Credit Card Fraud Detection

Vinuka Silva nujaya Rajaguru achith Jayalath nodani Thilakarathna

School of Computing School of Computimg School of Computimg School of Computimg
Informatics Institute of Informatics Institute of Informatics Institute of Informatics Institute of
Technology Technology Technology Technology
Colombo, Sri Lanka Colombo, Sri Lanka Colombo, Sri Lanka Colombo, Sri Lanka
[email protected] [email protected] [email protected] [email protected]

Ma S Vi

Abstract— This thesis is indicative of the development and following the example. Some components, such as multi-
implementation of a Credit Card Fraud Detection System that leveled equations, graphics, and tables are not prescribed,
has been used with good results in the fight against the growing although the various table text styles are provided. The
menace of credit card fraud, which causes substantial financial formatter will need to create these components, incorporating
loss worldwide. We propose in this thesis the use of advanced the applicable criteria that follow.
machine-learning methodologies with user-centric software
design aimed at increasing the accuracy and speed of fraud II. LITERATURE REVIEW
detection, hence improving the overall safety of financial
transactions and the trust that electronic payment systems would A. Selecting a Template (Heading 2)
gain among its users. On the actual data analytics architecture, First, confirm that you have the correct template for your
the system is based on the Linear Regression, Logistic paper size. This template has been tailored for output on the
Regression, and Neural Network models. These come in handy in US-letter paper size.
the study of the transaction patterns in the determination of the
anomalies that could signal fraud. The prototype explains the
potential of the system to process big data with a high percentage
of accuracy and give out recommendations. The research applies B. Maintaining the Integrity of the Specifications
a quantitative approach in a methodological manner. The The template is used to format your paper and style the text.
approach makes a use-case of several machine-learning models All margins, column widths, line spaces, and text fonts are
that have been trained and tested over huge transaction datasets. prescribed; please do not alter them. You may note
Effectiveness of the system is benchmarked with the existing peculiarities. For example, the head margin in this template
solution with significant improvement in detection rates and measures proportionately more than is customary. This
operational efficiencies. This is complemented by the measurement and others are deliberate, using specifications that
comprehensive cost-benefit analysis in measuring the financial anticipate your paper as one part of the entire proceedings, and
and economic viability derived from deploying the machine- not as an independent document. Please do not revise any of
learning models. Finally in our Credit Card Fraud Detection
the current designations.
project the Linear Regression Model has an R-squared value of
86%, Logistic Regression model has an accuracy of 96%, III. METHODOLOGY
Artificial Neural Network model has an accuracy of 90%. In the
cost benefit analysis, we can see that the bank can save about Before you begin to format your paper, first write and save
$177,000 after the model deployment. The system received the content as a separate text file. Complete all content and
positive feedback from the industry experts and technical editing before formatting. Please note sections A-D below for
experts.. more information on proofreading, spelling and grammar.

Keywords— Credit Card Fraud Detection, Linear Regression, Keep your text and graphic files separate until after the text
Logistic Regression, Artificial Neural Network (ANN), Ensemble has been formatted and styled. Do not use hard tabs, and limit
Learning use of hard returns to only one return at the end of a paragraph.
Do not add any kind of pagination anywhere in the paper. Do
I. INTRODUCTION (HEADING 1) not number text heads-the template will do that for you.
This template, modified in MS Word 2007 and saved as a A. Abbreviations and Acronyms
“Word 97-2003 Document” for the PC, provides authors with
most of the formatting specifications needed for preparing Define abbreviations and acronyms the first time they are
electronic versions of their papers. All standard paper used in the text, even after they have been defined in the
components have been specified for three reasons: (1) ease of abstract. Abbreviations such as IEEE, SI, MKS, CGS, sc, dc,
use when formatting individual papers, (2) automatic and rms do not have to be defined. Do not use abbreviations in
compliance to electronic requirements that facilitate the the title or heads unless they are unavoidable.
concurrent or later production of electronic products, and (3) B. Units
conformity of style throughout a conference proceedings.
 Use either SI (MKS) or CGS as primary units. (SI units
Margins, column widths, line spacing, and type styles are built-
are encouraged.) English units may be used as
in; examples of the type styles are provided throughout this
secondary units (in parentheses). An exception would
document and are identified in italic type, within parentheses,
Identify applicable funding agency here. If none, delete this text box.
 be the use of English units as identifiers in trade, such  A graph within a graph is an “inset”, not an “insert”.
as “3.5-inch disk drive”. The word alternatively is preferred to the word
“alternately” (unless you really mean something that
 Avoid combining SI and CGS units, such as current in
alternates).
amperes and magnetic field in oersteds. This often leads
to confusion because equations do not balance  Do not use the word “essentially” to mean
dimensionally. If you must use mixed units, clearly state “approximately” or “effectively”.
the units for each quantity that you use in an equation.
 In your paper title, if the words “that uses” can
 Do not mix complete spellings and abbreviations of accurately replace the word “using”, capitalize the “u”;
units: “Wb/m2” or “webers per square meter”, not if not, keep using lower-cased.
“webers/m2”. Spell out units when they appear in text:
“. . . a few henries”, not “. . . a few H”.  Be aware of the different meanings of the homophones
“affect” and “effect”, “complement” and “compliment”,
 Use a zero before decimal points: “0.25”, not “.25”. Use “discreet” and “discrete”, “principal” and “principle”.
“cm3”, not “cc”. (bullet list)
 Do not confuse “imply” and “infer”.
C. Equations
 The prefix “non” is not a word; it should be joined to
The equations are an exception to the prescribed the word it modifies, usually without a hyphen.
specifications of this template. You will need to determine
whether or not your equation should be typed using either the  There is no period after the “et” in the Latin
Times New Roman or the Symbol font (please no other font). abbreviation “et al.”.
To create multileveled equations, it may be necessary to treat
the equation as a graphic and insert it into the text after your  The abbreviation “i.e.” means “that is”, and the
paper is styled. abbreviation “e.g.” means “for example”.

Number equations consecutively. Equation numbers, within An excellent style manual for science writers is [7].
parentheses, are to position flush right, as in (1), using a right IV. SOLUTION CONCEPT
tab stop. To make your equations more compact, you may use
the solidus ( / ), the exp function, or appropriate exponents. After the text edit has been completed, the paper is ready
Italicize Roman symbols for quantities and variables, but not for the template. Duplicate the template file by using the Save
Greek symbols. Use a long dash rather than a hyphen for a As command, and use the naming convention prescribed by
minus sign. Punctuate equations with commas or periods when your conference for the name of your paper. In this newly
they are part of a sentence, as in: created file, highlight all of the contents and import your
prepared text file. You are now ready to style your paper; use
ab  the scroll down window on the left of the MS Word Formatting
toolbar.
Note that the equation is centered using a center tab stop. A. Authors and Affiliations
Be sure that the symbols in your equation have been defined A minimum of one author is required for all conference
before or immediately following the equation. Use “(1)”, not articles. Author names should be listed starting from left to
“Eq. (1)” or “equation (1)”, except at the beginning of a right and then moving down to the next line. Names should not
sentence: “Equation (1) is . . .” be listed in columns nor group by affiliation. Please keep your
D. Some Common Mistakes affiliations as succinct as possible (for example, do not
differentiate among departments of the same organization).
 The word “data” is plural, not singular.
 The subscript for the permeability of vacuum 0, and
other common scientific constants, is zero with B. Identify the Headings
subscript formatting, not a lowercase letter “o”. Headings, or heads, are organizational devices that guide
 In American English, commas, semicolons, periods, the reader through your paper. There are two types: component
question and exclamation marks are located within heads and text heads.
quotation marks only when a complete thought or name Component heads identify the different components of your
is cited, such as a title or full quotation. When quotation paper and are not topically subordinate to each other. Examples
marks are used, instead of a bold or italic typeface, to include Acknowledgments and References and, for these, the
highlight a word or phrase, punctuation should appear correct style to use is “Heading 5”. Use “figure caption” for
outside of the quotation marks. A parenthetical phrase your Figure captions, and “table head” for your table title. Run-
or statement at the end of a sentence is punctuated in heads, such as “Abstract”, will require you to apply a style
outside of the closing parenthesis (like this). (A (in this case, italic) in addition to the style provided by the drop
parenthetical sentence is punctuated within the down menu to differentiate the head from the text.
parentheses.)
Text heads organize the topics on a relational, hierarchical
basis. For example, the paper title is the primary text head
because all subsequent material relates and elaborates on this REFERENCES
one topic. If there are two or more sub-topics, the next level The template will number citations consecutively within
head (uppercase Roman numerals) should be used and, brackets [1]. Ensure you use Harvard referencing guide 4 th
conversely, if there are not at least two sub-topics, then no edition for the same.
subheads should be introduced. Styles named “Heading 1”,
“Heading 2”, “Heading 3”, and “Heading 4” are prescribed. Number footnotes separately in superscripts. Place the
actual footnote at the bottom of the column in which it was
C. Figures and Tables cited. Do not put footnotes in the abstract or reference list. Use
a) Positioning Figures and Tables: Place figures and letters for table footnotes.
tables at the top and bottom of columns. Avoid placing them
Unless there are six authors or more give all authors’
in the middle of columns. Large figures and tables may span
names; do not use “et al.”. Papers that have not been published,
across both columns. Figure captions should be below the even if they have been submitted for publication, should be
figures; table heads should appear above the tables. Insert cited as “unpublished” [4]. Papers that have been accepted for
figures and tables after they are cited in the text. Use the publication should be cited as “in press” [5]. Capitalize only
abbreviation “Fig. 1”, even at the beginning of a sentence. the first word in a paper title, except for proper nouns and
element symbols.
TABLE I. TABLE TYPE STYLES
For papers published in translation journals, please give the
Table Table Column Head
English citation first, followed by the original foreign-language
Head Table column subhead Subhead Subhead
citation [6].
copy More table copya
a.
Sample of a Table footnote. (Table footnote) [1] G. Eason, B. Noble, and I. N. Sneddon, “On certain integrals of
Fig. 1. Example of a figure caption. (figure caption) Lipschitz-Hankel type involving products of Bessel functions,” Phil.
Trans. Roy. Soc. London, vol. A247, pp. 529–551, April 1955.
(references)
Figure Labels: Use 8 point Times New Roman for Figure
[2] J. Clerk Maxwell, A Treatise on Electricity and Magnetism, 3rd ed., vol.
labels. Use words rather than symbols or abbreviations when 2. Oxford: Clarendon, 1892, pp.68–73.
writing Figure axis labels to avoid confusing the reader. As an [3] I. S. Jacobs and C. P. Bean, “Fine particles, thin films and exchange
example, write the quantity “Magnetization”, or anisotropy,” in Magnetism, vol. III, G. T. Rado and H. Suhl, Eds. New
“Magnetization, M”, not just “M”. If including units in the York: Academic, 1963, pp. 271–350.
label, present them within parentheses. Do not label axes only [4] K. Elissa, “Title of paper if known,” unpublished.
with units. In the example, write “Magnetization (A/m)” or [5] R. Nicole, “Title of paper with only first word capitalized,” J. Name
“Magnetization {A[m(1)]}”, not just “A/m”. Do not label axes Stand. Abbrev., in press.
with a ratio of quantities and units. For example, write [6] Y. Yorozu, M. Hirano, K. Oka, and Y. Tagawa, “Electron spectroscopy
“Temperature (K)”, not “Temperature/K”. studies on magneto-optical media and plastic substrate interface,” IEEE
Transl. J. Magn. Japan, vol. 2, pp. 740–741, August 1987 [Digests 9th
ACKNOWLEDGMENT (Heading 5) Annual Conf. Magnetics Japan, p. 301, 1982].
[7] M. Young, The Technical Writer’s Handbook. Mill Valley, CA:
The preferred spelling of the word “acknowledgment” in University Science, 1989.
America is without an “e” after the “g”. Avoid the stilted Please ensure that all template text is removed from your
expression “one of us (R. B. G.) thanks ...”. Instead, try “R. B. conference paper prior to submission to the conference.
G. thanks...”. Put sponsor acknowledgments in the unnumbered Failure to remove template text from your paper may
footnote on the first page. result in your paper not being published.

First name Surname Institution Email Title (Prof/Dr./student)

address

*The above table should be completed with information of ALL authors. This table will not be published finally.
(In the institution column, just "university" or "company" is needed, the specific department is not necessary.)

*Important Tips While You Preparing The Paper:

The format should be standard A4 page.

 The margin all round should be at least 25mm

It should be portrait page orientation.

The author names and complete address (including country) should be stated in the paper.

All figures and tables should be mentioned in the main text.