A Study on the Improvement of FDS Effectiveness over the Case Analysis on E-commerce Credit-card Fraud-to-sales

As the advancement of information and communications technology (ICT) and the rapid growth of Fintech (Finance Technology) industry, the proportion of online e-commerce increases sharply in the credit-card payment market recently. Also, various payment services such as mobile card and the easy payment system have emerged in the e-commerce area, and electronic finance frauds and accidents using credit cards have also become more sophisticated and diversifiable accordingly. Thus, establishing FDS (Fraud Detection System) that considered differentiated e-commerce environmental features from the offline based current FDS system is needed to advance the prevention and detection of credit card frauds and accidents in e-commerce. In this paper, we compare the operating environment of the offline credit-card transaction and online e-commerce. Then we propose improvement method of credit-card e-commerce FDS detection that specialized online e-commerce. This method is considered the feature of the online credit-card transaction and the pattern of fraud usage in addition to operating offline transaction based FDS currently. And we verify the propriety and efficiency of the proposed method by applying it to the FDS system currently managed by a financial company.