Hadoop Blueprints

Machine learning for fraud detection

Fraud detection is a machine learning problem wherein we use historical data to build a model, which we will use to predict the outcome for future situations.

With the help of our cleaned historical transaction data, we will build a fraud detection model. To build the fraud detection model, we will apply the concepts of machine learning. A definition of machine learning is as follows:

"A computer program is said to learn from experience E with respect to some task T and some performance measure P, if its performance on T, as measured by P, improves with experience E."

                                                                  –Tom Mitchell, Carnegie Mellon University

Please note that the detailed explanation ...