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Credit Card Fraud Detection System
MediumML System Design
Design a real-time fraud detection system for credit card transactions.
Scenario: A payment processor handles 10,000 transactions per second. Fraudulent transactions are less than 0.1% of all transactions. The system must flag fraud within 100ms while minimizing false positives (blocking legitimate purchases).
Your Task: Design the fraud detection pipeline.
Key Challenges:
- Extreme class imbalance (0.1% fraud rate)
- Real-time latency requirements (< 100ms)
- Evolving fraud patterns
- Minimizing customer friction from false positives
Design Mode
📝 Your Design Approach
Describe your system design approach. Consider components, data flow, and key decisions.
🎯 Design Questions(Select all that apply)
Q1.Why is real-time feature computation critical for fraud detection?
Q2.How should the system handle the extreme class imbalance (~0.1% fraud rate)?
Q3.What latency requirement is appropriate for transaction scoring?
Q4.How should the model adapt to new fraud patterns?
0 of 4 questions answered