Analysis of Fraud Detection Approaches in Online Payment Systems

Detecting fraud is an important topic that is appropriate to many different industries, together with the banking industry, government agencies, insurance companies, law prosecution, and many more. E-commerce platforms already provide a wide variety of different payment methods for use online across the globe. The development of fraud detection algorithms those are both powerful and efficient. When it comes to uncovering fraudulent activity, a wide variety of approaches have been tried and tested. This chapter presents the strategies for detecting fraudulent activity in online systems and analyzes the best-performing methodology in the fraud detection process, as well as discusses the role of unbalanced data handling, such as resampling strategies methods.