Scribd
Upload
22 views16 pages

Anu Presentation

The document discusses how financial institutions can leverage data analytics and artificial intelligence to enhance fraud detection capabilities. It describes using the CRISP-DM methodology and Orange's machine learning algorithms like decision trees, ensemble models, and neural networks to develop advanced fraud detection models. The models achieved high accuracy with a precision of 0.99, recall of 0.99, and F1-score of 0.99, indicating the models' ability to accurately identify fraudulent transactions. Orange's visualization tools were also able to provide insightful representations of fraud patterns.

Uploaded by

natashayaseen5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
22 views16 pages

Anu Presentation

The document discusses how financial institutions can leverage data analytics and artificial intelligence to enhance fraud detection capabilities. It describes using the CRISP-DM methodology and Orange's machine learning algorithms like decision trees, ensemble models, and neural networks to develop advanced fraud detection models. The models achieved high accuracy with a precision of 0.99, recall of 0.99, and F1-score of 0.99, indicating the models' ability to accurately identify fraudulent transactions. Orange's visualization tools were also able to provide insightful representations of fraud patterns.

Uploaded by

natashayaseen5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

Advanced Fraud Detection in Banking

Leveraging Data Analytics for Enhanced Security

Your Name and Date


Introduction
•Challenge
•Financial sector faces a mounting challenge with the
pervasive rise of advanced fraud.
•Relentless adversaries adapt continuously, exploiting
vulnerabilities.
•Escalating threat exposes vulnerabilities in traditional
defenses.
•Solution:
•Integration of Artificial Intelligence and data analytics is
the key.
•Provides a proactive and adaptive shield against the
evolving landscape of financial threats.

Baesens, B., 2015. Fraud Analytics Using Descriptive, Predictive, and Social Network Techniques
.

Data Analytics Methodology

Chosen Methodology:
CRISP-DM was selected for this problem solution.
 Structured Approach: Guides the analytics process
step by step.
 Adaptability: Flexible for addressing dynamic
fraud detection challenges.
 Industry Standard: Widely recognized, ensuring a
comprehensive approach.
Benefits:
Understanding Business Context
Iterative Process
 Effective Decision-Making
Angiulli, F. & Fassetti , F., 2017. A Deep Learning Approach for Unsupervised Anomaly Detection in Time Series.
Flowchart For
Proposed Model
Analytics Method
Method Used
Orange's machine learning algorithm Used were
Decision Tree
Tree Ensemble Model
Neural Network
Purpose
To develop models that adapt to emerging fraud patterns.
Final Model Selected
Neural Network due to its results.
Data Input Process

• Data sources include the


NeurIPS 2022 Bank Account
Fraud (BAF) suite and historical
transaction data from Kaggle.

• Orange File Reader Widget was


used to import data in the system.
Data Size in the Model

• A collection of synthetic datasets for testing


machine learning methods in fraud detection was
used. This Dataset contained:
• 284808 Rows
• 31 features
Dataset was split for Train/test purpose:
• 70% for Training purpose
• 30% for Testing purpose
Model Output

• Orange's predictive modeling tools,


particularly Neural Network models,
dynamically adapt to emerging fraud
patterns with 0.97 AUC
• The output includes a refined and
advanced fraud detection system,
contributing to the industry's broader
goals of strengthening security
measures and maintaining customer
trust.
Descriptive Model
• Descriptive model showed relations of Target variable.
• Helps in understanding past relations.
• Below figure presents descriptive analysis of Target Variable with another
variable

9
Provost, F. & Fawcett, T., 2013. Data Science for Business.
Predictive Model
• Predictive model demonstrated clear
results with greater accuracy. AUC of
the model was 0.97

Gairola, S., Soni, J. & Gupta, . A. K., 2017. Credit Card Fraud Detection using Deep Learning.
Evaluation - Accuracy Metrics
Evaluation Metrics: Accuracy Assessment:
• Precision: 0.99 • Precision (Positive Predictive Value):
• Recall: 0.99 Achieved an outstanding precision of 0.99,
• F1-Score: 0.99 indicating that 99% of the predicted fraud
• Matthews Correlation Coefficient (MCC): 0.86 instances were true positives.
• Recall (Sensitivity): Demonstrated a recall of
0.99, showcasing the model's ability to
effectively identify nearly all actual instances of
fraud.
• MCC (Matthews Correlation Coefficient):
The MCC of 0.86 reflects a strong correlation
between the model's predictions and the actual
outcomes, ensuring the reliability of the results.
Expected Outputs

Key Visualizations: Enhanced Interpretation: Conclusion:


Presented graphical
Orange's visualization features The expected outputs surpassed
representations of fraud patterns,
significantly contributed to a more the conventional understanding
showcasing the effectiveness of
accessible interpretation of intricate of fraud detection, emphasizing
Orange's visualization capabilities.
data structures. the crucial role of Orange's
Utilized visualization tools to visualization tools in gaining
Highlighted how visualizations
depict nuanced anomalies, aiding valuable insights and presenting
facilitated effective communication of
in a more thorough understanding them in an accessible manner.
findings to stakeholders, enhancing the
of fraudulent activities.
decision-making process.
Method and Software Effectiveness
Method Effectiveness:
• Leveraged Orange's machine learning algorithms for predictive modeling.
• Demonstrated high precision (0.99), recall (0.99), and F1-Score (0.99), affirming the method's
effectiveness in accurately detecting fraudulent activities.

Software Efficiency:
• Orange's capabilities significantly enhanced the overall effectiveness of the chosen
methodology.
• The software facilitated seamless integration of diverse datasets, ensuring a comprehensive
analysis without compromising on privacy.

Advantages of Orange:
• Enabled efficient data preprocessing, including cleaning, transformation, and handling of
missing values.
• The user-friendly interface of Orange allowed for streamlined modeling, evaluation, and
visualization, reducing the complexity of the analytics process.
Summary of Results

Achievements:
• Successfully developed a robust fraud detection system with high accuracy.
• Orange's machine learning algorithms and visualization tools contributed
significantly to achieving precise and reliable results.
Implications:
• The results affirm the relevance of advanced analytics methodologies, emphasizing
the potential of machine learning in addressing contemporary business challenges
Limitations and Considerations
Limitations of Techniques:
• While achieving high precision and recall, it's essential to acknowledge the
limitations of the techniques employed.
• Addressing potential challenges such as imbalanced datasets, evolving fraud
patterns, and the need for continuous model updates.
Considerations for Future Work:
• The study provides a strong foundation but acknowledges the evolving nature
of fraud.
• Future work could focus on enhancing model adaptability to emerging fraud
tactics and further refining predictive capabilities.
Any Queries about this project?

Thanks

You might also like