Fraud Detection using logistic regression

Shounak, I haven't worked with Fraud/Risk/Credit data before, and I understand the amount of precision with which modeling works in those domains. I've also heard the very small modeling population like in your case 0.2%. There are ways to weigh your sample using weighted response modeling techniques. Basically, you skew your sample to contain 0.5% or 1% response. Usually, this may not be required in your case, since I believe I've heard modeling with 0.2% is quite common.