FRAUD DETECTION SYSTEM USING BAYESIAN NETWORKS

This repository contains a probabilistic fraud detection system using Bayesian networks. The system calculates fraud probabilities based on various transaction factors and provides a tiered risk assessment framework for financial institutions.

Project Highlights

• Implementation of a Bayesian network for credit card fraud detection
• Probabilistic inference using variable elimination algorithm
• Conditional probability analysis across multiple fraud scenarios
• Risk visualization through radar charts
• Tiered risk assessment framework for operational implementation

The Baysesian Network

Implementation

1. Evidence application to relevant factors
2. Variable elimination to handle hidden variables
3. Normalization to obtain valid probability distributions

Requirements

Python 3.7+
NumPy
Pandas
Matplotlib
NetworkX 

Running Instructions

• To run first install the file
• Run python visualize.py.

Citation

If you use this code in your research, please cite:

@article{bayesian_fraud_detection,
  title={Fraud Detection System Using Bayseing Networks},
  author={S. Katel and S. Pokharel},
  year={2025}
}