SHRI RAMMURTI SMARAK COLLEGE OF

ENGINEERING & TECHNOLOGY.

BAREILLY-243101(U.P)

Synopsis

On

CREDIT CARD FRAUD DETECTION SYSTEM

USING HIDDEN MARKOV MODEL

Group No: 11

SUBMITTED TO: SUMITTED BY:Ms. Jyoti Agarwal Abrar Ahmad (080004)

Akhil Kr. Gupta (080006)PROJECT GUIDE: Rudraansh Sethi (080085) Ms. Priya Agarwal Manoj Kr. Kannaujiya (080051)

September 14, 2011[

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CONTENTS

1. TITLE

2. OBJECTIVE OF PROJECT

3. REQUIREMENT SPECIFICATION

3.1 HARDWARE

3.2 SOFTWARE

4. FEASIBILTY AND FUNTIONALITY

5. METHODOLOGY

6. ADVANTAGES OF PROJECT

7. PROJECT APPLICATION

8. PROJECT RISK

9. FUTURE ENHANCEMENTS

10. PROJECT LIMITATIONS

11.REFERNCES

12.SIGNATORY

September 14, 2011[

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1. Title : CREDIT CARD FRAUD DETECTION SYSTEM

USING HIDDEN MARKOV MODEL

2. Objective of the Project:

The objective of this application is as follows:

Creating an application to detect fraud Credit Cards.

Implementing Hidden Markov model.

Creating database containing all relevant information of Customer.

Providing security to the customers at the time of transaction.

Implementing firewall to restrict entry outside the Network.

3. Requirement Specification:

3.1) Software Requirement:

Operating System: Windows XP/VISTA/2000/7

Application: Net Beans 6.5

Platform: JRE/JDK

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3.2) Hardware Requirement:

RAM Requirement: 2 GB or above

Processor : Dual Core/ Core 2 Duo/core i3/i5

Processing speed : Above 2.00 GHz

Hard Drive : 10GB or more

4. Features and Functionality

This project is based upon Hidden Markov Model.

HMMs can be applied to the gesture-recognition problem.

It is primarily concerned with empirically picking the HMM

parameters from some sample data.

Detects fraud to analyze the spending patterns on every card and to

figure out any inconsistency with respect to the “usual” spending

patterns.

Fraud detection system is based on the analysis of existing purchase

data of cardholder

It is a promising way to reduce the rate of successful credit card

frauds.

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5. Methodology:

This project is developed under JAVA and applet as front end, so

methodology adopted in this software is based on object oriented

concept.

6. Advantage of the Project:

Proper security provisions are made from malicious threats and hacking

tools so that user account cannot be harmed intentionally or non

intentionally from frauds.

Proper hierarchy of the users is maintained as per authority to access the

data and use the services provided by the authority.

Track all the necessary details during transaction process.

In case of the existing system even the original card holder is also

checked for fraud detection. But in this system no need to check the

original user as we maintain a log.

The log which is maintained will also be a proof for the bank for the

transaction made.

This reduces the tedious work of an employee in the bank.

We can find the most accurate detection using this technique.

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7. Project Applications:

The different areas where we can use this application are :

It can be used on the server of any organization providing financial

transactions.

It can also be used in banks and modifications can be easily done

according to requirements.

8. Project Risks:

Proper network security is necessary.

Frauds can be done using SQL injection.

9. Future Enhancements:

Speed of the software can be enhanced by implementation of algorithms of less complexity.

Inter mail server can be implemented using the same concept.

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10. Project Limitations:

It works only on windows XP/2000/vista/7.

Proper Document hierarchy should be maintained for accessing the required credit card.

Files and folders of a user deleted accidently can not be recovered.

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REFERNCES

Data Compression by Khalid Sayood

http://www.wikipedia.com

http:// www. ieeexplore.ieee.org

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Group No: 12

Group Members:

Abrar Ahmad……………………………..

Akhil Kr. Gupta……………………………….

Manoj Kr. Kannaujiya ……………………………

Rudraansh Sethi …………………….

Project Incharge:

Ms. Jyoti Agarwal

Project Guide:

Ms. Priya Agarwal

HOD Of CS Deptt:

Mr. L.S. Maurya