02-04-2011, 11:47 AM
Credit Card Fraud Detection Using Hidden Markov Model
Abstract
Now a day the usage of credit cards has dramatically increased. As credit card becomes the most popular mode of payment for both online as well as regular purchase, cases of fraud associated with it are also rising. In this paper, we model the sequence of operations in credit card transaction processing using a Hidden Markov Model (HMM) and show how it can be used for the detection of frauds. An HMM is initially trained with the normal behavior of a cardholder. If an incoming credit card transaction is not accepted by the trained HMM with sufficiently high probability, it is considered to be fraudulent. At the same time, we try to ensure that genuine transactions are not rejected. We present detailed experimental results to show the effectiveness of our approach and compare it with other techniques available in the literature.
EXISTING SYSTEM:
In case of the existing system each and every system are considered as a trusted computer. And so the attacker finds it easy to attack the system with fake signals. And also in the emerging network where many are used for some good propos. And in those there a lot of chance for the attacker to send unwanted information. In case of the fire alarm, if all the system are considered as trusted they could send false alarm where it lead to a heavy loss. And so we need a system to protect it. Hence we develop a new system.
PROPOSED SYSTEM:
The proposed system we introduce a new technology to protect the network. This is achieved by the following way. Realizing widespread adoption of such applications
Mandates sufficiently trustworthy computers that can be realized at low cost. Apart from facilitating deployment of futuristic applications, the ability to realize trustworthy computers at low cost can also addresses many of the security issues that plague our existing network infrastructure. Although, at first sight, “inexpensive” and “trustworthy”
May seem mutually exclusive, a possible strategy is to reduce the complexity of the components inside the trusted boundary. The often heard statement that “complexity is the enemy of security” is far from dogmatic. For one, lower complexity implies better verifiability of compliance. Furthermore, keeping the complexity inside the trust boundary at low levels can obviate the need for proactive measures for heat dissipation. Strategies constrained to simultaneously facilitate shielding and heat dissipation tend to be expensive. On the other hand, unconstrained shielding strategies can be reliable and inexpensive to facilitate.
HARDWARE CONFIGURATION
The hardware used for the development of the project is:
PROCESSOR : PENTIUM III 766 MHz
RAM : 128 MD SD RAM
MONITOR : 15” COLOR
HARD DISK : 20 GB
FLOPPY DRIVE : 1.44 MB
CDDRIVE : LG 52X
KEYBOARD : STANDARD 102 KEYS
MOUSE : 3 BUTTONS
SOFTWARE CONFIGURATION
The software used for the development of the project is:
OPERATING SYSTEM : Windows 2000 Professional
ENVIRONMENT : Visual Studio .NET 2005
.NET FRAMEWORK : Version 2.0
LANGUAGE : VB.NET
WEB TECHNOLOGY : Active Server Pages.NET
WEB SERVER : Internet Information Server 5.0
BACK END : SQL SERVER 2000
REPORTS : Web Form Data Grid control
Abstract
Now a day the usage of credit cards has dramatically increased. As credit card becomes the most popular mode of payment for both online as well as regular purchase, cases of fraud associated with it are also rising. In this paper, we model the sequence of operations in credit card transaction processing using a Hidden Markov Model (HMM) and show how it can be used for the detection of frauds. An HMM is initially trained with the normal behavior of a cardholder. If an incoming credit card transaction is not accepted by the trained HMM with sufficiently high probability, it is considered to be fraudulent. At the same time, we try to ensure that genuine transactions are not rejected. We present detailed experimental results to show the effectiveness of our approach and compare it with other techniques available in the literature.
EXISTING SYSTEM:
In case of the existing system each and every system are considered as a trusted computer. And so the attacker finds it easy to attack the system with fake signals. And also in the emerging network where many are used for some good propos. And in those there a lot of chance for the attacker to send unwanted information. In case of the fire alarm, if all the system are considered as trusted they could send false alarm where it lead to a heavy loss. And so we need a system to protect it. Hence we develop a new system.
PROPOSED SYSTEM:
The proposed system we introduce a new technology to protect the network. This is achieved by the following way. Realizing widespread adoption of such applications
Mandates sufficiently trustworthy computers that can be realized at low cost. Apart from facilitating deployment of futuristic applications, the ability to realize trustworthy computers at low cost can also addresses many of the security issues that plague our existing network infrastructure. Although, at first sight, “inexpensive” and “trustworthy”
May seem mutually exclusive, a possible strategy is to reduce the complexity of the components inside the trusted boundary. The often heard statement that “complexity is the enemy of security” is far from dogmatic. For one, lower complexity implies better verifiability of compliance. Furthermore, keeping the complexity inside the trust boundary at low levels can obviate the need for proactive measures for heat dissipation. Strategies constrained to simultaneously facilitate shielding and heat dissipation tend to be expensive. On the other hand, unconstrained shielding strategies can be reliable and inexpensive to facilitate.
HARDWARE CONFIGURATION
The hardware used for the development of the project is:
PROCESSOR : PENTIUM III 766 MHz
RAM : 128 MD SD RAM
MONITOR : 15” COLOR
HARD DISK : 20 GB
FLOPPY DRIVE : 1.44 MB
CDDRIVE : LG 52X
KEYBOARD : STANDARD 102 KEYS
MOUSE : 3 BUTTONS
SOFTWARE CONFIGURATION
The software used for the development of the project is:
OPERATING SYSTEM : Windows 2000 Professional
ENVIRONMENT : Visual Studio .NET 2005
.NET FRAMEWORK : Version 2.0
LANGUAGE : VB.NET
WEB TECHNOLOGY : Active Server Pages.NET
WEB SERVER : Internet Information Server 5.0
BACK END : SQL SERVER 2000
REPORTS : Web Form Data Grid control
