Statistical and Spending Behavior based Fraud Detection of Card-based Payment System

Briant Teh, Md Baharul Islam, Naresh Kumar, Md Kabirul Islam, Umapathy Eaganathan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Citations (Scopus)

Abstract

The occurrence of credit and debit card fraud has been a growing issue in the past years, not least due to the increased prevalence of card payments. This results in billions of dollars of lost revenue every year. The fraud preventative measures still show room for improvement. In this paper, we present an alternative fraud detection technique in the form of a rudimentary fraud detection system that utilizes consumer spending behavior. Three attributes of a transaction, namely time, amount, and geographical location, were used as a basis to build a consumer profile. Data for these attributes would be collected from each transaction made by the cardholder and would be used to calculate various statistical values pertaining to their spending patterns, which is used to calculate the probability of fraud. Experimental results show that the aspect of consumer spending behavior can be quantified and used to accurately calculate various probability values related to transactions and possibility of fraud.

Original languageEnglish
Title of host publicationProceedings - 2nd 2018 International Conference on Electrical Engineering and Informatics, ICELTICs 2018
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages78-83
Number of pages6
ISBN (Electronic)9781538661406
DOIs
Publication statusPublished - 27 Nov 2018
Externally publishedYes
Event2nd International Conference on Electrical Engineering and Informatics, ICELTICs 2018 - Banda Aceh, Aceh, Indonesia
Duration: 19 Sept 201820 Sept 2018

Publication series

NameProceedings - 2nd 2018 International Conference on Electrical Engineering and Informatics, ICELTICs 2018

Conference

Conference2nd International Conference on Electrical Engineering and Informatics, ICELTICs 2018
Country/TerritoryIndonesia
CityBanda Aceh, Aceh
Period19/09/1820/09/18

Keywords

  • attributes
  • credit/debit card
  • online security
  • secure payment
  • statistics

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