Scribd
Upload
26 views3 pages

Mini Project

mini project

Uploaded by

gudalasubbu143
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
26 views3 pages

Mini Project

mini project

Uploaded by

gudalasubbu143
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Department of Information Technology

Minor Project
IV B Tech I Semester [2021 – 2025]

Project Title: Fraud Detection in Online


Payments.

Student Name:
A. Tejaswini -21EG112C01
P.Shireesha -21EG112C38

Guide Name
Dr. Niteesha Sharma
Problem Statement:
Online payment systems are increasingly vulnerable to fraudulent activities, which can lead to
substantial financial losses and damage to user trust. Detecting fraudulent transactions in real-
time is crucial to mitigate these risks and protect legitimate users. The goal of this project is to
develop a robust machine learning model that can accurately identify fraudulent transactions
from a dataset of online payment transaction.

Abstract:
Online transaction fraud is a simple and easy target. E-commerce and other online sites have
increased the number of online payment methods, raising the danger of online fraud. With the rise
in fraud rates, machine learning approaches can be used to identify and evaluate fraud in online
transactions. The primary goal of this project is to implement machine learning models for fraud
detection, with the goal of analyzing prior transaction information. Where transactions are
classified into distinct groups based on the type of transaction. Following that, various classifiers
are trained independently, and models are assessed for correctness. The classifier with the highest
rating score can then be picked as one of the best approaches for predicting fraud.

Introduction:
Detecting fraud in online payments is a critical challenge in today's digital economy, where
financial transactions occur at a rapid pace across various platforms. Machine learning has
emerged as a powerful tool in this realm, offering sophisticated techniques to identify and
prevent fraudulent activities in real time.

By leveraging machine learning algorithms, we can analyze vast amounts of transactional data to
discern patterns indicative of fraudulent behaviour. These algorithms can detect anomalies, such
as unusual purchasing patterns or irregularities in user behaviour, that may signify fraudulent
activities. This proactive approach not only helps in mitigating financial losses but also enhances
security measures to safeguard both businesses and consumers.

The key objectives of using machine learning for fraud detection in online payments are:

1. Detection Accuracy: Achieving high accuracy in identifying fraudulent transactions


while minimizing false positives is crucial to prevent financial losses and maintain
customer trust.
2. Real-Time Detection: Implementing algorithms that can swiftly analyze incoming
transactions in real time, allowing for immediate action to be taken upon detection of
suspicious activities.
3. Scalability: Developing scalable machine learning models capable of handling large
volumes of transaction data efficiently as online payment volumes continue to grow.
4. Adaptability: Building models that can adapt to evolving fraud patterns and tactics used
by fraudsters, ensuring robust protection against emerging threats.
5. Cost Efficiency: Optimizing the balance between detection accuracy and computational
resources required, ensuring cost-effective implementation and operation of fraud
detection systems.

Existing System:
To detect counterfeit transactions, some machine learning algorithms were presented and
implemented. There are many measures is used to evaluate the performance of classifiers or
predictors such as Gradient Boost classifier, vector machine, random forest etc. Furthermore,
these techniques are used in online fraud detection mechanisms and the results of these
algorithms are compared.

Proposed System:
When comparing traditional machine learning algorithms (K-means, SVM, Random Forest) with
Convolutional Neural Networks (CNNs) for fraud detection in online payments: K-means and
SVM excel in clustering and classification tasks but may struggle with complex, non-linear fraud
patterns. Random Forest offers robustness and interpretability but may require feature
engineering. CNNs, adapted for sequential data, capture intricate patterns automatically but
demand more computational resources and labeled data, making them suitable for complex fraud
detection scenarios where deep learning capabilities are advantageous. This algorithm is a
heuristic approach used to solve high complexity computational problems.

Software & Hardware Requirements:


Operating system: Windows
IDE: Anaconda IDE
Programming language : python.

You might also like