Methodology for fraud detection in electronic transactions

• José Felipe Júnior UFMG
• Wagner Meira Júnior UFMG
• Adriano Veloso UFMG
• Adriano Pereira CEFET-MG

Resumo

Due to the growing popularity of the Web, there is an increasing number of people who performs e-business transactions. On the other hand, this popularity has also attracted the attention of criminals, raising the number of fraud cases in Web and financial losses that reach billions of dollars per year. This paper proposes a methodology, based on the knowledge discovery process, to detect fraud in online payment systems. In order to evaluate this methodology we define the concept of economical efficiency and applied it to an actual dataset of one of the largest Latin American electronic payment systems. The results show a very good performance for our proposal, providing gains of up to 46.5% in comparison with the strategy currently employed.