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Applied ML & data science

Real-time fraud detection pipeline

Financial-services client · 2023 · real-time inference + monitoring

Fraud detectionReal-timeFinTechGradient boosting

Problem

A financial-services client needed real-time fraud detection on transaction streams — flag suspicious activity within milliseconds of a transaction, with low false positives that would otherwise burn customer-experience budget on legitimate users.

Approach

Real-time inference pipeline against a streaming transaction feed. Feature engineering combining transaction context (amount, merchant, geography, time-of-day) with behavioural signals (velocity, deviation from per-account baselines, peer-group comparisons). Gradient-boosted classifier for the primary scoring layer with explicit thresholds for hard-block, manual review, and pass. Continuous retraining as new fraud patterns emerged.

Stack

Streaming inference · gradient boosting · feature engineering · low-latency serving · monitoring

Outcome

Real-time fraud detection that meaningfully reduced losses across the engagement period, with the false-positive rate kept low enough that legitimate transaction throughput was not disrupted. Validated the pattern of "real-time inference at the transaction edge" rather than batch fraud review hours after the loss is already booked.

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Aru Bhardwaj

Fractional CTO architecting sovereign AI systems for startups and scale-ups across Europe. Custom ML, agentic RAG, and secure LLM infrastructure. 7+ years turning complex data into production intelligence.

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