Enhancing reliable online transaction with intelligent rule-based fraud detection technique

Abstract

The Central Bank of Nigeria has declared her (CBN) intention and piloted in some states the need towards a cashless economy. These are with a bid to reducing amongst other things the cost of production and also dissuade the poor handling of Nigeria currency. The CBN pronouncement has necessitated the upsurge in transactions completed with credit cards coupled with the introduction of online shopping and banking. Correspondingly, the number of credit card frauds has also increased with the introduction of newer technology. Today, financial institutions all around the world are sourcing for the right methodology to detect and combat financial transaction fraud. While some of these frauds are avoidable, the bulk could easily be passed for negligence and ignorance emanating from the card holder or the process involve in the transaction. This paper focuses on developing an intelligent rule-based model that can automatically detect fraudulent transactions in card based system by providing mechanisms through which customers can set their transaction rules right from inception which can still be changed along the line as the need arises. The implementation of the design methodology shows that it is very possible for customers to control where and when they want to be able to perform a transaction.

Keywords: Transaction, Financial institution, Credit card frauds, Rule-based model.