In continuation of our series in Data Science, we previously looked at A Data Science Approach in Product Analytics. One of the pressing tasks, especially at FinTech and e-commerce companies such as PayPal, Stripe, eBay, etc., is to recognize fraud before it occurs and stop it. In this article, we will see how companies do just that, using data.
E-commerce websites often transact huge amounts of money. Whenever a large sum of money is moved, there is a high risk of users performing fraudulent activities, e.g. using stolen credit cards or laundering money. Machine Learning excels at identifying fraudulent activities,