26-05-2012, 01:24 PM
ONLINE CREDIT CARD FRAUD PREVENTION SYSTEM FOR DEVELOPING COUNTRIES
ONLINE CREDIT CARD FRAUD PREVENTION SYSTEM FOR DEVELOPING COUNTRIES.pdf (Size: 406.38 KB / Downloads: 79)
INTRODUCTION
Electronic Payment via credit card has brought
profound changes in recent times. This system is
widely accepted as it’s convenient and simpler to
use but credit card fraud has negative effect on
its widespread usage.
In developing countries currently there exits less
trend of buying things online from electronic
shops, there are many reasons for that. One of
them is the fraud associated with online
payments, because of this the user don’t feel
comfortable in giving out there information such
as credit card numbers and hence avoid
purchasing stuff online.
CONTRIBUTIONS
Address verification system (AVS) technique is
commonly used to prevent online fraud in “card
not present” transactions. This technique is
carefully examined and new fraud prevention
system is proposed which overcomes the flaws
of the AVS technique. Credit card related frauds
in online payments have increased rapidly. Many
techniques have been designed to find ways to
overcome credit card. Still no technique can
provide solution for all types of fraud. As far as
developing countries are concerned less work
has been done to overcome this problem. Losses
related with credit cards are rising quickly each
year. This research model proposes a framework
for “card not present” fraud.
RELATED WORK
Jithendra Dara et al [1] carried out a research to
study the ways the banks use to reduce the
problems in credit card transactions. The security
features used by the banks to protect transactions
from fraudsters were also studied in detail. Data
was taken from two financial institutions Sweden
and India [1].
Micci-Barreca et al [2] proposed an e-payment
system to detect fraudulent transactions of Card-
Not-Present (CNP) based on data mining
techniques. The basic principle was to determine
indicators of fraudulent behavior by analyzing a
huge amount of data [2].This framework has
many parts such as warehouse, profiling module,
software programs, a profiler monitor
construction module, a storage component and a
data mining classifiers modules like artificial
neural network (ANN), Its working depends
upon the “single detector” which has the
capability to detect fraud effectively based on the
profiler outputs [2].
CREDIT CARD FRAUDS
Online Credit Card fraud is one of the main
hindrances in promoting Electronic Commerce in
developing countries. To resolve this problem it
is necessary to first gain in depth knowledge of
the different types of online credit card fraud.
There are many types of card related frauds. Lost
or stolen card is one the most frequent type of
fraud. Other kinds of fraud include skimming,
Identity theft, counterfeit fraud etc [5]
FRAMEWORK OVERVIEW
In this research a model is proposed for fraud
prevention for developing countries, it is
proposed while keeping in resources of the
developing countries. It basically consists of a
client server environment. Fraud is a key
dilemma in electronic transactions, preventing
fraud in real time systems isn’t an easy task, the
basic approach followed in this system is to
prevent fraud at an early stage, and rather than
reporting fraud after it has been done.
For this purpose various fraud prevention
techniques which have been used in the
developed countries have been studied. A new
model is proposed which tries to overcome the
weaknesses of this system