Credit Card Number Fraud Detection Using K-Means with Hidden Markov Method
| International Journal of Mobile Computing and Application |
| © 2015 by SSRG - IJMCA Journal |
| Volume 2 Issue 2 |
| Year of Publication : 2015 |
| Authors : Pooja Bhati and Manoj Sharma |
10.14445/23939141/IJMCA-V2I3P119
How to Cite?
Pooja Bhati and Manoj Sharma, "Credit Card Number Fraud Detection Using K-Means with Hidden Markov Method," SSRG International Journal of Mobile Computing and Application, vol. 2, no. 2, pp. 15-18, 2015. Crossref, https://doi.org/10.14445/23939141/IJMCA-V2I3P119
Abstract:
Clustering is a way of segmenting the data into some purposeful groups. When done efficiently, the final product, i.e. the clusters should seize the very essence of the original data. Clustering and outlier detection are the two paramount fields of data mining. In today’s time, when security is one of the major issues in every aspect of life, outlier detection becomes inevitable for data mining. Any arrangement or design which is contradictory to the rest of the arrangement can be defined as an outlier for that particular sampleset. Monetary fraud is hugely spread over every possible aspect of life. Credit card fraud is also very common, as they are being extensively nowadays. The method being proposed in this paper is to use k-means clustering and then finding outliers in the resultant clusters using the Hidden Markov Method. Our proposed algorithm effectively sub-divides the in-liners into clusters and then detects the outliers. After that Luhn Algorithm is being used for validating the resultant credit card numbers. Our proposed work would work much more efficiently and effectively in case of Big data, as normal k-means has a poor tendency to work with big data and also to detect outliers.
Keywords:
Outlier, Monetary fraud, k-Means, Hidden Markov Method, Luhn Algorithm
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