Fraud & Risk
Why Machine Learning for Fraud Detection?
As more and more online retailers incorporate machine learning as part of their fraud mitigation strategies, it is increasingly important for companies to leverage their data to the fullest extent possible. This whitepaper delves into how data can be broken down into categories and used by algorithms, which in turn can be combined to provide a risk score. The focus then shifts to data labels, how data sets can be utilized to derive predictions, and the role precision and recall play in establishing risk thresholds. The paper concludes with a look at how the effect of machine learning on fraud analysts and Ravelin's approach to working with clients.