International Journal of Scientific Research in Engineering and Management (IJSREM)

Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

UPI fraud Detection Using Machine Learning

Sameer Kolekar, , Sourabh Panhale ,Dnyanendra Rengade ,Dipak Pawar
Prof. P.V,Kothawale
Dr J. J. Magdum College of Engineering, Jaysingpur,
Maharashtra, India

ABSTRACT preferring to use the online banking rather than the

In recent years, banking through mobile banking and traditional way for banking services. Government
usage of debit and credit cards for transfer of money and initiatives like introduction of unified payment
purchases of goods has increased exponentially due to interface system are also helped in increase in the use
ecommerce and the introduction of Unified Payments
Interface (UPI) by the government of India which allows of banking initiatives like this has encouraged a large
user easy to use facility with minimal to no charges. To number of clients to use remote banking.
work this mechanism properly, a secure framework is
required to avoid the risk of cyber fraud. there has been a 1.3. Banking Security:
great shortfall of security in banking applications in this With the increase in the e-banking the security of
type of transactions. This article presents a banking has been subjected to various attacks and
comprehensive study on banking security in e-banking by it has been proved that there is a great shortfall in
various techniques like blockchain, data encryption, voice the security of online banking. Most of the banking
recognition. This article explores the various security and applications are using two factor authentication for
technologies recommended by various researchers for verification now a day . For securing the banking
safe and secure use of online banking. and the banking services lots of research has been
done so far. many researchers are recommending
Keywords—E-banking, Cyber fraud, Banking cryptography, biometric techniques, blockchain
security, Voice recognition, Blockchain, Data encryption. and secure transmission methods for the secure
banking services.
1.. INTRODUCTION
2.EXPLORATION OF SECURED ONLINE BANKING
1.1. Background: METHODOLOGIES
A Bank is a key part of civilization. It is a financial One of the modes of communication that depends
institution which deposits money given from the public on wireless communication is the mobile, which
and stimulates loan. Banks play a important role in the utilizes a network of transmission towers that are
economic stability and development of the country. It is a spread out across a given area. The majority of these
Centralized system which is regulated by the respective messaging services rely on Internet security and
governments of the states. the present model of banking mobile network access security technology. The
can be traced back from the 14th century . There are SMS's encryption using the Playfair Technique Instead
different types of banks which are used for different than using single letters as in the simple substitution
purposes like retail banking, investment banking, etc. cypher and somewhat more complicated vigenère
cypher systems then in use, the approach encrypts
1.2. Online Banking: pairs of letters (digraphs). Only the portable devices
With the rapid increase in the advancement of the and the cellular base channel's encapsulation terminal
technology in the past few decades now banking services is used during transmission .
become online and more convenient as offline banking The new security primitive known as puzzle
services become more time consuming and proved costly security and privacy issues which was created by using
while compared to online banking. Due to the cheap cost puzzle systems and is based on laborious ai riddles like
of internet and the increase in the use of smart phones sensory key systems this is a password system that
people are a common combination by connecting to a combines a problem with graphics contrasting math

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 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

analytics captcha with this will help to reduce the electronic wallets. By integrating a fingerprint reader
significance of captcha and achieve greater usability and into the programme, using end-to-end encryption to
data protection security professionals believe that AES is prevent data leakage, utilising behaviour analysis, and
resistant to brute-force assaults a threat actor uses a brute- other methods, we may examine the security of
force attack when they try every key combination until banking services. Similar to the research
they find the right one the size of the key used in methodology, which consists of three interconnected
encryption technique. This system offers enhanced phases that describe the analysis environment,
protection and security that is highly accurate . installation procedures, and necessary downloads for
Mobile banking can provide 3A capabilities that are no each mobile APK, such as the application, M-Banking
longer constrained by time or space. With the maturation encryption algorithm, Banker Implementation
of mobile distance transmission technology and improved awareness and training, electronic fund transfer in
mobile technology capabilities, it will be capable of Jordan, Electronic Security Audit, and Smart Android
adding more substantially to the banking system. By Review Kit are some of the terms that have been
implementing cutting-edge information and employed. Two mobile banking applications' overall
communications technology, moveable (mobile) banking, security ratings indicated shoddy security procedures
a new type of commercial facility importer, may offer that urgently call for fresh clean. additional security
customers effective and efficient production and concerns mentioned about most applications employ
economic. Mobile banking will be capable of external drive for personal data. A study was
contributing more substantially to the banking system if conducted in an effort to supplement the earlier
banks can integrate it with their current offerings, take evaluations by focusing on Banking security concerns
advantage of the benefits offered by wireless and the rise of malware and implementing a technique
communication technologies like cell phones, and create that uses both static and dynamic evaluation to
a single customerfocused services model . identify security-sensitive and harmful app
behaviours. To do this, a prototype was put into use for
In this method of CAPTCHA technique, OCR software evaluation utilising a variety of apps gathered
can be used to extract data from the image. After learning
about the security flaws in mobile and internet banking, from Internet. After comparing the outcomes of the
it is crucial to implement security risk mitigation suggested ways for handling permission management
measures. Extended validation SSL certificates are on Banking, it was discovered there was only a one
replacing normal SSL certificates for encryption and remote server .
digital certificates. login with a user name and password. A security seems to be a bond or another type of
The two-factor authentication methods, One-Time credit tool such is negotiable and has financial impact.
Password and CAPTCHA, give an extra layer of security For each transaction an OTP(One Time Password)
to secure logins . was being routed on user , that is which you must then
The risks associated with banking transactions make enter and confirm the transaction .It mean your
them one of the most important activities to support these information/ data is protected from all malware /
transactions a secure mechanism is required less than 3 cyber-attacks. Here are the some keywords which had
kb of ram are used throughout the encryption procedure been used so far "Mobile Banking, SMS Protocol,
and the overall delay is less than 015 seconds the average GPRS Protocol". Global System for Mobile
time to compress and decompress a message is 037 and communication as a standalone medium for
036 seconds respectively interceptors are unable to transporting packet data without overlying integrity
quickly access sms banking messages although there is a guidelines has proven highly susceptible to some
chance that attackers will succeed in obtaining the data it security attacks Global System for Mobile
is presented as ciphertext making it difficult for them to communication statistics is vectorized, combusted,
decipher it the smart phone client is responsible for SMS sending over a channel together with 2 different other
message encryption whilst financial institution generates torrents of metadata. We have provided solutions by
the encryption and maintains the document's enhancing existing bank integration, addressing issues
cryptographic operations . with those implementations, and introducing two
entirely new privacy controls for use with both short
Identification and Compliance Risks, the login
message service and Gsm network mediums .
approach is among the cryptographic algorithms used in

© 2024, IJSREM | www.ijsrem.com | Page 2

 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

The foundation of blockchain technology is 3.Problem Definition

cryptography. A dependable middleman carried out the In case of the existing system the fraud is detected
transactions, and these third parties were in charge of after the fraud is done that is, the fraud is detected after
carrying them out in a secure setting. The most appealing the complaint of the holder. And so the card holder
flexibility of blockchain technology for many industries, faced a lot of trouble before the investigation finish.
including banking, is its key selling point. The blockchain And also as all the transaction is maintained in a log,
might reduce the need for middlemen, save costs, and we need to maintain a huge data, and also now a day's
boost revenue for the financial sector. As a private lot of online purchase are made so we don't know the
network, blockchain will operate on the Ethereum person how is using the card online, we just capture
blockchain. The mobile phone app will use the LMK and the ip address for verification purpose. So there need
the AES-256 method to encrypt the transaction text. With a help from the cyber crime to investigate the fraud.
the use of blockchain technology, which has been To avoid the entire above disadvantage we propose the
incorporated into smart phones, users are now able to system to detect the fraud in a best easy way.
manage their passwords and other sensitive information. 4.Proposed system
This algorithm has the capacity to detect and block such In this system ,we present a hidden morkov
efforts. model(AUTO ENCODER, LOCAL OUTLIER
FACTOR, KMEANS CLUSTERING) Which does
To create safe mobile apps, Markova developed a
not required fraud signatures and yet is able to detect
methodology based on a service-oriented architecture
frauds by considering a cardholder's spending habit.
(SOA).
Card transaction processing sequence by the
The XML Key Management Specification (XKMS)
stochastic process of an AUTO ENCODER, LOCAL
framework for authentication and data encryption, as well
OUTLIER FACTOR, KMEANS CLUSTERING.
as the RSA (Rivest-Shamir-Adleman) algorithm, are
The details of items purchased in individual
required by the model. An enhancement over the
transactions are usually not known to an FDS running
ElGamal encryption method is the Diffie-Hellman
at the bank that issues UPI Transactions to the
Integrating Encryption Method, which combines public
cardholder. Hence, we feel that AUTO ENCODER,
key cryptography with symmetric key encryption hashing
LOCAL OUTLIER FACTOR, KMEANS
algorithms and MAC codes to create an integrated
CLUSTERING is an ideal choice for addressing this
scheme. Nowadays, many individuals have a checking
problem. Another important advantage of the AUTO
account and use cell phones, which are accessible to
ENCODER, LOCAL OUTLIER FACTOR,
practically everyone, to handle their finances remotely. In
KMEANS CLUSTERING based approach is a drastic
the suggested system, a client must visit the bank and
present the following data in order to create a bank reduction is the number reduction in the number of
account: a current e - mail address (or contact false positives transactions identified a malicious by
an FDS although they are actually genuine . An FDS
information), a backup email address (or mobile number),
a primary password, and additional personal data. If the runs at a UPI Transaction issuing bank. Each incoming
transaction is submitted to the FDS for verification.
client is in danger, the backup e - mail and password are
FDS receives the card details and the values if
utilised. The bank will thereafter issue the customer a
purchases to verify, whether the transaction is genuine
personal phone that is needed to verify ownership of the
or not.
Account ala through the registration procedure SMS to a
bank through short meassaging services allows the bank The types of goods that are bought in that
to receive the commands you submit text and images can transaction are not known to the FDS. It tries to find
be sent and recieved by MMS from a bank or customer nay anomaly in the transaction based on the spending
they cam be run wirelessly and only required a brief profile of the cardholder, shipping address, shipping
address.
linkage to the bank s system in order obtain information
and complete a transaction.in this theis ,we have to
maintain MMS based secure mobile banking with
minimal cost using streganigraphy and cryptography
methods .

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 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930
5. COMPREHENSIVE ANALYSIS

1: DETAILED DESCRIPTION OF METHODOLOGIES PROPOSED BY VARIOUS AUTHORS

S.No Authors Brief Methodology Description

01 A. Abdulkareem [1] SMS are encrypted using the Playfair Technique on mobile phone.

Advanced Encryption Standard (AES) algorithm for encryption of data and

02 . Beza
least significant bit (LSB) algorithm to hide the encrypted data in a image

ElGamal algorithm which is used to encrypt and decrypt the data using
03 M. Abdurohman [17]
asymmetric key in SMS banking.

L. Nosrati & A. Massoud

04 DES, Triple-DES, Blowfish
[9]

M. Fahim Naseri & Symmetric encryption algorithm AES and asymmetric encryption algorithm
05
Dushyant Sing [8] ECC.

Security of the mobile banking performs the remote banking but security
06 K. Chikomo & A. Arnab
shortfalls in mobile banking

07 L. Nosrati [11] Different Encryption Algorithms for Security of Mobile-Banking

Advanced technology and wireless technology users are more convenience

08 J. Ibrahim [10] to do their financial services through mobile banking security system. New
technology has made people to access to the internet much easier.

Biometric recognition systems developed for mobile devices One-time

N. Yildirim & A. varol
09 password (OTP) and biometric features like fingerprint & voice or facial
[3]
recognition must be used.

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 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

6. Challenges: Authentication and Authorization: Authentication

Technical obstacles, financial constraints and security and authorization are two of the most important
concerns are all challenges. WAP proved to be too security measures for banks. Banks must use strong
expensive and slow to satisfy the expectations of the authentication and authorization measures to ensure
consumer. People think about assurance. that only authorized personnel can access sensitive
information.
Lack of a primary objective and a distinct institutional
framework interfere with activity, causing a negative Data Encryption: Encrypting sensitive data is an
response in the network's internal and exterior parts. essential security measure for banks. Data encryption
The fact that costs outweigh advantages makes it difficult for hackers to access sensitive
is biggest mobile banking's issue. The expense of key information and can help protect the bank’s customers.
Physical Security Measures: Physical security
measures such as CCTV cameras and access control
systems are essential for protecting banks from
external threats.
exchange prevents the growth of mobile banking in
many nations. Network Security: Network security measures such
as firewalls and intrusion detection systems can help
protect banks from cyberattacks.
7. DISCUSSIONS:
User Education and Awareness: User education and
There are several types of encryption algorithms that awareness is an important security measure for banks.
can be used, each with their own strengths and Banks must educate their customers and staff about
weaknesses. Some commonly used algorithms include good security practices and the risks posed by
AES (Advanced Encryption Standard), RSA (Rivest- cyberattacks.
Shamir-Adleman), and Blowfish. The experimental
results of the analysis of banking security methods One of the main challenges with using data
revealed that the security in the banking application has encryption is the management of the decryption keys.
been increased and less prone to the cyber-attacks and These keys must be kept secure and should only be
there is a improvement in performance of tasks in terms accessible to authorized individuals, as anyone with
of resource utilization and time complexity. The access to the decryption key will be able to read the
experimental results indicated that the discussed encrypted data. This can be a particular challenge in
algorithms and techniques could reduce the time the banking industry, where there may be a large
processing of task by up to 15%.by using the machine number of employees who need access to sensitive
learning technique we have able to improve the accuracy information on a regular basis.
for testing the security of the banking application.
In most cases, end-to-end encryption is used to encrypt
SMS messages. SMS messages are encrypted using a
specific encryption technique, such as AES, on the
sending device before being sent. The encrypted message
is subsequently delivered to the receiver, who can then
decrypt it using a key that was securely exchanged
between them.

Risk Analysis: Analyzing the risks posed to banks by

external and internal threats is essential for maintaining
security in the banking sector. Risk analysis can help
identify vulnerabilities and take preventive measures to
reduce risk.
Fig. 1. Flow chart of banking system

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 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

System Based on Elliptic Curve Integrated Encryption

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 International Journal of Scientific Research in Engineering and Management (IJSREM)
Volume: 08 Issue: 04 | April - 2024 SJIF Rating: 8.448 ISSN: 2582-3930

[14] Tibabu Beza, “Secure Mobile Banking Frame Work

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