Computational Techniques for Real-Time Credit Card Fraud Detection

With e-commerce becoming mainstream and a manifold increase in online transactions, security risks associated with these have become crucial concerns. In this chapter, we focus on the security issues arising out of online credit card usage. Literature in the last two and half decades has been reviewed to analyze the changing attack vectors and solution approaches to this problem. Most common attributes and open datasets of credit card transactions have been compiled to provide a starting point for new researchers. Existing fraud detection methods have been scrutinized for efficacy in addressing key challenges of fraud detection like real-time detection, concept drift, imbalanced datasets, and classifier adaptability. New directions in credit card fraud detection research have also been proposed.