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70 views12 pages

upi demo 1 (1)

Uploaded by

mohammedtaaseen111
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UPI FRAUD DETECTION

BY: SHAIKH ALTAMASH(3PD21CG041)


& GULAM MOHAMMED TAASEEN (3PD21CG013)

UNDER GUIDANCE OF :SATISH HARSOOR


ABSTRACT

This study investigates the use of machine learning (ML) techniques for detecting fraud in
Unified Payments Interface (UPI) transactions. We applied various ML algorithms, including
decision trees and neural networks, to analyze transaction data and identify fraudulent patterns.
Our approach demonstrated significant improvements in detection rates, with enhanced
precision and recall compared to traditional methods. The findings underscore the effectiveness
of ML in mitigating UPI fraud and the necessity for ongoing model updates to counteract
evolving threats, thereby bolstering trust in digital payment systems.
INTRODUCTION
• UPI transactions are convenient but risky. Fraudsters exploit vulnerabilities, endangering
users' money and trust.
• Develop a robust UPI Fraud Detection system to empower users and aid banks/regulators in
stopping fraud effectively.
• We'll use machine learning and real-time monitoring to swiftly and accurately identify
suspicious activity.
• Providing tools and alerts for quick recognition and response to fraud.
• Building a safer digital payment system using innovative methods to combat fraud and
maintain trust.
PROBLEM STATEMENT

The problem is the increasing prevalence of fraudulent activities within the


UPI ecosystem, necessitating the development of a robust UPI Fraud
Detection system leveraging advanced technologies to proactively identify
and prevent fraud, safeguarding users' financial assets and preserving the
integrity of digital payments.
SCOPE
Implement fraud detection techniques using machine learning and real-
time monitoring for UPI transactions.
Collect and preprocess transactional data to ensure quality and
integrity.
Notify users and stakeholders about potential fraud, providing
actionable insights.
Empower users with tools and resources to recognize and respond to
fraud.
Integrate with existing banking infrastructure and regulatory
frameworks.
Ensure scalability, compliance, and privacy of transactional data.
LITERATURE SURVEY
1. Machine Learning Techniques for Fraud Detection
- Key Studies: Bhattacharyya et al. (2019), Gupta et al. (2020)
- Findings: Ensemble techniques (random forests, gradient boosting) and deep learning models
(CNNs, RNNs) are highly effective in detecting fraudulent transactions.

2. Feature Engineering and Dimensionality Reduction


- Key Studies: Kumar et al. (2018), Jain et al. (2020), Khan et al. (2019)
- Findings: Crafting features like transaction frequency, time of day, and user behavior is crucial.
Dimensionality reduction (PCA, t-SNE) enhances model performance and interpretability.
3.Real-Time Monitoring and Alerting Systems
- Key Studies: Sharma et al. (2017), Mishra et al. (2021)
- Findings: Using frameworks like Apache Kafka enables real-time fraud detection and alerts, facilitating immediate user and authority
responses.

4. Addressing Class Imbalance and Model Interpretability


- Key Studies: Jain et al. (2019), Ahmad et al. (2020)
- Findings: Techniques like oversampling, undersampling, and synthetic data generation mitigate class imbalance. Tools like SHAP and
LIME improve model interpretability and trust.

5. Regulatory Compliance and Ethical Considerations


- Key Studies: Sood et al. (2018), Patel et al. (2020)
- Findings: Compliance with data privacy regulations and ethical guidelines is essential, ensuring transparency and fostering
collaboration among stakeholders.
EXISTING SYSTEM
• Banks rely on manual reviews by employees, which are time-consuming and prone to
errors.
• Some banks use predefined rules to flag potential fraud, but they may miss evolving
tactics and generate false alarms.
• Systems analyze data periodically, leading to delayed fraud detection.
• Utilizes machine learning but may struggle with sophisticated fraud schemes.
• Banks share information but may face communication challenges.
• Educates users about fraud but doesn't address detection directly.
• Offers real-time monitoring but may lack sophistication.
PROPOSED SYSTEM
• Use advanced algorithms for real-time fraud detection.
• Notify users and stakeholders instantly of suspicious activity.
• Identify abnormal patterns using behavioral analysis.
• Integrate with regulations for compliance and information sharing.
• Adapt to new fraud tactics through ongoing learning.
• Ensure scalability and efficiency for handling large volumes.
• Create an easy-to-use interface for accessing data and alerts.
• Offer comprehensive guides and training for users and stakeholders.
METHODOLOGY
• Data Collection: Gather transactional data from various sources.
• Preprocessing: Clean and prepare data for analysis.
• Model Selection: Choose appropriate machine learning algorithms.
• Model Training: Train the selected models using the data.
• Validation: Validate model performance using separate data.
• Continuous Improvement: Monitor, update, and enhance system over time.
BLOCK DIAGRAM
THANK YOU

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