The domain of fraud detection in credit card transactions presents several challenges. With the overwhelming number of credit card transactions processed each day, machine learning algorithms and techniques need to have very high accuracy which are scalable in order to handle the gigantic volumes of data.

Another challenge would be the difficulty to detect the frauds in the recorded credit card dataset as data is skewed on a higher level. This leads to an imbalanced dataset where the number of genuine credit card transactions is much more than the fraudulent ones.

In this post, I would like to share my insights of how machine learning can be used to predict whether a credit card transaction is fraudulent.

#naive-bayes #machine-learning #logistic-regression