October 2024
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The usage of credit cards has increased significantly as the world becomes increasingly digital and financial transactions happen online. The increasing amount of fraud associated with it causes financial institutions to endure huge losses. We must, therefore, investigate and distinguish between fraudulent and non-fraudulent transactions. We planned to apply the full model training process from start to finish for this investigation. The outcome will be the acquisition of the most effective model capable of differentiating regular transactions from abnormal ones. Credit card fraud is detected using machine learning algorithms, but no systems that are particularly successful at detecting it have been produced so far. The relatively new field of deep learning has been used to solve difficult problems across numerous domains. The purpose of this article is to examine various machine learning models for detecting credit card fraud. We compare each model's performance and output. The best possible performance is possible when the SMOTE technique is used. Undersampling the majority (normal) class is a useful strategy for increasing a classifier's sensitivity to the minority class. This work illustrates that our method of oversampling the minority (abnormal) class and undersampling the majority (normal) class together can increase the classifier's performance more than just undersampling the majority class.