Recognizing fraudulent credit card transactions so that the customers of credit card companies are not charged for items that they did not purchase.

Main challenges involved in credit card fraud detection are:

1. Enormous Data is processed every day and the model build must be fast enough to respond to the scam in time.
2. Imbalanced Data i.e most of the transactions (99.8%) are not fraudulent which makes it really hard for detecting the fraudulent ones
3. Data availability as the data is mostly private.
4. Misclassified Data can be another major issue, as not every fraudulent transaction is caught and reported.
5. Adaptive techniques used against the model by the scammers.