SUPERVISED MACHINE LEARNING ALGORITHMS FOR DETECTING CREDIT CARD FRAUD
G.Bhargav Chowdari
mr, Saveetha School Of Engineering
Abstract
One of the most serious ethical challenges in the credit card industry is fraud. Our paper’s major goal is to identify credit card theft and offer a reasonable solution to the problem. Credit card fraud has cost customers and banks billions of dollars around the world. Fraudsters are constantly attempting to come up with new ways and tricks to commit fraud, despite the fact that there are several measures in place to prevent it. Fraud detection is extremely important in the banking and finance industries. For detection purposes, we will use an artificial neural network. As a result, in order to prevent it, we will develop a system that will not only detect fraud, but will also detect it before it occurs. In order to detect new scams, our system will learn from previous frauds. Mining algorithms were used to detect fraud, but they failed miserably. We use machine learning methods to detect fraud in credit card transactions in our paper. The research employs supervised learning methods that are applied to a kaggle dataset that is severely skewed and imbalanced. We used robust scalar to balance the set, resulting in 51 percent non-fraud cases and 49 percent fraud ones. Logistic regression, random forest, decision tree, and KNN have all been implemented, with additional learning curves displaying which algorithm performs best.
Accuracy, specificity, precision, and sensitivity are the evaluation criteria, and a comparative chart is created to show the comparative analysis of various supervised learning algorithms.
Keywords: KNN,Neural network,Logistic regression,Random forest,Decision tree
Journal Name :
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EPRA International Journal of Research & Development (IJRD)
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Published on : 2021-07-07
Vol | : | 6 |
Issue | : | 7 |
Month | : | July |
Year | : | 2021 |