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The most widely used form of payment in the world today is online. But as the number of online payments rises, so does the incidence of payment fraud. This notebook aims to train machine learning models to distinguish between legitimate and fraudulent payments.

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Online Payment Fraud Detection 🔍💳

Overview

Online Payment Fraud Detection is a project designed to identify and mitigate fraudulent transactions in real-time. Utilizing machine learning algorithms, this project analyzes transaction data to distinguish between genuine and potentially fraudulent activities, offering valuable insights to improve security in online payment systems. This solution is especially relevant for financial institutions and e-commerce platforms looking to safeguard customer transactions.

Features

Data Preprocessing: Cleans and preprocesses transaction data for accurate analysis.

Feature Engineering: Extracts key features from transaction data to enhance model accuracy.

Fraud Detection Models: Implements various machine learning models (e.g., Logistic Regression, Random Forest, and XGBoost) for classifying transactions.

Real-Time Detection: Simulates real-time fraud detection for immediate response to suspicious activities.

Performance Evaluation: Analyzes model performance with metrics such as accuracy, precision, recall, and F1-score.

Tech Stack

Programming Language: Python

Libraries: Pandas, NumPy, Scikit-learn, XGBoost, Matplotlib, Seaborn

Optional Integrations: Flask or FastAPI for API deployment

Project Structure:

Online-Payment-Fraud-Detection/

│ ├── data/ # Folder for storing raw and cleaned data files

├── src/ # Folder containing source code

│ ├── data_preprocessing.py # Code for cleaning and preprocessing transaction data

│ ├── feature_engineering.py # Code for feature extraction and transformation

│ ├── model_training.py # Scripts to train and evaluate machine learning models

│ ├── real_time_detection.py # Simulates real-time fraud detection

├── notebooks/ # Jupyter Notebooks for exploratory analysis and model experimentation

├── README.md # Project overview and usage instructions

└── requirements.txt # List of required Python libraries

Installation

  1. Clone this repository:

    git clone https://github.com/hhdjwdabsxsx/Online-Payment-Fraud-Detection.git

  2. Navigate to the project directory:

    cd Online-Payment-Fraud-Detection

  3. Install the required libraries:

    pip install -r requirements.txt

Usage

Data Preprocessing: Run data_preprocessing.py to clean and prepare transaction data.

Feature Engineering: Use feature_engineering.py to extract and transform relevant features.

Model Training: Execute model_training.py to train fraud detection models and evaluate their performance.

Real-Time Detection Simulation: Run real_time_detection.py to simulate real-time fraud detection and test the model on new transactions.

Example Results

Fraudulent transaction identification with high accuracy

Model performance metrics: precision, recall, and F1-score

Insights into features contributing to fraud detection

Contributing

Contributions are welcome! If you'd like to contribute, please fork the repository and submit a pull request.

Contact For questions or further information, please reach out at [yashrajsinha02@gmail.com].

Secure your transactions! 🚀

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The most widely used form of payment in the world today is online. But as the number of online payments rises, so does the incidence of payment fraud. This notebook aims to train machine learning models to distinguish between legitimate and fraudulent payments.

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