Abstract :
Speed and accurate customer authentication and confirmation have become essential in the growing electronic transactions. High acceptability and expediency of e-transaction for payments has given individual comfort to customers and as well created a centre of attention for a huge number of fraudsters. From every indication, the existing preventive and detection policies were not sufficient to stop the electronic fraud issues; it is uncertain if the key authorities in the financial industry took enough measures in responding to this notification. Therefore, the need to ensure secured transactions for electronic purchases for goods and services in a virtual environment is inevitable. The purpose of this paper is to develop an electronic card transaction fraud detection system for Nigeria financial institutions using the Hidden Markov model and Neural Network that could combine proof from ongoing and past activities profile of customer usage to establish the anomaly level of each transaction. However, the incidence of e-fraud in Nigeria is also discussed.
Keyword :
Electronic Payment, Internal Control, Fraud Detection System, E-fraud, Authentication