Comparing Naïve Bayes, Decision Tree and Logistic Regression Methods in Fraudulent Credit Card Transactions

Data mining is utilized to explore banks' data to unravel any hidden scams and detect potential frauds. The aim of this paper is to compare between the Naïve Bayes, Decision Tree and Logistic Regression in fraudulent credit card transactions. Cross-Industry Standard Process for Data Mining (CRISP-DM) is followed to achieve the aim of this research. In terms of accuracy, the best classification model was Logistic Regression with 94.6% accuracy, compared with the Decision Tree and Naïve Bayes that showed accuracy of 89.1% and 90.9% respectively. Other measures were also calculated like time needed to build the model among others.