Credit Card Fraud Detection using Hidden Markov Model

Interesting mechanism for detecting credit card fraud using hidden Markov model is described in IEEE Transactions on Dependable and Secure Computing, September 2007, (here). In conclusion, it says:

In this paper, we have proposed an application of Hidden Markov Model in credit card fraud detection. The different steps in credit card transaction processing are represented as the underlying stochastic process of an HMM. We have used the ranges of transaction amount as the observation symbols, while the types of item have been considered to be states of the HMM. We have suggested a method for finding the spending profile of cardholders as well as application of this knowledge in deciding the value of observation symbols and initial estimate of the model parameters. It has also been explained how the HMM can detect whether an incoming transaction is fraudulent or not. Experimental results show the performance and effectiveness of our system and demonstrate the usefulness of learning the spending profile of the cardholders. Comparative studies reveal that the Accuracy of the system is close to 80% over a wide variation in the input data. The system is also scalable for handling large volumes of transactions.

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22 Responses

  1. amit

    sir.i m engg.student ,i donot hv any pdf files in creadit card fraud detection using hmm so so i request to u that u will send me some pdf and document @ this.

  2. krish

    i’m a engg student…its my 2 nd yr project…i dont hve enough detail abt credit card fraud detection using HMM…could u plz gve som basic idea abt tat project

  3. Selva

    Helllo sir, i’ve selected this paper as my final semester project, i’m doing MCA. i need ur guidance in doing this paper! help me

  4. ruby

    i am a final year engg student doing cse i have chosen this paper as my final year project so could u help me with this topic and send me more details regarding this.

  5. raj

    hi sir.. i need credit card fraud detection using hidden markov model project modules details.. am a final year year BE student.. just tell modules and it details in ms word format

  6. Priya

    hello sir, i am doing this credit card fraud detection using hmm as my final yr proj. so can u say me what are the problems faced in this model.. send me module details

  7. sijas

    hello sir,i am doing my project as credit card fraud detection
    using HMM.Can u send me what r the modules,problems faced in this module.

  8. mahesh

    sir can u plz send me the description on this topic of credit card fraud detection usng hmm as it is my final yr proj for eng..

  9. priya

    sir, i’m had choosen this project as my final yr project. so i need ur guidence and support. plz send me the details and materials plzz….

  10. Nagaraju

    Sir i’m studying fial year. I’m doing project on Credit Cartd fraud detecion using HMM. I don’t have a source code for this project, so plz send me a source code for Credit Cartd fraud detecion using HMM.

  11. Akshaya

    Hi sir, i had chosen this topic “Credit Card Fraud Detection using HMM” as my final yr project. so i need ur guidence and support. Could u plz send me the details about the modules and materials plz…..

  12. swetha

    sir i hav choosen dis paper as my final yr project can u plz help how to start dis project and wat r screen shots for dis project

  13. Priyanka soni

    sir m doing mca .I need complet I need complete project on cerdit card fraud detection method i want to make this project help for the project plzzz sir help me….
    Thank you….

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