A comprehensive Study on Credit Card Fraud Prevention and Detection

Abstract

Nowadays, credit card fraud is becoming more and more challenging for financial institutions. With the era of technology and digitization, frauds are taking variety of forms remaining in perpetual growth and having a huge impact on the business gain. Financial institutions try to use standard tools and to comply with industry and payment schemes requirements. They have also started to invest fully in artificial intelligence and to integrate advanced tools such as machine learning and deep learning techniques within their system. Nevertheless, the effort remains insufficient due the various challenges of this phenomenon. In this paper, we go in details with credit card and card not present frauds, as well as standard tools and classic approaches being used to prevent against them. We also propose a recent state of art on various data mining techniques used to overcome this problem. The result of our study is a very good starting point for researchers working on the same subject since it gives a good understanding of credit card fraud phenomenon as well as presents different approaches and methodologies adopted to prevent such frauds and highlights the main challenges that were faced.