Design Fraud Detection

Know the Vocabulary

This lesson uses the terms below many times. Read them once now, and come back here when a later section needs one.

• Payment: One card purchase that the system must approve or stop. This lesson also calls it a transaction.
• Fraud: A payment made by someone who is not the real cardholder, such as a thief with a stolen card number.
• Adversary: A person who studies the system and changes their behavior to get past it, as a fraudster does.
• Chargeback: A payment that the cardholder's bank reverses after the cardholder disputes it