VAAGDEVI ENGINEERING COLLEGE
DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING
UPI Fraud detection using CNN
GUIDE PRESENTED BY
Dr.T.SRILEKHA PARANKUSHAM RISHITHA
UPI Fraud Detection Using CNN
This presentation investigates the role of Convolutional Neural Networks (CNN) in identifying fraudulent
activities within Unified Payments Interface (UPI) transactions. As financial transactions become increasingly
digital, the need for robust machine learning solutions is paramount. Implementing CNNs can significantly
enhance the security of UPI transactions, ensuring a safer financial environment for users.
Introduction to Unified Payments Interface
Overview of UPI Growth of UPI Transactions Need for Fraud Detection
Unified Payments Interface (UPI) UPI has seen exponential As UPI usage increases, the
is a real-time payment system growth, handling billions of necessity for robust fraud
that enables instant money transactions monthly, making it detection systems becomes
transfers between bank a prime target for fraudsters paramount to protect users and
accounts via mobile devices, aiming to exploit vulnerabilities. maintain trust in digital
revolutionizing digital payments transactions.
in India.
Understanding CNN
Working Principle
CNNs use convolutional layers to
extract features from input data,
followed by pooling layers to
What is CNN?
reduce dimensionality, making
2
Convolutional Neural them efficient for pattern
Networks (CNN) are a class of recognition.
deep learning algorithms 1
primarily used for image
processing but have
Why CNN for Fraud
applications in various fields, 3
Detection?
including fraud detection.
CNNs can analyze transaction
patterns and detect anomalies
effectively, allowing for real-time
fraud detection in UPI
transactions.
Fraud Detection Mechanism
The fraud detection mechanism consists of key processes that leverage data collection, feature extraction,
and model training to effectively identify fraudulent activities in transaction data.
1 2 3
Data Collection Feature Extraction Model Training
Collect transaction data, Utilize CNN for automatic Train the CNN model using
including user behavior feature extraction to identify labeled data to enhance
patterns, transaction amounts, patterns indicating fraud. detection accuracy.
and timestamps.
Implementation Steps for Fraud Detection
1 2 3
Data Preprocessing Model Architecture Testing and Validation
Clean and preprocess the data
Design a CNN architecture Evaluate the model's
by normalizing transaction
suitable for fraud detection, performance using a separate
values and encoding categorical
incorporating multiple validation dataset, adjusting
features to prepare it for CNN
convolutional and pooling layers hyperparameters to optimize
input.
to capture complex patterns. accuracy and reduce false
positives.
Challenges in Fraud Detection
Adaptive Fraud Techniques
2 Fraudsters continuously evolve
their tactics, requiring models to
Data Imbalance adapt.
Fraudulent transactions are 1
often much rarer than
legitimate ones. Real-Time Processing
3 Implementing a system for real-
time transaction processing
poses challenges.
Future Directions in Fraud
Detection
Integration of User
Collaborative
AI Behavior
Approaches
Techniques Analytics
Combining CNN User behavior Financial
with RNNs analytics provide institutions can
enhances additional collaborate to
detection context for create a
capabilities by transactions, comprehensive
analyzing time- improving fraud fraud detection
series data. detection ecosystem.
accuracy.
Conclusion on CNN in UPI Fraud Detection
Significance of CNN Ongoing Research and Commitment to Security
CNNs enhance fraud detection
Development Implementing advanced
in UPI transactions, contributing Continuous research is essential detection mechanisms fosters
to digital payment security. for adapting to evolving fraud trust in UPI, promoting digital
tactics and ensuring robustness. payment growth.
