Abstract

DISTRIBUTED DATA MINING IN CREDIT CARD FRAUD

DETECTION
In the modern days, improved fraud detection has becomeessential to
maintain the viability of the country’s payment system. Largescale data mining
techniques can improve on the state of art in commercialpractice.
The aim of data mining is to extract knowledge from largeamounts of
data. This knowledge is nontrivial and hidden in the data.Machine learning is often used
in the process of data mining. The aim ofmachine learning is to adapt to new
circumstances, to detect and extrapolate.A distinction can be made between unsupervised
and supervised machinelearning algorithms. This approach addresses the efficiency and
scalabilityissues by dividing large dataset of labeled transactions (either fraudulent
orlegitimate) in to smaller subsets by applying data mining algorithms.
Also, this project evaluates other useful data like outstandingbalance,
transaction management involved for a particular month and a year.This project evaluates
a decision tree in order to differentiate the good andfraudulent customers. A graph that
visualizes the good and bad customerscan also be done with respective values obtained.
ALGORITHM:
The algorithms used in this project are: k- means clusteringalgorithm, ADA
cost algorithm. These algorithms evaluate the requiredvalues for the purpose of finding
out the fraudulent customers.
The Hardware Interfaces for this system are:
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Processor with at least 1GHz speed.
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More than 256 MB Ram.
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Type-3 driver support.
Software Interfaces
The various Software Interfaces for this system are:
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JDK1.5
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JNDI
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JSP
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Tomcat Server
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Internet Explorer 6.0 or Netscape 4.0 browser with JVM support
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Oracle-10g
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Windows 2000 professional