Credit Card Fraud Detection using Data Mining Techniques: Critical Review Study

Abstract

Nowadays due to the revolution of Information Technology in all aspects of our life, Electronic Payments is becoming a raising trend. With the global direction and tremendous increase of online transactions for example, the use of credit cards has significantly increased. According to the increase of online payments and transactions, fraud cases also became a night mare and risk to anyone of us, if no precautionary measures and tools are taken. Such risks and losses are huge and enormous financial losses. People need to feel safe to shop and buy products and services online and to be confident that their money (credit cards) are safe and not used by others. As a result, banks and financial institutions enforced some tools and techniques to enhance and improve their fraud detections methods and capabilities. Data Mining is one of the most important tools used for credit card fraud detection. The goal of this study is to explore some techniques to be used by banks to reduce credit card fraud cases. By applying these tools and methods, consumers will be more safe and secure to use their credit cards while they are running their shopping online.