Identifying fraudulent online transactions using data mining and statistical techniques

With the vigorous development of internet technologies, online payment is becoming a more and more popular way to make purchases compared to the traditional ways. There are many excellent benefits to both the consumers and business. However, it could also cause great damage to the business due to the increasing number of fraudulent online transactions. This paper is aimed to discuss how the data mining and statistical algorithms can help to identify the fraudulent transactions´ characteristics and prevent the fraudulent transactions in real-time.