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CC Fraud

The document discusses developing a machine learning model using random forest algorithm to detect credit card fraud. It describes credit card fraud and the objective of the project. It also explains random forest algorithm and the steps undertaken which include importing libraries, describing and visualizing the dataset, building the random forest classifier and evaluating parameters.

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24 views14 pages

CC Fraud

The document discusses developing a machine learning model using random forest algorithm to detect credit card fraud. It describes credit card fraud and the objective of the project. It also explains random forest algorithm and the steps undertaken which include importing libraries, describing and visualizing the dataset, building the random forest classifier and evaluating parameters.

Uploaded by

hewepo4344
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SUMMER TRAINING PROJECT ON

“CREDIT CARD FRAUD DETECTION”


USING MACHINE LEARNING
SUBMITTED BY :
HARKIRAT SINGH
BCA V (M2)
07113702021
INTRODUCTION

Welcome everyone! Today, we're going to talk about one of the most pressing issues in the financial
world: credit card fraud. With the rise of digital transactions, the risk of fraud has increased
exponentially. As such, it's crucial that we explore innovative solutions to combat this growing
problem.
Enter machine learning. By leveraging the power of advanced algorithms, we can detect fraudulent
activity with greater accuracy and efficiency than ever before. But why is this so important? The
answer is simple: fraud hurts everyone. From individuals who lose their hard-earned money to
businesses that suffer significant losses, the impact of fraud can be devastating. That's why we need
to take action, and that's why we're here today.
What is credit card fraud?

Credit card fraud is a type of financial crime that involves the unauthorized use of someone else's
credit card information to make purchases or obtain cash advances.
There are several types of credit card fraud, including identity theft, skimming, and phishing scams.
Identity theft occurs when a thief steals someone's personal information, such as their name,
address, and social security number, and uses it to open a credit card account in their name.
Skimming involves the use of a device that reads the magnetic strip on a credit card, allowing the
thief to create a duplicate card. Phishing scams involve the use of fraudulent emails or websites to
trick people into revealing their credit card information.
OBJECTIVE

The objective of this project on “Credit Card Fraud Detection” is to develop a machine learning
model that can automatically identify fraud. This is challenging task, as fraud are often designed to
be very realistic from the actual scenario. Random Forest Algorithm can be used to identify patterns
which help us to distinguish between actual and the fraud scenario .
RANDOM FOREST ALGORITHM

A Random Forest is a helpful machine learning tool used for things like predicting categories or numbers. It's like
a group of friends who each give an opinion, and then we decide what to do based on what most of them say.
This "forest" is made up of many decision trees, each created using a different part of the data. What's cool is
that it also randomly picks a few things to think about for each tree, making them all a bit different. Each tree
makes its own guesses based on the data, and when we need to make a final decision, we just count up how
many trees agree on something (for categories) or average their guesses (for numbers).
Random Forest has some good things going for it. It's less likely to guess based on tiny details and usually makes
pretty good predictions. It can also tell us which things were the most important in making those predictions,
which is handy. Plus, it's friendly to all kinds of data, whether it's categories like "yes" or "no" or numbers like
ages or prices. People use Random Forest in different jobs, like finance, healthcare, and marketing, where they
need help making smart predictions that can handle tricky data situations. So, it's like having a group of reliable
pals to help us make the best decisions based on data.
The data set is extracted from the different sources like Kaggle. For this model I used a data set containing all the records of credit card frauds..
•Importing Libraries and after that reading the CSV file .

* Importing Various Libraries


* Describing the Dataset
• Imbalance the Data • The amount details for • The amount details for normal
fraudulent transaction transaction
Training and Testing data bifurcation and Split the data into training and testing sets

Building the Random Forest Classifier


Building all kinds of evaluating parameters
Data Visualization of Dataset
• HEATMAP

A heatmap is a visual representation of data where values are


depicted as colors,
often in a grid format, to highlight patterns,
variations, or concentrations within the dataset.
Data Visualization of Dataset
• BOXPLOT

A boxplot, also known as a box-and-whisker plot,


is a graphical representation of the distribution of
a dataset. It displays the median, quartiles, and
potential outliers, providing a visual summary of the
data's central tendency and spread.
Data Visualization of Dataset
• SCATTER PLOT

A scatter plot is a graphical representation of data points on a two-


dimensional plane, where each point represents a single observation with
two variables. It's used to visually assess the relationship or correlation
between the two variables, helping to identify patterns, trends, or
outliers in the data.
Data Visualization of Dataset
• PCA VISUALISATION

Principal Component Analysis (PCA) visualization is a technique used to


represent complex data in a lower-dimensional space while preserving its
essential features. PCA achieves this by identifying the principal
components or directions of maximum variance within the data.
Conclusion

• In conclusion, credit card fraud is a serious problem that can have devastating
consequences for individuals and businesses alike.

• But it's crucial to understand that machine learning isn't a magic fix. It comes
with its own set of challenges and limits. These include problems with the data
quality, how accurate the models are, and when they might mistakenly flag
something as fraud when it's not. So, when you're using machine learning for
catching fraud, it's important to think about these things carefully and follow
the best ways to make sure it works well.

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