Credit card fraud detection using fuzzy ID3

By the exponential growth of Credit Card user the fraudulent transactions also have increased dramatically. The genuine transaction and fraudulent transactions are almost similar, so it is very hard to discover a fraudulent transaction form the genuine one. In this paper we have proposed fraud detection algorithm based on Fuzzy-ID3. Intermediate nodes we split using attribute having highest information gain. The leaf nodes classifies the transactions as fraud, doubtful or normal. Experimental result exhibits that the technique is efficient one in detecting frauds.