Assignment Task

Overview

The migration of business to the Internet and the electronic monetary transactions that occur in the continuously growing cashless economy have made the accurate detection of fraud a significant factor in securing such transactions. Credit card fraud occurs when a thief uses credit card information to complete purchase processes without permission from the credit card owner. The large-scale use of credit cards and the lack of effective security systems result in billion-dollar losses to credit card fraud. Because credit card firms are typically unwilling to announce such facts, it is difficult to obtain a precise approximation of the losses.

Problem Statement

Billions of dollars of loss are caused every year by fraudulent credit card transactions. Fraud is as old as humanity itself and can take an unlimited variety of different forms. The PwC global economic crime survey of 2017 suggests that approximately 48% of organizations experienced economic crime. Therefore, there is a definite need to solve the problem of credit card fraud detection. Moreover, the development of new technologies provides additional ways in which criminals may commit fraud. The use of credit cards is prevalent in modern-day society, and credit card fraud has been increasing in recent years. Huge financial losses from fraudulent activities affect not only merchants and banks but also individual credit card users. Fraud may also affect the reputation and image of a merchant, causing non-financial losses that, though difficult to quantify in the short term, may become visible in the long period. For example, if a cardholder is a victim of fraud with a certain company, they may no longer trust that business and choose a competitor.