Credit Card Fraud Detection Using Hidden Markov Model
Keywords:
Hidden Markov Models (HMMs), online shopping, credit card security, e-commerce fraud detectionAbstract
There has been a remarkable growth in the use of credit cards in recent years. If you're shopping online or in person, you're more likely to be targeted by fraudsters who use credit cards. Using a Time in homogeneous hidden Bernoulli model (THBM), we demonstrate how this model may be utilised to identify fraud in credit card transaction processing. At the beginning of its training process, an HMM learns from the typical behaviour of a cardholder. If the prepared HMM rejects an approaching Visa exchange with an adequately high likelihood, it is viewed as deceitful. Simultaneously, we work to ensure that authentic exchanges are not rejected. In order to demonstrate the efficacy of our method and compare it to other strategies accessible in the literature, we conduct extensive experiments.
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Copyright (c) 2022 Ravi Kumar Poluru, Kumar Raja D R
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