ER Fuzzy Logic Prototype for Electronic Banking Fraud Detection

Authors- Mohammed Usman, Gregory Maksha Wajiga, Umar Uwaisu Abubakar, Musa Adamu Girei

Abstract-The landscape of online payments has significantly transformed over the years, with an increasing number of individuals opting for electronic payment platforms instead of traditional banking methods. From point-of-sale systems to mobile and virtual banking services, various trends have emerged to facilitate seamless transactions for consumers. However, the rise of electronic fraud poses a serious threat to Nigeria’s financial system, resulting in substantial economic losses and hindering the widespread adoption of cashless technologies due to escalating fraudulent activities. This study aims to educate the public about the issues related to payment fraud across different channels and to assist financial institutions in implementing more effective monitoring and preventive strategies against fraud. In this research, five key features of electronic banking transactions were identified and utilized to establish a universe of discourse, membership functions, and their corresponding linguistic variables for the fuzzy system. These were classified using Fuzzy Inference System (FIS) to enable the detection system to evaluate and categorize transactions as either fraudulent or legitimate.

DOI: /10.61463/ijset.vol.12.issue4.228