Detecting and Preventing Fraud Transaction Using Artificial Intelligence in Banking

Proliferation of internet users and the development of computing technology enhanced the financial transactions. Credit card payments are convenient way of making payments. Though it is widely accepted for making payments, it poses some challenges. Credit card fraud is a serious problem in the financial institutions that may have serious consequences. Unfortunately, these credit card systems are used by both normal users and fraud users. In addition to this, fraud users are using various methods to violate the system. In recent period, the development of Artificial Intelligence helping us to detect the fraud transactions. Ensemble method is used to detect the fraudulent activities from a complex data. In this paper, XGboost method is used to detect fraud transactions. The performance of the XGboost method is compared with machine learning classifiers. Experiments were conducted on fraud detection dataset, proved that the XGboost can improve the performance. Further, it is recorded the performance with highest accuracy.