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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.