A

PROJECT REPORT

On

“CREDIT CARD FRAUD

DETECTION” SUBMITTED BY

Panhale Tanvi Santosh Shelke

Pallavi Ramchandra

IN PARTIAL FULLFILLMENT

OF

Bachelorin Computer Application

TYBBA(CA)

Sem-V (ACADEMIC YEAR

2023-24)

DnyaneshwarGramonnati
Mandal’s-Ale,Santwadi&Kolwadi

HON.BALASAHEB JADHAV

ARTS, COMMERCE& SCIENCE

COLLEGE, ALE TAL-JUNNAR, DIST-

PUNE (412411)
 HON. BALASAHEB JADHAV
ARTS, COMMERCE & SCIENCE COLLEGE, ALE
Tal.-Junnar, Dist.-Pune (412411)
ACADEMIC YEAR 2023-24
Department of BBA (CA), B.Sc. (Computer Science), M.Sc. (Computer
Science)

CERTIFICAT
E
This is to certify that Panhale Tanvi Santosh & Shelke Pallavi Ramchandra
had completed the bonafide work of Project of TYBBA(CA) Sem-V having
Exam Seat No./Roll No.-----------during the academic year 2023-24 who
carried out the Projectwork under my supervision.

Project Guide HOD

BBA (CA), B.Sc. (computer science)
&M.Sc. (Computer Science) Department

Internal Examiner External Examiner

 ACKNOWLEDGEMENT

We would like to thanks Hon. Principal Dr. Pravin Jadhav for supporting and

consistently encouraging us all for our academic fulfilments. We wish to thank our department for

permitting me to

use all the facilities available in the institution for my project work.We are grateful to our HOD Prof.

Smt. Joshi N.P. For her encouragement, guidance and supervision of our project work during the year.

We express our thankfulness to her. We must acknowledge the support given to this project by her.

Our classmates have been of great helpers to us during the project work. Our ideas were shaped

and refined progressively through discussionswe have time to time. We cannot miss to thank them all.

There were some persons who were not directly but indirectly involved in our Project work. We

heartily appreciate their contribution and thank them too.

Date: Signature:

Class:TYBBA(Computer Application)
Sem-V
Year: 2023-24
 INDEX
Sr. No. Contents Page No.

1 Introduction

1. Introduction to system.
2. Scope of system.
3. Proposed System

2 Analysis

1. Fact finding technique.

2. Feasibility study.

3. Hardware & Software Requirements

3 System Design

1. E-R Diagram.

2. Context level Diagram.

3. First Level Data flow Diagram.

4. Data Dictionary.

5. Table Design

4 Form Design

1. Input and Output Screens

2. Reports Design

5 Advantages and Limitations of System

6 Future Enhancement

7 Bibliography
Introduction
 Introduction to the
System

Credit card fraud detection is a set of methods

and techniques designed to block fraudulent
purchases, both online and in-store. This is done by
ensuring that you are dealing with the right cardholder
and that the purchase is legitimate.
In the digital age, the financial industry faces
an increasing threat of credit card fraud. This project
introduces a robust credit card fraud detection system
designed to combat fraudulent transactions effectively.
Credit card fraud poses significant risks to both
financial institutions and consumers, making the
development of a reliable detection system crucial.
This report provides an in-depth analysis of the
proposed system.
Various advanced machine learning
technologies are at play, assessing every transaction
and stemming the fraud users in its nip using
behavioral data and transaction patterns.
 Scope of the
System

The scope of the credit card fraud detection

system encompasses all credit card transactions
processed within our organization.
This includes transactions made within
specified geographical regions and through
designated credit card networks.
The system is designed to detect various
forms of fraudulent activities, enhancing our
organization's security measures.
Credit card fraud detection is the collective
term for the policies, tools, methodologies, and
practices that credit card companies and financial
institutions take to combat identity fraud and stop
fraudulent transactions.
 Proposed System

Our proposed credit card fraud detection

system aims to reduce fraudulent transactions,
enhance overall security, and improve customer
trust. The system utilizes cutting-edge technology
and machine learning algorithms to analyze
transaction data in real-time.
By promptly identifying potentially
fraudulent activities, the system empowers our
organization to take immediate action, preventing
financial losses and mitigating risks.
When it comes to identifying the cardholder,
credit card fraud detection relies on authentication
techniques such as MFA (multi-factor authentication),
3DS, biometrics, and OTP (one-time passwords).
However, it is also possible to detect credit
card fraud by looking at anomalies in the transaction.
Analysis
 Fact Finding Techniques

In the system analysis phase, several fact-finding

techniques were employed to gather essential
information about the existing credit card
transaction processing system and to understand
its strengths, weaknesses, and requirements. The
following fact- finding techniques were utilized:

• Interviews:

Interviews were conducted with key stakeholders,

including system users, financial analysts, and IT
personnel. These interviews allowed us to gain
valuable insights into user requirements, pain
points, and expectations. Stakeholder input was
instrumental in shaping the system's features and
functionality.

• Surveys:

Surveys were distributed to a sample of credit card

users to gather feedback on their experiences
with the existing system. Survey responses
provided quantitative data on user satisfaction
and identified areas in need of improvement.
3. Data Analysis:
Extensive data analysis was performed on historical
transaction data. This involved examining
transaction records for patterns, anomalies, and
trends related to fraudulent activities. Data
analysis helped identify common fraud indicators
and informed the design of fraud detection
algorithms.

3. Documentation Review:
Existing documentation, including system manuals,
policy documents, and technical specifications,
was thoroughly reviewed. This helped in
understanding the system's architecture, data
flows, and business processes.
 Feasibility Study

The feasibility study assessed the viability of

implementing the proposed credit card fraud
detection system. It encompassed the following
key aspects:

• Technical Feasibility :

The technical feasibility study examined whether the

required technology and infrastructure were
available or could be readily acquired. It
confirmed that the organization possessed the
necessary hardware and software resources to
support the system's development and operation.
Additionally, it assessed the compatibility of
selected technologies, such as machine learning
frameworks, with existing IT infrastructure.

• Operational Feasibility :

Operational feasibility evaluated whether the proposed

system aligns with user needs, practices, and
organizational processes. It involved consultation
with end-users and relevant stakeholders to
ensure that the system would be seamlessly
integrated into daily operations.
3. Economic Feasibility :

Economic feasibility involved a detailed cost-benefit

analysis (CBA) to determine the financial viability of
the project. The CBA considered both the initial
implementation costs and the long-term benefits of
the system. It factored in expenses related to
hardware and software acquisition, development,
deployment, training, and ongoing maintenance.
The analysis demonstrated the potential return on
investment (ROI) and helped decision-makers
assess the economic viability of the project.
 Hardware & Software Requirements

For the successful development and operation of the

credit card fraud detection system, the following
hardware components and specifications were
identified and utilized:

• Server Infrastructure:

The project required a dedicated server infrastructure

with the following specifications:
- Multiple high-performance servers for data
processing and storage.
- Sufficient processing power to handle real-time
transaction data.
- Adequate memory (RAM) to accommodate
machine learning algorithms and data analytics.
- Redundant storage solutions to ensure data
integrity and availability.
2. Database Server :
A robust database server was employed to manage
transaction data efficiently. The database server
specifications included:
Relational database management system (e.g.,
PostgreSQL or MySQL) for data storage.
Scalable storage capacity to accommodate
historical transaction records.
Backup and recovery mechanisms to prevent data
loss.

3. Networking Infrastructure:
The networking infrastructure was designed to
facilitate seamless data communication and system
connectivity:
High-speed internet connectivity for real-time data
processing.
Secure network protocols and encryption to
protect sensitive data during transmission.
Load balancing to distribute incoming requests
evenly across servers.
System Design
Form Design
 Advantages And
Limitations of
System
 Future
Enhancement
1. Machine Learning Integration:
Explore the integration of advanced machine
learning techniques, such as deep learning and
reinforcement learning, to further improve the
accuracy and adaptability of the fraud detection
models.

• Behavioural Analytics:

Implement behavioral analytics to detect anomalies

based on user behavior patterns, allowing the
system to identify deviations from typical
customer behavior.

• Real-time Monitoring Enhancements:

Enhance real-time monitoring capabilities by

incorporating additional data sources, external
threat intelligence feeds, and predictive analytics
to detect emerging fraud trends.
4. Mobile Application:
Develop a dedicated mobile application that enables
customers to receive instant notifications about
their card transactions, report suspicious activity,
and access fraud-related information on their
smartphones.

• Block chain Integration:

Investigate the integration of blockchain technology

to enhance the security and transparency of
transaction records, making fraud detection even
more robust.
Bibliography
Listed below are references, research papers, books,
and websites consulted during the project:

Research Papers:

•"Credit Card Fraud Detection Using Machine

Learning: A Review" by R. S. Bhatia and S. S. Islam
•"Anomaly Detection in Credit Card Transactions" by
S. García, J. Luengo, and F. Herrera
3. "A Survey of Credit Card Fraud Detection
Techniques: Data and Technique-Oriented
Perspective" by J. Siddiqi, N. Naseer, and S. U. Khan

Books:

•"Credit Card Fraud: A Beginners Guide to Protecting

Yourself from Credit Card Fraud" by David Johnson
•"Credit Card Fraud Detection: A Machine Learning
Approach" by S. Bhattacharyya and S. S. Ghorbani
3. "Fraud Analytics Using Descriptive, Predictive, and
Social Network Techniques: A Guide to Data Science
for Fraud Detection" by B. Baesens

Websites:

•[Visa's Fraud Detection and Prevention Resources]

(https://usa.visa.com/partner-with- us/secure-your-
business/visa-security-articles.html)
•[Mastercard's Fraud Prevention](https://
www.mastercard.us/en- us/merchants/start-
accepting/payment- security/fraud-prevention.html)
•[IEEE Xplore](https://ieeexplore.ieee.org/)