of Quality method and 10 technical requirements need to be developed. After giving a proposal using a prototype, the re-test was done, and user satisfaction increase to 70.4.

Design, Analysis, and Implementation of a Twofactor Authentication Scheme using Graphical Password

With the increase in the number of e-services, there is a sharp increase in online financial transactions these days. These services require a strong authentication scheme to validate the users of these services and allow access to the resources for strong security. Since two-factor authentication ensures the required security strength, various organizations employ biometric-based or Smart Card or Cryptographic Token-based methods to ensure the safety of user accounts. But most of these methods require a verifier table for validating users at a server. This poses a security threat of stolen-verifier attack. To address this issue, there is a strong need for authentication schemes for e-services that do not require a verifier table at the server. Therefore, this paper proposes the design of an authentication scheme for eservices which should be resistant to various attacks including a stolen verifier attack. The paper will also discuss: 1) The proposed scheme analyzed for security provided against the known authentication attacks 2) The concept mplementation of the proposed scheme.

Enhancement of digital signature algorithm in bitcoin wallet

Bitcoin is a peer-to-peer electronic cash system largely used for online financial transactions. It gained popularity due to its anonymity, privacy, and comparatively low transaction cost. Its wallet heavily relies on Elliptic Curve Digital Signature Algorithm (ECDSA). Weaknesses in such algorithms can significantly affect the safety and the security of bitcoin wallets. In this paper, a secure key management wallet was designed based on several changes in the wallet parts. In the cold wallet, we employed an image-based passphrase to achieve a strong entropy source of master seed. The hot wallet, the proposed key_ Gen algorithm is modifying to the key generation step of the ECDSA that it is to generate a fresh key pair at each transaction. The final part ensures recovering all keys on both hot and cold wallets without daily backups in case of losing the wallet. The findings prove that the proposed cold wallet is resisting against a dictionary attack and overcoming the memorizing problem. The proposed hot wallet model acquires good anonymity and privacy for bitcoin users by eliminating transaction likability without additional cost. The execution time for signing a transaction of the proposed model is~70 millisecond, which is then important in the bitcoin domain.

The Perception of Teachers about Financial Markets and Instruments Information

In recent years, online shopping, online financial transactions and social media have become a subject of interest to everyone. Current economic news and economic developments are being interpreted by all. In addition, individuals constitute the class of consumers as the most important element of microeconomics. Also regardless of profession, individuals carry out entrepreneurial activities and constitute economic units such as firms and so on. The public's so much interconnectedness with the economy is normal, and this interest has been the subject of more research in academic circles in recent years. Many researches have been done on measuring the financial literacy of various public sectors. Various scales have been prepared. The financial literacy of teachers, who are the main component of education system, is very important both in terms of the large professional community they represent and in terms of the student population they train. In this aspect, teachers' familiarity with financial systems and concepts, how they make sense of them in their daily lives have been seen as a subject worth investigating. The scales of financial literacy studies are examined in the literature. Also, the scale of the measurement of the level of financial knowledge felt towards the business environment other than financial literacy has been examined. A new scale has been prepared that includes the main elements of these two basic scales. A survey has been conducted in various subtitles that do not exceed one page. The questionnaire was applied to teachers in schools. It is given high importance that they fill the questionnaire with the researcher. Data which transmitted in excel are tried to be interpreted through the SPSS program. The survey contains sub-headings and will serve as the basis for more than one study. Teachers' knowledge of the financial system is as low as expected. When applying the questionnaire, teachers talk about realizing that they don't really know some of the concepts they use in everyday life. However, it is observed that the information levels are increasing about some focus issues. Data related teachers' financial literacy, such as the functioning of the financial system, recognizing financial institutions, recognizing financial instruments, recognizing and making financial transactions are gathered. Summary tables have been created. In this study, teachers' familiarity with financial concepts is explained.

Security perception of e-banking users in India: an analytical hierarchy process

When choosing online financial transactions, security is a paramount concern of users. Three categories of banks in India, namely public, private and foreign banks, have a completely different focus on technology and capabilities. The study aims at investigating e-banking users’ perception with regard to online risk for public, private and foreign banks. Online risk perception for the abovementioned banks was assessed on three major risk parameters, i.e. security aspect, privacy aspect, and trust; using a multiple-criteria decision-making tool, called the Analytical Hierarchy Process (AHP). The outcomes indicate that security risk is paramount among various aspects of perceived risk, followed by privacy and trust concern. Moreover, public sector banks are perceived to be the safest in this aspect. Public sector banks are also considered to be benign in terms of privacy and trust. Given the general user’s perception of risk generated by all the three risk parameters taken together, public sector banks are perceived to be the most secure, followed by private and foreign banks. The findings of this study have various implications for both research and practice. Private and foreign banks in India may adopt appropriate marketing strategies to achieve a favorable perception. Various studies have been conducted earlier on these factors and their interrelationship, but limited research has been carried out to demonstrate the importance of each of these factors in relation to the other as perceived by the user. Moreover, the study quantifies factors in order of their importance.

When rumors create chaos in e-commerce

• Modeling rumor based epidemics for cyber consumerism. • Epidemic threshold, termed as individual acceptance threshold, is calculated. • Model is analyzed at rumor-free and rumor-endemic equilibrium points to find the conditions for their local and global stability. Our work is a modest attempt to first answer why a large number of Internet users are still not active cyber consumers even after knowing the ease and convenience of e-commerce and thereafter the development of our different modeling frameworks in order to provide better understanding for planning and implementation of e-commerce strategies. Various types of malware attacks are the greatest concerns of cyber consumers in doing e-commerce and it may be the main reason behind the huge gap between Internet users and cyber consumers. Another factor equally important and the topic of this research which can also be treated as the centre stage behind this gap is probably rumor that intentionally or accidentally spread via various mediums such as word of mouth or through social networking sites. Since rumor can badly impair morale and confidence of cyber consumers, how to retain cyber consumer's trust in e-commerce and its online financial transactions is a million dollar question. Our rumor based epidemic model for cyber consumerism has four compartments : cyber consumers, confused consumers, escapers and recovered consumers. In this model, the epidemic threshold, can also be termed as individual acceptance threshold, is calculated which may help in evaluating the necessary strategies to control rumor based epidemic in cyber population. It signifies that the rumor based epidemic dies out if the epidemic threshold is less than one and it becomes endemic if the threshold is more than one. Our proposed model is analyzed at rumor-free and rumor-endemic equilibrium points to find the conditions for their local and global stability. Numerical methods and simulation tools are employed to solve and simulate the system of ordinary differential equations developed. Effect of rumor in cyber consumerism is critically analyzed.

An Analysis of the Most Used Machine Learning Algorithms for Online Fraud Detection

Today illegal activities regarding online financial transactions have become increasingly complex and borderless, resulting in huge financial losses for both sides, customers and organizations. Many techniques have been proposed to fraud prevention and detection in the online environment. However, all of these techniques besides having the same goal of identifying and combating fraudulent online transactions, they come with their own characteristics, advantages and disadvantages. In this context, this paper reviews the existing research done in fraud detection with the aim of identifying algorithms used and analyze each of these algorithms based on certain criteria. To analyze the research studies in the field of fraud detection, the systematic quantitative literature review methodology was applied. Based on the most called machine-learning algorithms in scientific articles and their characteristics, a hierarchical typology is made. Therefore, our paper highlights, in a new way, the most suitable techniques for detecting fraud by combining three selection criteria: accuracy, coverage and costs.

Perception of rural youth towards digital payment-A study in Hebri

After demonetization initiatives, most of the people in India started electronic payments for their transactions. Digital payment methods are often easy to make, more convenient and provide customers the flexibility to make payments from anywhere and at any time. These are a good alternative to traditional methods of payment and speed up transaction cycles. After demonetization in 2016, people slowly started embracing digital payments. Even small merchants and shop keepers started accepting payments through the digital mode. Slowly India is moving from cash to cashless economy. But still it has not been accepted by all. The reasons may be lack of trust, lack of technical knowledge, fear of traceability of transaction, habit etc. In rural areas, online financial transactions, e-commerce activities as well as digital payments still lag considerably, despite demonetization and the drive to promote digital payments over the last two years. The youth themselves not known much about this programme. The development of any country mainly depend on the youth power. Therefore, it is essential that the youth, the future generation, must know digital payment methods to make this programme successful. Further, rural India lags behind urban area in digital payment. In this paper “Perception Of Rural Youth Towards Digital Payment-A Study In Hebri”, a special attention has been given to rural youth and study has been made on their perception level towards digital payment. The youth of Hebri Taluk in Udupi district has been taken for study purpose. Statement of the Problem:In these days Digital Payments are an important part of our life. The Government of India has been taking several measures to promote and encourage digital payments in the country. However, the success of digital India, mainly depend on the involvement of the people, especially youth. Because, the youth in the present will lead the future of India. Their power is an asset of all the existing age groups in the society. India is relatively young as a nation with around 28 million youth population being added every year. More than 50 percent of its population is below the age of 25 and more than 65 percent are aged below 35. The people in rural areas are still not adjusted to digital payment. In rural areas, online financial transactions, e-commerce activities as well as digital payments still lag considerably, despite demonetization and the drive to promote digital payments over the last two years. The youth themselves not known much about this programme. Therefore, it is essential to know the perception of rural youth towards digital payment.