Toward an Efficient Credit Card Fraud Detection

Credit card fraud is a type of financial crime involving the unlawful use of a credit card for financial advantages. It can be obtained through unethical behaviors such as phishing, skimming devices, and data breaches. Because credit card fraud is becoming a major threat to cardholders, issuing banks, and online stores, developing an efficient detection system becomes crucial. This paper proposes a three-stage fraudulent card detection system. It relies on a) Detection of invalid and fake credit from legitimate ones by using the Luhn algorithm for card number validation, b) dynamic verification of card expiry date, and c) a script code validation for Card Verification Value (CVV) or Card Verification Code (CVC) that compute the total number of digits which should be within the specified range. In addition, this work provides a user-friendly GUI that integrates the proposed solution, making it very easy and simple to use. As a result of extensive tests of several fraudulent and valid cards, our proposed solution showed a high efficiency compared to the distance sum model. It also detected serial numbers that passed the applications where only the luhn algorithm is used.