A typical organization loses an estimated 5% of its yearly revenue to fraud. In this course, you will learn how to fight fraud by using data. For example, you'll learn how to apply supervised learning algorithms to detect fraudulent behavior similar to past ones, as well as unsupervised learning methods to discover new types of fraud activities. Moreover, in fraud analytics you often deal with highly imbalanced datasets when classifying fraud versus non-fraud, and during this course you will pick up some techniques on how to deal with that. The course provides a mix of technical and theoretical insights and shows you hands-on how to practically implement fraud detection models. In addition, you will get tips and advice from real-life experience to help you prevent making common mistakes in fraud analytics.
In this chapter, you'll learn about the typical challenges associated with fraud detection, and will learn how to resample your data in a smart way, to tackle problems with imbalanced data.
Now that you're familiar with the main challenges of fraud detection, you're about to learn how to flag fraudulent transactions with supervised learning. You will use classifiers, adjust them, and compare them to find the most efficient fraud detection model.
This chapter focuses on using unsupervised learning techniques to detect fraud. You will segment customers, use K-means clustering and other clustering algorithms to find suspicious occurrences in your data.
In this final chapter, you will use text data, text mining, and topic modeling to detect fraudulent behavior.
Director of Advanced Analytics at Nike
“I've used other sites—Coursera, Udacity, things like that—but DataCamp's been the one that I've stuck with.”
Devon Edwards Joseph
Lloyds Banking Group
“DataCamp is the top resource I recommend for learning data science.”
Harvard Business School
“DataCamp is by far my favorite website to learn from.”
Decision Science Analytics, USAA