Root cause analysis of credit card fraud

Research Article
Open access

Root cause analysis of credit card fraud

Yutong Zhang 1*
  • 1 Sichuan Normal University    
  • *corresponding author 631952046@qq.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/24/20230454
AEMPS Vol.24
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-91-1
ISBN (Online): 978-1-915371-92-8

Abstract

Fraud detection has always been a major problem in society, especially in the banking, insurance and medical sectors. As more and more people are using credit cards to pay, the fraud rates tend to get higher. This situation is a considerable risk for the credit card company. At the same time, credit cards and their related industries have become an indispensable part of the economic construction of various countries. Therefore through descriptive analysis, regression and factor analysis, this paper analyzes the root cause of fraudulent transactions and makes simple predictions. Discusses the characteristics of cardholders and influencing factors of fraudulent transactions, The subjective psychological factors have the biggest influence on fraudulent transactions and puts forward some suggestions to prevent fraudulent transactions.

Keywords:

credit card fraud, logistic regression, characteristics of the cardholder

Zhang,Y. (2023). Root cause analysis of credit card fraud. Advances in Economics, Management and Political Sciences,24,300-310.
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References

[1]. Yihao Zhang, Danhong Sheng, Lifang Li, et al. Application and Research on Weighted Random Forest [J]. Computer Programming Skills and Maintenance, 2021 (4): 111-112

[2]. HSN Consultants Inc. (2013). The Nilson report. Oxnard, CA: Author.

[3]. Shen, A. (2011). INFOGRAPHIC: Americans are spending a whopping $704.18 on gifts this year. Retrieved December 6, 2015, from http://www. businessinsider.com/what-americans-spend-on-christmas-2011-12

[4]. Visa Europe. (2011). Irish consumers to spend €257 million on Christmas nternet shopping. Retrieved December 6, 2015, from http://www.visa.ie/about-us/press-releases/irish-consumers-to-spend-257-million-onchristmas-internet-shopping

[5]. Hongbo Shen, Hui Huang & Li Liao. (2013). Study on the overdraft behavior of cardholders in China's credit card market. Statistical study (10), 61-67. doi: 10.19343/j.cnki.11-1302/c.2013.10. 009.

[6]. Ran Deng. (2018). Research on the impact of exogenous impact on cardholders' credit card consumption behavior (doctoral dissertation, Central University of Finance and Economics). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname=CDFDLAST2019&filename=1019652399.nh

[7]. Andrew K.G. Tan,Steven T. Yen & Yiing Jia Loke.(2019).Credit Card Holders, Convenience Users and Revolvers: A Tobit Model with Binary Selection and Ordinal Treatment. Journal of Applied Economics (2). doi:12043395.

[8]. Oyekunle Janet Olufunmike; Ayoola Joshua Femi; Oyenuga Iyabode Favour; Masopa Adekunle Nurudeen; Adesiyan Adefowope Abdul Azeez Estimation of CPI of Some Sub-sahara African Countries: Panel Data Approach [J] American Journal of Theoretical and Applied Statistics,2019

[9]. D. Gao, B. Zhang, and S. Li, “Spatial effect analysis of total factor productivity and forestry economic growth,” Forests, vol. 12, no. 6, p. 702, 2021.

[10]. B. Qla and B. Ms, “BALFA: a brain storm optimization-based adaptive latent factor analysis model,” Information Sciences, vol. 578, pp. 913–929, 2021.

[11]. W. Fukumoto, H. Mitani, Y. Kuno et al., “Incidence and factor analysis of laryngohyoid fractures in hanging individuals—computed tomography study,” European Radiology, vol. 31, no. 10, pp. 7827–7833, 2021.

[12]. Zhao Qiang. (2022). Quality Analysis and Key Factor Research in Japan’s Economic Growth Based on Factor Analysis. Journal of Sensors. doi:10.1155/2022/9976494.

Cite this article

Zhang,Y. (2023). Root cause analysis of credit card fraud. Advances in Economics, Management and Political Sciences,24,300-310.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-91-1(Print) / 978-1-915371-92-8(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.24
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Yihao Zhang, Danhong Sheng, Lifang Li, et al. Application and Research on Weighted Random Forest [J]. Computer Programming Skills and Maintenance, 2021 (4): 111-112

[2]. HSN Consultants Inc. (2013). The Nilson report. Oxnard, CA: Author.

[3]. Shen, A. (2011). INFOGRAPHIC: Americans are spending a whopping $704.18 on gifts this year. Retrieved December 6, 2015, from http://www. businessinsider.com/what-americans-spend-on-christmas-2011-12

[4]. Visa Europe. (2011). Irish consumers to spend €257 million on Christmas nternet shopping. Retrieved December 6, 2015, from http://www.visa.ie/about-us/press-releases/irish-consumers-to-spend-257-million-onchristmas-internet-shopping

[5]. Hongbo Shen, Hui Huang & Li Liao. (2013). Study on the overdraft behavior of cardholders in China's credit card market. Statistical study (10), 61-67. doi: 10.19343/j.cnki.11-1302/c.2013.10. 009.

[6]. Ran Deng. (2018). Research on the impact of exogenous impact on cardholders' credit card consumption behavior (doctoral dissertation, Central University of Finance and Economics). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname=CDFDLAST2019&filename=1019652399.nh

[7]. Andrew K.G. Tan,Steven T. Yen & Yiing Jia Loke.(2019).Credit Card Holders, Convenience Users and Revolvers: A Tobit Model with Binary Selection and Ordinal Treatment. Journal of Applied Economics (2). doi:12043395.

[8]. Oyekunle Janet Olufunmike; Ayoola Joshua Femi; Oyenuga Iyabode Favour; Masopa Adekunle Nurudeen; Adesiyan Adefowope Abdul Azeez Estimation of CPI of Some Sub-sahara African Countries: Panel Data Approach [J] American Journal of Theoretical and Applied Statistics,2019

[9]. D. Gao, B. Zhang, and S. Li, “Spatial effect analysis of total factor productivity and forestry economic growth,” Forests, vol. 12, no. 6, p. 702, 2021.

[10]. B. Qla and B. Ms, “BALFA: a brain storm optimization-based adaptive latent factor analysis model,” Information Sciences, vol. 578, pp. 913–929, 2021.

[11]. W. Fukumoto, H. Mitani, Y. Kuno et al., “Incidence and factor analysis of laryngohyoid fractures in hanging individuals—computed tomography study,” European Radiology, vol. 31, no. 10, pp. 7827–7833, 2021.

[12]. Zhao Qiang. (2022). Quality Analysis and Key Factor Research in Japan’s Economic Growth Based on Factor Analysis. Journal of Sensors. doi:10.1155/2022/9976494.

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