Credit Card Fraud Detection using the R Language

Predictive data analytics employs statistical methods on recorded data to predict future events. R language’s strong focus on statistics provides the necessary tools to create a predictive model, including libraries that enable the application of techniques like regression and time series analysis on any dataset. Furthermore, R provides robust support for data visualization.

In this project, we’ll use credit card data to detect fraud. We’ll complete the following steps in this project:

• Exploration of the dataset using the modules available in R to view and plot the information.
• Creating a logistic regression for credit card fraud detection.
• Creating a decision tree model for the same purpose.
• Use the Receiver Operating Characteristic (ROC) curve to compare the models.