Credit Card Fraud Detection using Time Series Analysis

Credit card usage has been increased tremendously because of the popularity of E-commerce. As the usage of credit card grows the occurrence of fraudulent transactions also increases, thus comes the stipulation of fraud detection. Detection of fraudulent transaction using credit card plays a vital role in financial institutions. In the proposed work, fraud detection is done with data mining approaches. The parameters considered are transaction amount and transaction time. For every cardholder there is always a robust periodic pattern in the spending behaviour, centered on this fact the anomalies in the transaction are detected by analyzing the past history of transactions belonging to an individual cardholder. In this work two levels of detection methods are used. At the first level the fraud is detected by analyzing whether the new