Real-Time Credit-Card Fraud Detection using Artificial Neural Network Tuned by Simulated Annealing Algorithm
(2014)Abstract
Now-a-days, Internet has become an important part of human’s life, a person
can shop, invest, and perform all the banking task online. Almost, all the organizations have
their own website, where customer can perform all the task like shopping, they only have to
provide their credit card details. Online banking and e-commerce organizations have been
experiencing the increase in credit card transaction and other modes of on-line transaction.
Due to this credit card fraud becomes a very popular issue for credit card industry, it causes
many financial losses for customer and also for the organization. Many techniques like
Decision Tree, Neural Networks, Genetic Algorithm based on modern techniques like
Artificial Intelligence, Machine Learning, and F
uzzy Logic h
ave been already developed for
credit card fraud detection. In this paper, an evolutionary Simulated Annealing algorithm is
used to train the Neural Networks for Credit Card fraud detection in real-time scenario.
This paper shows how this technique can be used for credit card fraud detection and
present all the detailed experimental results found when using this technique on real world
financial data (data
are taken from UCI repository) to show the effectiveness of this
technique. The algorithm used in this paper are likely beneficial for the organizations and for individual users in terms of cost and time efficiency. Still there are many cases which are misclassified i.e. A genuine customer is classified as fraud customer or vise-versa.