Credit Card Fraud Detection System Using Intelligent Agents and Enhanced Security Features

Abstract

Credit card fraud can be detected using intelligent agents during transactions. Intelligent Agents aids to obtain a high fraud transaction coverage combined with low false alarm rate, thus providing a better and convenient way to detect frauds. Using intelligent agent, customers’ pattern is analyzed and any deviation from the regular pattern is considered to be a fraudulent transaction. In this paper, the intelligent agent is used to detect the fraud when transaction is in progress. The existing fraud detection techniques are not capable to detect fraud at the time when transaction is in progress. As the usage of credit card has increased the credit card fraud has also increased dramatically. The system will send a token to the customer for more security checks and ask a secret question to the customer, if answer correctly, the customer will proceed for the transaction. If fail, the transaction is a fraudulent transaction and SMS message will send to customer and bank database.