Abstract
Now a day the usage of credit
cards has dramatically increased. As credit card becomes the most popular mode
of payment for both online as well as regular purchase, cases of fraud
associated with it are also rising. In this paper, we model the sequence of
operations in credit card transaction processing using a Hidden Markov Model
(HMM) and show how it can be used for the detection of frauds. An HMM is
initially trained with the normal behavior of a cardholder. If an incoming
credit card transaction is not accepted by the trained HMM with sufficiently
high probability, it is considered to be fraudulent. At the same time, we try
to ensure that genuine transactions are not rejected. We present detailed
experimental results to show the effectiveness of our approach and compare it
with other techniques available in the literature.
Credit-card-based
purchases can be categorized into two types: 1) physical card and 2) virtual
card. In a physical-card based purchase, the cardholder presents his card physically
to a merchant for making a payment. To carry out fraudulent transactions in
this kind of purchase, an attacker has to steal the credit card. If the
cardholder does not realize the loss of card, it can lead to a substantial
financial loss to the credit card company. In the second kind of purchase, only
some important information about a card (card number, expiration date, secure
code) is required to make the payment. Such purchases are normally done on the
Internet or over the telephone. To commit fraud in these types of purchases, a
fraudster simply needs to know the card details. Most of the time, the genuine
cardholder is not aware that someone else has seen or stolen his card
information. The only way to detect this kind of fraud is to analyze the
spending patterns on every card and to figure out any inconsistency with
respect to the “usual” spending patterns. Fraud detection based on the analysis
of existing purchase data of cardholder is a promising way to reduce the rate
of successful credit card frauds. Since humans tend to exhibit specific
behaviorist profiles, every cardholder can be represented by a set of patterns
containing information about the typical purchase category, the time since the
last purchase, the amount of money spent, etc. Deviation from such patterns is
a potential threat to the system.
Modules
- New card
- Login
- Security information
- Transaction
- Verification
Module Description
New
card
In this module, the customer gives there information
to enroll a new card. The information is all about there contact details. They
can create there own login and password for there future use of the card.
Login
In Login Form module presents site visitors with a
form with username and password fields. If the user enters a valid
username/password combination they will be granted access to additional
resources on website. Which additional resources they will have access to can
be configured separately.
Security
information
In Security information module it will get the
information detail and its store’s in database.
If the card lost then the Security information module form arise. It has
a set of question where the user has to answer the correctly to move to the
transaction section. It contain informational privacy and informational
self-determination are addressed squarely by the invention affording persons
and entities a trusted means to user, secure, search, process, and exchange
personal and/or confidential information.
Transaction
The method and apparatus for pre-authorizing
transactions includes providing a communications device to a vendor and a
credit card owner. The credit card owner initiates a credit card transaction by
communicating to a credit card number, and storing therein, a distinguishing
piece of information that characterizes a specific transaction to be made by an
authorized user of the credit card at a later time. The information is accepted
as "network data" in the data base only if a correct personal identification
code (PIC) is used with the communication. The "network data" will
serve to later authorize that specific transaction. The credit card owner or
other authorized user can then only make that specific transaction with the
credit card. Because the transaction is pre-authorized, the vendor does not
need to see or transmit a PIC.
Verification
Verification information is provided with respect to
a transaction between an initiating party and a verification-seeking party, the
verification information being given by a third, verifying party, based on
confidential information in the possession of the initiating party. In
verification the process will seeks card number and if the card number is
correct the relevant process will be executed. If the number is wrong, mail
will be sent to the user saying the card no has been block and he can’t do the
further transaction.
EXISTING SYSTEM:
In case of the existing system each
and every system are considered as a trusted computer. And so the attacker
finds it easy to attack the system with fake signals. And also in the emerging
network where many are used for some good propos.And in those there a lot of
chance for the attacker to send unwanted information. In case of the fire
alarm, if all the system are considered as trusted they could send false alarm
where it lead to a heavy loss. And so we need a system to protect it. Hence we
develop a new system.
PROPOSED SYSTEM:
The proposed system we introduce a
new technology to protect the network. This is achieved by the following way.
Realizing widespread adoption of such applications
Mandates sufficiently trustworthy computers that can
be realized at low cost. Apart from facilitating deployment of futuristic
applications, the ability to realize trustworthy computers at low cost can also
addresses many of the security issues that plague our existing network
infrastructure. Although, at first sight, “inexpensive” and “trustworthy”
May seem mutually exclusive, a possible strategy is
to reduce the complexity of the components inside the trusted boundary. The
often heard statement that “complexity is the enemy of security” is far from
dogmatic. For one, lower complexity implies better verifiability of compliance.
Furthermore, keeping the complexity inside the trust boundary at low levels can
obviate the need for proactive measures for heat dissipation. Strategies
constrained to simultaneously facilitate shielding and heat dissipation tend to
be expensive. On the other hand, unconstrained shielding strategies can be
reliable and inexpensive to facilitate.
System
Requirement Specification:
Hardware Requirements:
• I2
Processor and Above
• RAM
1GB and Above
• HDD
20 GB Hard Disk Space and Above
Software Requirements:
• WINDOWS
OS (XP service pack 2 /windows 2007 Server)
• Visual
Studio .Net 2008(according requirement)
• Visual
Studio .Net Framework (Minimal for Deployment)
• SQL
Server 2008(according requirement) Enterprise Edition
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