International Association of Engineers
With the developments in the Information Technology and improvements in the communication channels, fraud is spreading all over the world, resulting in huge financial losses. Though fraud prevention mechanisms such as CHIP&PIN are developed, these mechanisms do not prevent the most common fraud types such as fraudulent credit card usages over virtual POS terminals or mail orders. As a result, fraud detection is the essential tool and probably the best way to stop such fraud types. In this paper, classification models based on decision trees and Support Vector Machines (SVM) are developed and applied on credit card fraud detection problem.