Credit Card Fraud Detection Using Machine Learning Algorithms

Fraud: Fraud is any activity that causes financial loss to any other person. With the advancement of technology in the modern era, fraud related to credit card is continuously increasing. Credit card frauds are costing a huge amount of dollars to the customers. Nowadays, scammers are continuously finding new ways to do the scams. Also, to minimize the credit card fraud losses, different types of systems have been developed which detect frauds. We have to make a highly sensitive and powerful fraud detection system up to such an extent that it detects the fraud even before it takes place and in a sequential and exact manner. In this paper, we have mentioned three important algorithms, namely Isolation Forest, Support Vector Machine and Local Outlier Factor for credit card fraud detection. Also, we have discussed methodologies used in all three algorithms as mentioned above. We have also discussed the applications of the fraud detection system and how it will be implemented in the future.