Software Requirements Specification (SRS)

on
Credit Card Fraud Detection System

By
Ashutosh Kumar Tripathi
2008390100018
2008390100018@reck.ac.in
CSE(III)

Department of Computer Science and Engineering

Rajkiya Engineering College, Kannauj
Uttar Pradesh-209732
1 Introduction
The Credit Card Fraud Detection System is a software application designed to detect and
prevent credit card fraud. It is aimed at financial institutions, banks, and credit card issuers
who want to enhance their fraud detection capabilities and protect their customers from
fraudulent activities. The system will analyze credit card transactions in real-time and
identify suspicious transactions based on various patterns and algorithms.

Figure 1: Basic SRS Document Outline

2 Scope
The Credit Card Fraud Detection System will be a web-based application that integrates
with the existing credit card processing system of the financial institution. It will analyze
credit card transactions in real time, assess the risk associated with each transaction, and
generate alerts for suspicious transactions. The system will also provide a user-friendly
interface for the fraud detection team to review alerts, investigate suspicious transactions,
and take appropriate actions

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3 Functional Requirements

3.1 User Authentication

The system shall provide secure user authentication to ensure that only authorized users
can access the system. Authentication methods may include username/password, two-factor
authentication, or other industry-standard methods.

3.2 Transaction Data Collection

The system shall collect transaction data from the credit card processing system, including
transaction amount, cardholder information, merchant information, transaction timestamp,
and other relevant data.

3.3 Fraud Detection Algorithms

The system shall implement advanced fraud detection algorithms to analyze transaction data
and identify suspicious transactions. These algorithms may include rule-based detection,
anomaly detection, machine learning algorithms, or a combination of these methods.

3.4 Risk Assessment

. The system shall assess the risk associated with each transaction based on predefined
rules and algorithms. The risk assessment may take into consideration factors such as trans-
action amount, transaction location, transaction frequency, cardholder behavior, merchant
reputation, and other relevant factors.

3.5 Alert Generation

The system shall generate alerts for suspicious transactions based on the risk assessment
results. Alerts may be generated in real-time or in batches, and they shall include relevant
transaction details, risk scores, and other relevant information.

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3.6 Alert Review and Investigation

The system shall provide a user-friendly interface for the fraud detection team to review
alerts, investigate suspicious transactions, and take appropriate actions. The interface may
include features such as sorting and filtering alerts, viewing transaction details, adding com-
ments, and updating alert statuses.

3.7 Alert Resolution

The system shall provide options for the fraud detection team to resolve alerts, including
marking alerts as false positives, escalating alerts for further investigation, or taking other
appropriate actions based on the investigation results.

3.8 Reporting

The system shall generate reports on alert statistics, detection accuracy, and other relevant
metrics to support fraud detection performance evaluation and system improvement.

4 Non-functional Requirements

4.1 Performance

The system shall be able to process a large number of transactions in real time with minimal
delay. The response time for generating alerts and displaying transaction details shall be
within acceptable limits to ensure efficient fraud detection and investigation.

4.2 Security

The system shall implement robust security measures to protect transaction data and user
authentication. This may include data encryption, access control, and audit logging to
comply with industry standards and regulations.

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4.3 Reliability

The system shall be highly reliable and available, with minimal downtime to ensure uninter-
rupted fraud detection operations. Backups of transaction data and system configurations
shall be regularly performed to prevent data loss and system failure.

4.4 Scalability

The system shall be designed to be scalable to handle increasing transaction volumes and
growing user requirements. The system architecture and database design shall allow for easy
expansion and upgrades without disrupting the system’s performance and availability.

4.5 Usability

The system shall have a user-friendly interface that is easy to use and understand. The
interface shall provide relevant information and features for the fraud detection team to
effectively review alerts, investigate suspicious transactions, and take appropriate actions.

5 External Interface Requirements

5.1 User Interfaces

The Credit Card Fraud Detection System shall provide a user-friendly web-based interface
for the fraud detection team to review alerts, investigate suspicious transactions, and take
appropriate actions. The user interface shall be intuitive, responsive, and accessible from
various devices, including desktops, laptops, and mobile devices. It shall include features such
as sorting and filtering alerts, viewing transaction details, adding comments, and updating
alert statuses.

5.2 Credit Card Processing System Interface

The Credit Card Fraud Detection System shall integrate with the existing credit card process-
ing system of the financial institution to collect transaction data in real-time. The interface

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shall be designed to securely retrieve transaction data, including transaction amount, card-
holder information, merchant information, transaction timestamp, and other relevant data.
The interface shall follow industry-standard protocols and security measures to ensure the
confidentiality and integrity of the data exchange.

5.3 Alert Notification Interface

The Credit Card Fraud Detection System shall have the ability to send alert notifications
to the fraud detection team when suspicious transactions are detected. The interface shall
support various notification methods, such as email, SMS, or other communication channels,
and shall allow for customization of notification preferences, including the type of alerts,
recipients, and frequency of notifications.

5.4 Reporting Interface

The Credit Card Fraud Detection System shall generate reports on alert statistics, detec-
tion accuracy, and other relevant metrics for fraud detection performance evaluation and
system improvement. The reporting interface shall provide customizable report templates,
scheduling options, and export capabilities to commonly used file formats, such as PDF or
Excel.

5.5 Authentication Interfaces

The Credit Card Fraud Detection System shall integrate with external authentication sys-
tems to ensure secure user authentication. The interface shall support industry-standard
authentication methods, such as username/password, two-factor authentication, or other
authentication mechanisms as required by the financial institution’s security policies. The
authentication interface shall be designed to protect against unauthorized access and ensure
the confidentiality and integrity of user credentials.