Credit Card Fraud Detection Using Hidden Markov Models

[seminar class]

Presented by:
S.Narmadha
S.Nithyakamatchi
T.Parimalam
M.Parthipan

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ABSTRACT
 The project titled “Credit card fraud detecting” is designed using Active Server Pages .NET with Microsoft Visual Studio.NET 2005 as front end and Microsoft SQL Server 2000 as back end which works in .Net framework version 2.0. The coding language used is C# .Net.
 In this project we are using hidden markov model this is mainly used to take data from the database.
 The bank ask some set of secret question to the user while providing the credit card to the new customer.
 Whenever the user swipe their credit card the admin will ask the secret question.
 The answer entered by the user is checked with the data in the database
 If the answer is correct the particular transaction is carried out or otherwise it will block the code.
EXISTING SYSTEM
Whenever a new user registers, his personal details are not cross checked.
Access is provided to him instantly. There is no credit card fraud checking.
This may allow any user to register and thus allowing malicious users also.
PROPOSED SYSTEM
In proposed system, whenever a new user registers, his credit card details are cross checked and then only his user id is generated.
This allows only correct users to login each time. At the same time credit card details are verified each time whenever a customer buys product.
This verification enables only right users to buy products.
Advantages:
 Credit card details are verified each time when a user buys products.
 Easy to use.
 Customer satisfaction is maintained.
 They will intimate to the personal mail id about the user id and password after verification.
SYSTEM SPECIFICATION
HARDWARE CONFIGURATION
 SYSTEM : PENTIUM III 700 MHZ
 HARD DISK : GB
 MONITOR : 15 VGA COLOUR MONITOR
 MOUSE : LOGITECH.
 RAM : 2 GB
 KEYBOARD : 110 KEYS ENHANCED.
SOFTWARE CONFIGURATION
 OPERATING SYSTEM : WINDOWS XP
 ENVIRONMENT : VISUAL STUDIO .NET 2005
 WEB TECHNOLOGY : ACTIVE SERVER PAGES.NET
 .NET FRAMEWORK : VERSION 2.0
 LANGUAGE : C#.NET
Modules:
 New card
 Login
 Security information
 Transaction
 Verification
 Modules Description:
New card:
 In this module, the customer gives there information to enroll a new card.
 The information is all about there contact details. They can create there own login and password for there future use of the card.
Login
 In Login Form module presents site visitors with a form with username and password fields. If the user enters a valid username/password combination they will be granted access to additional resources on website. Which additional resources they will have access to can be configured separately.
Security information
 In Security information module it will get the information detail and its store’s in database.
 It has a set of question where the user has to answer the correctly to move to the transaction section.
Transaction
 The credit card owner initiates a credit card transaction by communicating to a credit card number that is stored in database.
 The information is accepted as "network data" in the data base only if a correct personal identification code (PIC) is used with the communication.
 The "network data" will serve to later authorize that specific transaction.
Verification
 In verification the process will seeks card number and if the card number is correct the relevant process will be executed.
 If the number is wrong, mail will be sent to the user saying the card no has been block and he can’t do the further transaction.
 Database design
SYSTEM IMPLEMENTATION
Implementation is the most crucial stage in achieving a successful system and giving the user’s confidence that the new system is workable and effective.
Implementation of a modified application to replace an existing one.
This type of conversation is relatively easy to handle, provide there are no major changes in the system.