Artificial Intelligence Fraud Detection Using Genetic Algorithm

Abstract

With an increase usage of credit cards for online purchases as well as regular purchases, causes a credit card fraud. In the mode of electronic payment system, fraud transactions are rising on the regular basis. The Modern techniques based on the Data Mining, Genetic Programming etc. has used in detecting fraudulent transactions. The technique of finding optimal solution for the problem and implicitly generate the results using genetic algorithm. The aim is to develop a method of generating test data and to detect fraudulent transaction with this algorithm. This algorithm is an optimization technique and evolutionary search based on the principles of genetic and natural selection, heuristic used to solve high complexity computational problems. This paper presents to find the detection of credit card fraud mechanism and examines the result based on the principles of this algorithm. The benefit of detecting fraud is to clear for both credit card companies and their clients. The fraudulent transactions are not prevented from being cleared; the company must accept the financial cost of that transaction. This reduces the cost associated with higher interest rates, and its charges.