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Case Study: Real-Time Payment Fraud Detection (Stripe / PayPal-style)
Walk through a full ML system design interview answer for in-authorisation fraud scoring
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Model interview answer for real-time payment fraud detection: sub-100 ms decisions, 0.1 % positives with asymmetric costs, delayed chargeback labels, point-in-time features and velocity counters, GBDT plus graph signals, PR-AUC and dollar-weighted evaluation, cost-based decision policy and a streaming serving architecture.
Practice questions (5)
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Why PR-AUC Beats ROC-AUC at 0.1% Fraud Prevalence
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Label Maturity and Selective Labels
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Cost-Based Thresholds Across Transaction Amounts
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Training/Serving Skew in a Velocity Feature
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Responding to an Adaptive Fraud Ring
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