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Fraud Detection Life Cycle Model: A Systematic Fuzzy Approach to Fraud Management

Rajiv Arora

Computer Engineering Department, Delhi Technological University, New Delhi, India

Corresponding author.

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Daya Gupta

Computer Engineering Department, Delhi Technological University, New Delhi, India

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Payal Pahwa

Computer Engineering Department, Bhagwan Parshuram Institute of Technology, GGSIPU, New Delhi, India

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https://doi.org/10.1142/S1469026815500108Cited by:0 (Source: Crossref)

Abstract

Advancements in science and technology have impacted the global scenario significantly in each and every sphere of life. Unfortunately, this has also caused an increase in the number of frauds in various fields. Fraudsters are making an illegal access to the users' account in parallel with the users without being detected which results in heavy losses in terms of money, data and time. Therefore, detection of frauds has become an important need for the organizations not only to prevent the misuse but also to detect and report any such access as and when it is made. In this paper, a fraud detection life cycle model is proposed which reveals the detection of fraudulent behavior of customers. The objective of this life cycle model is to minimize the frauds occurring in different areas which are sensitive to fraudulent behavior such as telecommunication, credit card, finance industry and so on. We have presented a case study of Public Sector Telecommunication Company to demonstrate the life cycle model and further shown how our proposed life cycle model works on it by using some fuzzy-based inference rules for efficient detection of frauds.

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