HARD
Design a Fraud Detection System
Design a real-time fraud detection system for financial transactions that can identify suspicious patterns with minimal false positives.
Estimated Time: 45 minutes
#ML Pipeline#Real-time#Rule Engine#Feature Store
Solution Overview
Combine rule-based detection with ML models. Use streaming for real-time scoring. Implement feedback loop for model improvement.
Solution Overview
Combine rule-based detection with ML models. Use streaming for real-time scoring. Implement feedback loop for model improvement.
Hints to Get Started
1
Latency requirements for transaction approval
2
Balance between false positives and fraud catch rate
3
Feature engineering for fraud patterns
Components
- •Rule Engine
- •ML Scoring Service
- •Feature Store
- •Case Management
- •Feedback Loop
Detection Methods
- •Velocity checks
- •Behavioral analysis
- •Network analysis
- •Anomaly detection