Credit card fraud is a significant threat in the BFSI sector. This credit card fraud detection system studies and analyzes user behavior patterns and uses location scanning techniques to identify any unusual patterns. One of The user patterns includes important user behavior like spending habits, usage patterns, etc. The system uses geographic location for identity verification. In case it detects any unusual pattern, the user will be required to undergo the verification process again.
The fraud detection system stores the past transaction data of each user. Based on this data, it calculates the standard user behavior patterns for individual users, and any deviation from those normal patterns becomes a trigger for the system. In the instance of any unusual activity, the system will not only raise alerts, but it will also block the user after three invalid attempts.
Importance of having Credit card fraud detection
- Prevents fraudsters from making multiple transactions
- Secure
- Creates alerts
- Authentication of customers
- Brings more databases, and helps more users to adopt the technology.
- Increases user confidence
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