Abstract:

Credit card fraud events take place frequently and then result in huge financial losses. Criminals can use some technologies such as Trojan or Phishing to steal the information of other people’s credit cards. Therefore, an effective fraud detection method is important since it can identify a fraud in time when a criminal uses a stolen card to consume. One method is to make full use of the historical transaction data including normal transactions and fraud ones to obtain normal/fraud behavior features based on machine learning techniques, and then utilize these features to check if a transaction is fraud or not. In this paper, Machine Learning algorithm is used to train the behavior features of normal and abnormal transactions. We implement this using Random forest machine learning algorithm in Open CV and analyze the performance on credit fraud detection.