SCAM Detection in Credit Card Application

Volume: 03, June 2014, Pages: 355-360
International Journal of Data Mining Techniques and Applications

ISSN: 2278-2419
SCAM Detection in Credit Card Application

M.Sanjeeevkumar1,A.Kamakshi2
1
Student, Department of CSE, Jayam College of Engineering & Technology, Dharmapuri-636813,

Tamilnadu, India
2
Asst. Professor, Department of CSE, Jayam College of Engineering & Technology,

Dharmapuri-636813, Tamilnadu, India
Email: sanjeevkumarmecse@gmail.com , dhivya.kamakshi@gmail.com
Abstract
Identity crime is well known, prevalent, and costly, and credit application scam is a specific case of
identity crime. The existing no data mining recognition system of business rules and scorecards and
known scam matching have confines. To address these confines and combat identity crime in real time,
this paper proposes a new multilayered discovery system complemented with two additional layers:
communal detection (CD) and spike detection (SD). CD finds real social relationships to reduce the
suspicion score, and is tamper unaffected to synthetic social relationships. It is the whitelist-oriented
methodology on a fixed set of attributes. SD finds spikes in false to increase the suspicion score, and is
probe-unaffected for elements. It is the attribute-oriented approach on a variable-size set of elements.
Together, CD and SD can detect more types of attacks, better account for changing legal activities, and
remove the redundant elements. Experiments were carried out on CD and SD with several million real
credit applications. Results on the data support the suggestion that successful credit application scam
patterns are sudden and exhibit sharp spikes in false. Although this research is specific to credit
application scam recognition, the concept of flexibility, together with adaptively and quality data
discussed in the paper, are general to the model, implementation, and evaluation of all recognition
systems.
Keywords Data mining-based scam detection, security, data stream mining, anomaly detection.
I. INTRODUCTION
Identity Scam Detection is the process of
detecting the scam that uses a false identity for
obtaining goods or services. This paper detects
the application scam that arises in the credit card
industry. This paper increases the effectiveness
of the existing system. This paper aims at
identifying application scam by achieving
flexibility by adding data mining-based layers.
This paper makes use of these powerful layers to
identify the identity scam named application
scam. This paper consists mainly of two parts
i.e. identifying scam lent application and
comparing the performance of these data mining
based layers.
Credit-card-based purchases categorized into
two types: 1) physical card and 2) virtual card.
In a physical-card based purchase, the card
defender presents his card physically to a
merchant for making payment. To carry out
Integrated Intelligent Research (IIR)
scam lent transactions in this purchase, an

attacker has to steal the credit card. If the card
defender does not realize the loss of card, it can
lead to a plentiful financial loss to the credit card
company. In the second purchase, only some
important information about the card (card
number, expiration date, secure code) is
mandatory to make the payment. Such
purchases are customarily done on the Internet
or over the telephone. To commit scam in these
types of purchases, a scamster simply needs to
know the card details. Most of the time, the
genuine card defender is not aware that someone
else has seen or stolen his card information. The
only way to detect this scam is to analyze the
spending patterns on every card and to figure out
any inconsistency with respect to the "usual"
spending patterns. Scam detection based on the
analysis of existing purchase data of the card
defender is a promising way to reduce the rate of
successful credit card scams. This paper is the
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ISSN: 2278-2419
continuity of existing model. Application scam

is when someone applies for a credit card with
false information. For detect application scam,
the solution is to implement a scam system that
allows identifying suspicious applications. For
detect application scam, two different situations
have to be distinguished: when applications
come from the same individual with the same
details, the so-called duplicates, and when
applications come from different individuals
with similar details, the so called identity fakes.
In most banks, to be eligible for a credit card,
applicants need to complete an application form.
This application form is mandatory except for
social fields. The information mandatory
includes identification information, location
information, contact information, confidential
information and additional information.
Recurrent information available would be for
identification purposes, such as the full name
and the date of birth. The applicant would
inform the bank about his/her location details:
the address, the postal code, the city and the
country.
requires the applicant to provide sufficient

point-weighted identity documents face-to-face.
They must hang together to at tiniest 100 points,
where a passport is worth 70 points.
Another business rule is to contact (or
investigate) the applicant over the telephone or
Internet. The above two business rules are
exceedingly effective, but human resource
intensive.
For rely less on human resources, common
business rule is to match an application's
identity number, address, or phone number
against exterior databases. That was convenient,
but the public telephone and address handbooks,
semi-public voters' register, and credit history
data can have data quality misgivings of
accuracy, completeness, and timeliness.
Another existing defence knew scam
matching. Here, known scams are complete
applications that were confirmed to have the
intent to descam and usually periodically
recorded into a blacklist. Afterward, the current
applications are matched against the blacklist.
The bank would also ask for contact details,

such as e-mail address, land-line and mobile
phone numbers. Confidential information will be
the password. In addition, the gender will be
given. All those characteristics may use while
searching for duplicates.
That has the benefit and clarity of hindsight

because patterns often reiteration themselves.
However, there are two main problems in using
known scams. First, they are untimely due to
long time delays, in days or months, for scam to
reveal itself, and be chronicled and recorded.
As in identity scam, credit application scam has

reached a critical mass of fakes who are
exceedingly experienced, organized, and
high-tech. Their visible patterns can be different
for each other and constantly change. They are
relentless, due to the high financial rewards, and
the risk and endeavor involved are minimal.
Based on anecdotal reflections of experienced
credit application investigators, fakes can use
software automation to manipulate particular
values within the application and increase
frequency of successful values.
Drawbacks of an Existing System
II. EXISTING SYSTEM

There are non data mining layers of defence
to protect against credit application scam, each
with its unique strengths and weaknesses. The
first existing defence made up of business rules
and scorecards.
In Australia, one business rule is the
hundred-point physical identity check test which
For rely less on human resources, common

business rule is to match an application's
identity n umber, address, or phone number
against exterior databases.
Not Efficient process for crime detection.
Security level is low.
Not Cost Effective.
III. PROPOSED SYSTEM
If The main fact-based of this research is to
realize flexibility by adding two new, real time,
data mining-based layers to complement the two
existing non data mining layers discussed in the
paper.
The main contribution of this paper is the
demonstration of flexibility, with adaptively and
quality data in real-time data mining-based
discovery algorithms. The first new layer is
Communal Detection (CD): the white
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list-oriented approach on a fixed set of

attributes. To complement and strength CD.
The second new layer is Spike Detection
(SD): the attribute-oriented approach on a
variable-size set of attributes. The second
involvement is the significant extension of
knowledge in credit application scam detection
because publications in this area are rare.
The last involvement is the recommendation
of credit application scam detection as one of the
many solutions to identity lawbreaking. Being at
the first stage of the credit life cycle, credit
application scam detection also prevents some
credit transactional scam, gives an overview of
related work in credit application scam detection
and other domains.
Before the testing and interpretation of CD
and SD results, final Section considers the legal
and ethical responsibility of handling
application data and describes the data,
evaluation measures, and experimental design.
Advantages of Proposed System:
Accuracy
Find scam applications very closely and
accuracy.
IV. SYSTEM ARCHITECTURE
A system architecture or systems architecture is
the conceptual model that defines the structure,
behavior, and more views of a system. It serves a
model to describe/analyze a system.
Fig 3.2.System Architecture for Checking

Efficiency of the System
V. MODULE DESCRIPTION
a. Multi-attribute link.
b. Communal relationship.
c. White list creation.
d. Spike detection.
e. Identifying scam lent application &
evaluation
Measures.
f. Performance of cd-sd.
Multi-attribute Link
This module is used to find the multi attribute
link between current application and
applications in the data set. For calculating this
multi attribute link, string similarity measure
Jaro-Winkler used.
Input / Output of the Module:
Input: Name, Surname, Address, State, Driving
License, Passport_ID, Organization Name
(string), DOB, Date received-date, Postcode,
Home Number (integer).
Output: Multi attribute link
Steps:
1. Set the initial values to string similarity
threshold, attribute threshold and number of
link types
2. Get the inputs from user
Calculate single attribute match between the
current application and applications in data
set by comparing its attributes. Computing
similarity measure does it. The match is set
to 1 if it exceeds string similarity threshold,
otherwise set to 0
Fig 3.1.System Architecture for Creating White

List.
For string similarity

Jaro-Winkler method.
measure,
use
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ISSN: 2278-2419
Jaro distance (dj):
Sk = Ek * (1/N) * Wk
dj = (1/3) (m/s1 + m/s2 + (m - t) / m)
Sk - single link score
m - Number of matching characters
Ek - single attribute match
t - Half the number of transpositions
N - Number of attributes
s1 - length of string1
Wk - weight of the zth link type
s2 - length of string2
Jaro-Winkler distance (dw):
If link type is not available for the match in

white list,
dw = dj + (p (1- dj)/10)
Sk = Ek * (1/N)
p - Length of common prefix
2. Calculate Single link average previous score

by
taking ratio of suspicion
score and number of links
Calculate multi-attribute link by comparing

all the attributes between current application
and applications in dataset, so that it yields multi
attribute link such as 00111110, 11111110 and
so.
A. Communal Relationship
This module is used to find the communal
relationship between the incoming application
and the applications in dataset. The communal
relationships such as Twins, Brothers, Spouse,
Neighbors, House mates, Office mates,
Duplicates can found.
Input / Output of the Module:
Input: Multi-attribute link
Output: Communal Relationship
Module Description
Steps:
1. Get the multi-attribute link
2. Based on the multi attribute link, find the
communal relationship as Twins/Brothers/..Etc
B. White List Creation
Input / Output of the Module
Input: Multi attribute link - integer
Output: White list
Module Description
Steps:
1. Calculate Single link score by comparing
Multi attribute link against sorted link type in
the white list to calculate single link score.
If link type is available for the match in white
list,
SSk
Bk = --------
Ok
Bk - Single link average previous score

SSk - suspicion score
Ok - Number of out links
3. Calculate suspicion score using link score
and its previous score
SSk= SK + Bk
4. Then update the white list.
C. Spike Detection
Input: Current application, string similarity
threshold, exponential smoothing factor
integer
Output: Suspicion score, Attribute weight integer
Module Description
Steps:
1. If there is a match between applications,
calculate single attribute match as in multi
attribute link module
In case of non match,
Ek
St = -------------------
St - single step scaled count

Ek - single attribute match
K - Number of values
2. Calculate every current applications score as
follows
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ISSN: 2278-2419
Ck = St * Wk
Ck - Current application score
Wk - attribute weight
3. SD attributes selection: Select the attributes
for the Spike Detection suspicion Score
4. CD attribute weights change: Change the
attribute weight
Ck New attribute weight = -------------Wk in white list
D.
Identifying Scam lent Application &

Evaluation Measures

Input: Suspicion score, exact positive, exact
Negative - integer
Output: Scam lent application
Precision, Recall, F measure - integer
Module Description
Steps:
1. Get the suspicion score from spike detection
2. Find the higher suspicion score
3. Return the application as scam lent
application which have higher suspicion score
4. Calculate precision, recall and F-measure
E. Performance Of CD-SD
Input: Precision, recall measures of CD-SD and
Naive Bayesian, SVM
Output: Performance of CD-SD
Module Description
Steps:
1. Get the precision, recall measures for
CD-SD and other data
2. Get the precision, recall measures for
CD-SD and other data mining techniques
3. Compare the measures among them
4. Show how much CD-SD is efficient than
others
VI. CONCLUSION
The implementation of Communal Detection
algorithm is practical because this algorithm
designed for use to complement the existing
detection system. The algorithm can search with
a larger moving window number of link types in
the white list, and a number of attributes.
Communal Detection updated after every period;
it is not a true evaluation as the fakes do not get
a chance to react and change their strategy in
response to Communal Detection as would
occur if they deployed in real life.
The main focus of this paper is Identity Scam
Detection in Credit card application. It has
documented the development and evaluation in
the data mining layers of defense for a real-time
credit application scam detection system. It
produces some few concepts which increase the
detection system's effectiveness. These concepts
are adaptive, which accounts for changing scam
and legal behavior and quality data, which deals
real-time removal of data errors. Finally, the last
contribution is the recommendation of credit
application scam detection is one of the many
solutions to identity scam.
VII. FUTURE ENHANCEMENT
Comparison of the incoming application with
the applications in the moving window of the
data set for generating links for attributes
consumes lot of time when the window size is
large. Parallelizing the code to run on multicore
architectures would drastically reduce the
execution time of the paper.
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Volume: 03, June 2014, Pages: 355-360

International Journal of Data Mining Techniques and Applications