π¨ Credit Card Fraud Detection using Machine Learning π Project Overview
This project builds a fraud detection system using machine learning to identify fraudulent credit card transactions from highly imbalanced data. A Random Forest classifier is trained and evaluated to distinguish between genuine and fraudulent transactions with high reliability.
π Dataset
Source: Credit Card Transactions dataset
Samples used: 50,000
Features: 29 anonymized numerical features + Amount
Target: Class
0 β Legitimate transaction
1 β Fraudulent transaction
Class imbalance: ~0.16% fraud cases
βοΈ Workflow
Data loading and exploration
Handling severe class imbalance
Train-test split
Model training using Random Forest
Model evaluation
Feature importance analysis
π€ Model Used
Random Forest Classifier
Handles non-linear relationships well
Robust to noisy and imbalanced datasets
Provides feature importance for explainability
π Model Performance
High precision and recall for fraud class
Effectively minimizes false positives
Captures important transaction patterns
π Feature Importance
Top contributing features were identified using Random Forest feature importance, helping understand which transaction attributes most influence fraud detection.
π§ Key Learnings
Handling imbalanced datasets is critical in fraud detection
Tree-based models perform well without heavy preprocessing
Feature importance improves model interpretability
π Tech Stack
Python
Pandas, NumPy
Scikit-learn
Matplotlib, Seaborn
Jupyter Notebook
π Conclusion
This project demonstrates a practical, industry-relevant approach to fraud detection using machine learning, focusing on performance, interpretability, and business impact.