Task is to execute the process for proactive detection of fraud while answering following questions:
- Data cleaning including missing values, outliers and multi-collinearity.
- Describe your fraud detection model in elaboration.
- How did you select variables to be included in the model?
- Demonstrate the performance of the model by using best set of tools.
- What are the key factors that predict fraudulent customer?
- Do these factors make sense? If yes, How? If not, How not?
- What kind of prevention should be adopted while company update its infrastructure?
- Assuming these actions have been implemented, how would you determine if they work?