Survey of fraud detection techniques

Abstract

Due to the dramatic increase of fraud which results in loss of billions of dollars worldwide each year, several modern techniques in detecting fraud are continually developed and applied to many business fields. Fraud detection involves monitoring the behavior of populations of users in order to estimate, detect, or avoid undesirable behavior. Undesirable behavior is a broad term including delinquency, fraud, intrusion, and account defaulting. This paper presents a survey of current techniques used in credit card fraud detection, telecommunication fraud detection, and computer intrusion detection. The goal of this paper is to provide a comprehensive review of different techniques to detect frauds.