Fraud Detection in Credit Card Transactions by using Classification Algorithms

In today's economy, Use of Credit cards facilitate people to do purchase of goods and services. People splurge on shopping using credit cards. Credit cards have become inevitable, since the world is moving towards digitized and paperless transactions. Any time transactions, online shopping and paperless system are the need of hour. As the number of credit card users are increasing day by day, there is eventually increase in significant fraudulent activities. In this paper, we are comparing different classification algorithms, which classifies credit card transaction's data as fraudulent or not. Supervised classification algorithms such as Decision tree, Random forest and Support Vector Machines (SVM) are used to correctly classify the data and also their accuracy is tabulated. © 2017 IEEE.