ISSN (Online) : 2456 - 0774

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ISSN (Online) 2456 - 0774



Credit card is the most popular mode of payment

for both online as well as offline. The use of credit cards has

increased day by day and a fraudulent transaction has also

increased day by day in today’s world. Credit card provides

cashless shopping at every shop in the world. In Credit card

fraud detection system, fraudulent transaction will be detected

after transaction is done. Credit card fraud can be detected

using Hidden Markov Model (HMM) during transactions.

Hidden Markov Model is the tools for solve “hidden”

problems. In this paper, the sequence of operations in credit

card transaction processing system using a Hidden Markov

Model and show how it can be used for the detection of fraud.

Using Hidden Markov Model, the fraud detection processing

system is trained with the standard procedures and spending

patterns of a card user.

Keywords- Hidden Markov Model (HMM).

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