Authentication and Fraud Detection

Abstract

Frauds are known to be dynamic and have no patterns, hence they are not easy to identify. Fraudsters use recent technological advancements to their advantage. They somehow bypass security checks, leading to the loss of millions of dollars. Analyzing and detecting unusual activities using one way of tracking fraudulent transactions. This paper aims to detect and prevent credit card fraud and several authentication techniques. Banks and financial institutions offer credit card fraud detection applications much value and demand. The Credit Card Fraud Detection Problem includes modelling past credit card transactions with the data of the ones that turned out to be fraud. This model is then used to recognize whether a new transaction is fraudulent or not. Our objective here is to detect 100% of the fraudulent transactions while minimizing the incorrect fraud classifications. An authentication system provides automatic identification of an individual based on a unique feature or characteristic possessed by the individual.