A Hybrid Approach Using Maximum Entropy and Bayesian Learning for Detecting Delinquency in Financial Industry

The use of credit card has increased tremendously in the past few years because of the boom in the economy which has also resulted in the increase in the credit card fraud cases. Various leading banks and software development companies worldwide are taking serious measures to deal with the gravity of this situation. This paper proposes a framework for credit card fraud detection that will detect frauds using maximum entropy according to the irregular behavior of the customers in various transactions of credit card. The comparative study of above approach with existing approaches is also addressed. Results show the feasibility and validity of each approach.