Fraud Detection in Banking Sector using Data Mining

In present scenario when the term fraud comes into a discussion, banking fraud clicks to mind until now. In recent years banking fraud has increasing extremely. Every year fraud in banking is rising. Fraud presents significant cost to our economy. For customer segmentation and productivity, most of the banks are using data mining, and also for credit scores and approval, predicting payment default, marketing, detecting fraudulent transactions, etc. This paper provides an overview of the concept of Data Mining and different frauds in Banking. The banking sector consists of public sector, private sector and foreign banks, apart from smaller regional and cooperative banks. IT-based banking products, services and solutions are available in market. Phone Banking, ATM facility, Credit, Debit and Smart Cards, Internet Banking & Mobile Banking, SWIFT Network & INFINET Network are most common in banking.