Risk management of counterfeit cards fraud: An empirical study of challenges among South Asian financial institutions

Masteroppgave International Business and Marketing - Nord universitet 201

Credit Card Fraud Detection Using Logistic Regression and Synthetic Minority Oversampling Technique (SMOTE) Approach

Financial fraud is a serious threat that is expanding effects on the financial sector. The use of credit cards is growing as digitization and internet transactions advance daily. The most common issues in today\u27s culture are credit card scams. This kind of fraud typically happens when someone uses someone else\u27s credit card details. Credit card fraud detection uses transaction data attributes to identify credit card fraud, which can save significant financial losses and affluence the burden on the police. The detection of credit card fraud has three difficulties: uneven data, an abundance of unseen variables, and the selection of an appropriate threshold to improve the models\u27 reliability. This study employs a modified Logistic Regression (LR) model to detect credit card fraud in order to get over the preceding difficulties. The dataset sampling strategy, variable choice, and detection methods employed all have a significant impact on the effectiveness of fraud detection in credit card transactions. The effectiveness of naive bayes, k-nearest neighbour, and logistic regression on highly skewed credit card fraud data is examined in this research. The accuracy of the logistic regression technique will be closer to 0.98%; with this accuracy, frauds may be easily detected. The fact that LR receives the highest classifier score illustrates how well LR predicts credit card theft

CONTACTLESS PAYMENTS FRAUD DETECTION METHODS AND IS SOCIETY PREPARED TO RESIST: A CASE STUDY

The ability to use contactless payment technologies, non-cash payments and credit card payments is becoming almost an essential requirement for consumers and merchants in today's economic conditions. Different market sectors are rapidly adapting to these technologies and looking for the most convenient, secure, and fastest possible solutions that combine intelligent data processing, security, and business management functions. Millions of debit and credit card holders care about secure payments, the businesses that receive these payments are secure in terms of security, and the operators that process such incoming and outgoing payments are interested in innovative solutions that set them apart from the competition. Amid the COVID-19 pandemic, when e-commerce was growing exponentially, the global market for fraud detection and prevention, currently stands at USD 20.9 billion, and is expected to grow, until 2025 will rise to USD 38.2 billion by the end of the year; holds the market at 12.8 % annually. The US remains the dominant region in this market segment, but European countries are also increasingly investing in fraud prevention and detection solutions, which are growing in demand in Europe due to an increase in cybercrime as well as advanced bots and cyber-attack.

RADAR: A Lightweight Tool for Requirements and Architecture Decision Analysis

Uncertainty and conflicting stakeholders' objectives make many requirements and architecture decisions particularly hard. Quantitative probabilistic models allow software architects to analyse such decisions using stochastic simulation and multi-objective optimisation, but the difficulty of elaborating the models is an obstacle to the wider adoption of such techniques. To reduce this obstacle, this paper presents a novel modelling language and analysis tool, called RADAR, intended to facilitate requirements and architecture decision analysis. The language has relations to quantitative AND/OR goal models used in requirements engineering and to feature models used in software product lines. However, it simplifies such models to a minimum set of language constructs essential for decision analysis. The paper presents RADAR's modelling language, automated support for decision analysis, and evaluates its application to four real-world examples

End-to-end neural network architecture for fraud scoring in card payments

[EN] Millions of euros are lost every year due to fraudulent card transactions. The design and implementation of efficient fraud detection methods is mandatory to minimize such losses. In this paper, we present a neural network based system for fraud detection in banking systems. We use a real world dataset, and describe an end-to-end solution from the practitioner's perspective, by focusing on the following crucial aspects: unbalancedness, data processing and cost metric evaluation. Our analysis shows that the proposed solution achieves comparable performance values with state-of-the-art proprietary and costly solutions. (c) 2017 Elsevier B.V. All rights reserved.Gomez, J.; Arévalo, J.; Paredes Palacios, R.; Nin, J. (2018). End-to-end neural network architecture for fraud scoring in card payments. Pattern Recognition Letters. 105:175-181. https://doi.org/10.1016/j.patrec.2017.08.024S17518110

False Positives in Credit Card Fraud Detection: Measurement and Mitigation

Credit Card Fraud Detection is a classification problem where different types of classification errors cause different costs. Previous works quantified the financial impact of data-driven fraud detection classifiers using a cost-matrix based evaluation approach, however, none of them considered the significant financial impact of false declines. Analysts reported that fraud prediction in e-commerce still has to deal with false positive rates of 30-70%, and many cardholders reduce card usage after being wrongly declined. In our paper, we propose a new method for assessing the cost of false declines and evaluate several state-of-the-art fraud detection classifiers using this method. Further, we investigate the effectiveness of ensemble learning as previous work supposed that a combination of diverse, individual classifiers can improve performance. Our results show that cost-based evaluation yields valuable insights for practitioners and that our ensemble learning strategy indeed cuts fraud cost by almost 30%

07181 Abstracts Collection -- Parallel Universes and Local Patterns

From 1 May 2007 to 4 May 2007 the Dagstuhl Seminar 07181 ``Parallel Universes and Local Patterns\u27\u27 was held in the International Conference and Research Center (IBFI), Schloss Dagstuhl. During the seminar, several participants presented their current research, and ongoing work and open problems were discussed. Abstracts of the presentations given during the seminar as well as abstracts of seminar results and ideas are put together in this paper. The first section describes the seminar topics and goals in general. Links to extended abstracts or full papers are provided, if available