Fraud Detection System for Banking

Requirements Clarification & Assessment

1. Objective:

   • Develop a model to identify fraudulent activities on a banking platform.
   • Implement an SMS notification system to alert customers of potential fraudulent transactions.

2. Data Understanding:

   • Source: Historical transaction data, chargebacks due to fraud, and customer feedback.
   • Attributes: Transaction amount, time, location, card information, user behavior, and merchant details.
   • Quality: Ensure data accuracy and completeness, identify missing values, and assess labeling consistency.

3. Stakeholder Needs:

   • Minimize false negatives to prevent undetected fraud.
   • Balance false positives to avoid unnecessary customer alerts.
   • Ensure real-time processing capability for immediate alerts.

4. Technical Constraints:

   • Handle imbalanced datasets efficiently.
   • Ensure model interpretability and scalability.
   • Integrate seamlessly with existing banking systems and SMS services.