Credit Card Fraud: Bang in E-Commerce

Recent decades have seen a gigantic expansion in the use of credit cards as a true transactional medium. Data mining is rising as one of the chief features of many homeland security\ initiatives. Often, it is used as a means for detecting fraud, assessing risk, as well as product retailing. Data mining is becoming increasingly common in both the private as well as public sectors. Data mining involves the use of data analysis tools to find out formerly unknown, believable patterns and relationships in large data sets. Credit card offers a number of secondary benefits unavailable from cash or checks. Credit cards are safer from theft than is cash. Fraud detection involves monitoring the behavior of populations of users in order to estimate, detect or avoid unwanted behavior. In this paper, we studied various factors required to distinguish transaction and characterizes factors affecting fraud detection with fraud prevention techniques.