How can machine learning be used to detect fraudulent transactions in financial services?

Instruction: Discuss the approach, including data preprocessing, feature selection, and the choice of algorithms.

Context: This question explores the candidate's ability to address challenges in the financial sector using machine learning, emphasizing fraud detection.

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I would design fraud detection as a real-time risk scoring system with tight feedback loops. The goal is not just to classify fraud accurately in hindsight...

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