Credit Card Fraud Detection System

Credit card fraud is a highly problematic situation that has been plaguing banks and other credit institutions all across the globe. The criminals are being highly inventive in getting around the loopholes and the security protocols that have been designed by these institutions to prevent this kind of fraud. This has led to a lot of research being done on this topic which has been analyzed in depth in this survey article. The fraudulent transactions are highly difficult to detect due to the techniques used by the criminal that can effectively mark it as a legitimate transaction that goes unnoticed by the systems. To improve the effective detection of fraud on a credit card there is a need for an effective technique that utilizes machine learning approaches to improve the precision of the detection. For this purpose, an effective technique has been visualized through the implementation of the hidden Markov model and decision tree to achieve the fraud detection goals. This approach will be well defined in the future editions of this article.