Hmm-based Credit Card To Deceive The Risk Detection System Simulation Analysis

As the currency of electronic development and rapid development of e-commerce, credit cards in the banking business, a growing proportion of the same time, and the credit card-related fraud are also increasing, seriously disrupting the normal financial order, to the banks and caused great loss to the cardholder.This careful analysis of the credit card (virtual card) transaction characteristics, found that hidden Markov models can effectively discover its internal hidden potential unusual trading patterns.In this article build hidden Markov model, the process of credit card transactions on the spending of the different HMM models as a random process, the scope of the transaction amount, as can be observed in the output probability matrix, the type of goods as a model state, At the same time, the use of customer's spending habits to determine the initial state vector. Makes the HMM model can be applied to credit card a good test system.Hidden Markov model is based on the cardholder's spending habits, the training phase is completed offline detection stage is conducted on-line. And in testing phase of constant updating in a very good detection of both the risk of credit card fraud, but also to adapt to changes in cardholder spending habits.