Analysis of Credit Card Fraud Detection Performance Using Random Forest Classifier & Neural Networks Model

Credit card fraud is one example of data manipulation in the e-commerce industry. Because credit card fraud is so common, preventing it can be difficult. Therefore, it is important to identify credit card fraud as soon as it occurs. Determining the validity of a transaction is a fraud detection process. Credit/ Debit cards/ any financial services are small plastic cards given to members of certain financial organizations with proper identity and verification. This research is quantitative research that uses a dataset that has been verified and classified as fraudulent or non-fraudulent transactions. This research will limit itself to credit card fraud detection methods that use Neural Networks and Random Forest Classifier algorithms. Using publicly available credit card transaction data as a starting point, this study will examine how well machine learning algorithms do overall in identifying credit card fraud. First of all, we check for the presence of duplicate values in the data set. The result of this check shows that there are no duplicate values in the set, marked with the value ‘False’. Next, we focus on class in the target variable ‘Class’. The output of this check shows the wide variety of samples for each class in the goal variable ‘Class’. In this example, class 0 has 284.315 samples and class 1 has 284.315 samples. Based totally on the studies performed, it is possible to conclude that the usage of machine learning algorithms, together with Random Forest Classifier and Neural Networks, can be effective in detecting credit card fraud. The results of the algorithm performance analysis show that the model developed can identify fraudulent transactions accurately. In addition, the data preparation stages, correlation analysis, and model performance evaluation also contribute to understanding potentially fraudulent credit card transaction patterns.