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Chapter 1: Introduction: What Is A Credit Card ?

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15 views8 pages

Chapter 1: Introduction: What Is A Credit Card ?

Uploaded by

bunny4693827
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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CHAPTER 1 : INTRODUCTION

WHAT IS A CREDIT CARD ?

 A credit card is issued by a credit card provider, like Capital One, and they are
designed to pay for things in shops or online.

 You can also use credit cards for balance transfers and taking out cash from an ATM.

 You can use your credit card worldwide as they are accepted in millions of places,
There are often fees or charges for using your credit card overseas.

 When you get a credit card you will be given a credit limit. This is the total amount
you have available to spend using the credit card.

 You should always leave some available credit on your credit card for any interest to
be applied.

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Details of all transactions you make will be shown on your statement, along with:

 the minimum amount you must pay

 the date by which your credit card provider must receive at least your minimum
payment

If you do not pay off your balance in full each month, you will be charged interest on the
amount remaining on your account.

Check your credit card agreement to make sure you know how much you will be charged.

WHAT ARE FRAUDULENT TRANSACTIONS ?

 The purpose may be to obtain goods without paying, or to obtain unauthorized funds
from an account.

 Fraudulent transactions are orders and purchases made using a credit card or bank
account that does not belong to the buyer.

 One of the largest factors in identity fraud, these types of transactions can end up
doing damage to both merchants and the identity fraud victim.

 Avoiding fraudulent transactions is in the interest of both merchants and buyers, so it

is important to take proper precautions when managing money accounts .

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WHAT IS FRAUD DETECTION ?

Fraud detection involves monitoring the behaviour of users in order to estimate, detect, or
avoid undesirable behaviour. To counter the credit card fraud effectively, it is necessary to
understand the technologies involved in detecting credit card frauds and to identify various
types of credit card frauds.

The credit card is a small plastic card issued to users as a system of payment. it allows its
cardholder to buy goods and services based on the cardholder's promise to pay for these
goods and services. credit card security relies on the physical security of the plastic card as
well as the privacy of the credit card number. globalization and increased use of the internet
for online shopping has resulted in a considerable proliferation of credit card transactions
throughout the world. thus a rapid growth in the number of credit card transactions has led to
a

substantial rise in fraudulent activities.

Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card as
a fraudulent source of funds in a given transaction. credit card fraudsters employ a large
number of techniques to commit fraud. to combat the credit card fraud effectively, it is
important to first understand the mechanisms of identifying a credit card fraud. over the years
credit card fraud has stabilized much due to various credit card fraud detection and
prevention mechanisms.

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In recent years, the prevailing data mining concerns people with credit card fraud detection
model based on data mining. Since our problem is approached as a classification problem,
classical data mining algorithms are not directly applicable. So an alternative approach is made
by using general purpose meta heuristic approaches like genetic algorithms.

This project is to propose a credit card fraud detection system using genetic algorithm.
Genetic algorithms are evolutionary algorithms which aim at obtaining better solutions as time
progresses. When a card is copied or stolen or lost and captured by fraudsters it is usually used
until its available limit is depleted. Thus, rather than the number of correctly classified
transactions, a solution which minimizes the total available limit on cards subject to fraud is
more prominent. It aims in minimizing the false alerts using genetic algorithm where a set of
interval valued parameters are optimized.

4
Module diagram

Start

New Card

Login

Security Information

Transaction Verification

Stop

5
Object diagram

Login Transaction

Verification Security Info

Complete
Transaction

State diagram

Request Add Login Transa


Information ction

6
Sequence diagram

New Account Login Transaction Verification Security Complete


Transaction
User Info

Login Info

Transaction Details

Security Info

Verification Details

7
Dataflow diagram

Account Details

User Login

Transaction Security

Verifica
tion

Complete
Transaction

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