This walks you through how to build a Neural Network model for Kaggle's IEEE CIS Credit Card Fraud Competition. It discusses data preprocessing, learning lookup embeddings for categorical columns, visualizing full transaction embeddings, and ultimately ensembling this model with tree-based models to get an improvement in Leaderboard position.
Skimming- This is a technique by which a data skimming device is attached with the card reader slot for stealing information from the magnetic stripes whenever a person swipes his or her card. Additional cameras are also set up for the knowledge of the PIN. Trapping of cards- It is a technique by which once the card is swiped, it remains in the slot itself and it is retrieved later. Surfing via shoulder- If someone wants to help you regarding the withdrawal of money from the ATM, you must be aware of such a person because he or she can stealthily know you confidential PIN. Leaving a card in the ATM- If you leave your card at the ATM counter forgetfully, then it is a virtual scam.
Today, there are few forms of financial fraud that are more prevalent – or more costly – than credit card fraud. It's difficult to establish an exact accounting of the losses incurred each year due to credit card fraud, but one report put the cost at $21.84 billion in 2015. Troublingly, it's a problem that seems to be getting worse, not better, at least in the United States. According to the Federal Trade Commission, reports of credit card fraud went up by 23% last year alone, with no signs of slowing down. It's increasing despite a steady advancement towards more secure cards and transaction methods, leading many of the world's largest merchants and credit card issuers to search for new solutions to the problem.
When I first spotted Shift Technology with their focus on fraud detection for insurance, I assumed I would find a venture in Israel (which is known for smarts in finding the bad guys in cyberspace, as we outlined when we went to Israel on our Fintech global tour). So I was surprised to find that Shift Technology is a Paris based venture. There is a lot more tech innovation in France than the image of economic sclerosis would lead you to assume. The next thing that jumps out at you is that they recently closed a 10m Series A round in a tough market from a top tier VC (Accel Partners). So they must be doing something right.