Fraud detection

- [Instructor] Data science marketplace is diverse. For example, one of its key markets is fraud detection. As we move toward the digital economy, criminals and crooks are finding various, and ingenious ways to commit fraud against the banking sector. The stakes are high. The loss due to unauthorized credit card transactions alone is estimated to be billions of dollars each year. Therefore, banks are extremely interested in figuring out what's fraudulent, and what's not as fast as possible or as they occur. Until very recently, fraud detection involved significant human intervention. Suspicious activities would be flagged for additional scrutiny. Then a fraud detection specialist looked into the case more closely. One of the major challenges in this approach has been the number of false positives. That is there tend to be too many cases for a human operator to review, and a significant number of…