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. It is to intervene fast enough to block bad activity while keeping friction manageable for legitimate users.
Feature design matters a lot...
medium
hard
hard