STATEMENT OF THE PROBLEM
It has already been mentioned that the losses of a credit card fraud can affect all consumers, merchants and issuing banks. Therefore, it is important to establish techniques for detecting and preventing credit card fraud. This research contains a variety of techniques which can be used to build fraud detection systems. Understanding the characteristics of all those techniques can be a tedious task. A technique which promises a high predictive accuracy may be an appealing candidate to be used in the fraud detection system. However, there are various different parameters that need to be considered before deciding which technique best suits the needs of a particular situation. And also as all the transaction is maintained in a log. And also now a day’s lot of online purchase are made so we don’t know the person how is using the card online, we just capture the IP address for verification purpose. So there is a need to develop a system to fight cyber -crime and to aid in investigating the fraud. To avoid the entire above disadvantage we propose the system to detect the fraud in a best and easy way.
Background of the study
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