Introduction to fraud detection

Fraudedetectie in Python

Charlotte Werger

Data Scientist

Meet your instructor

Charlotte Werger

Hi my name is Charlotte and I am a Data Scientist

What is fraud?

Examples of fraud: insurance fraud, credit card fraud, identify theft, money laundering, tax evasion, product warranty, healthcare fraud

Fraud is

uncommon
concealed
changing over time
organized

Fraud detection is challenging

How companies deal with fraud

Fraud analytics teams:

Often use rules based systems, based on manually set thresholds and experience
Check the news
Receive external lists of fraudulent accounts and names
Sometimes use machine learning algorithms to detect fraud or suspicious behavior

Let's have a look at some data

df=pd.read_csv('creditcard_data.csv')

df.head()

    V1          V2       ...   Amount    Class
0  -0.078306    0.025427 ...    1.77     0
1  0.000531     0.019911 ...    30.90    0
2  0.015375    -0.038491 ...    23.57    0
3  0.137096    -0.249694 ...    13.99    0
4  -0.014937    0.005771 ...    1.29     0

df.shape

(5050, 30)

Let's practice!

Fraudedetectie in Python