An Overview of the Bank Fraud and its Detection Techniques Through Data Mining

Abstract

Using modern methods of the electronic commerce in daily life transactions is increasing because of the growth and the comfortable access of the people to the internet and social networks. The electronic payment systems are one of the most important electronic commerce methods and the electronic payment fraud is a major problem.For example, the credit card fraud loss increases every year and is regarded as one of the important issues in the credit card institutes and corporations. Therefore, fraud detection is considered as an important research challenge. Fraud reduction is a complicated process requiring a body of knowledge in many scientific fields. Based on the kind of the fraud the banks or the credit card institutes face, different measures may be taken. This paper compares and analyzes the available recent findings on the credit card fraud detection techniques. The objectives of the present study are first to detect different credit card and electronic commerce fraud and then to investigate the strategies used for the purpose of detection.