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README.md
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- tabular-classification
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size_categories:
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- 100K<n<1M
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---
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# PaySim Financial Fraud Detection — EDA & Dataset Analysis
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Applied **Interquartile Range (IQR) method** on `amount` feature. **5,358 outliers detected** (5.4% of data). Decision: retained all outliers because fraud transactions often occur at extreme values.
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Applied **log1p transformation** to `amount` → `amount_log` for cleaner visualization.
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### 3. Descriptive Statistics
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Generated correlation heatmap of all numerical features to identify relationships between balance features and fraud status.
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### 5. Transaction Type Distribution
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Visualized how transactions are distributed across all 5 types.
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### 6. Fraud by Transaction Type (Raw Count)
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Showed where fraud actually occurs across transaction types before normalizing for volume.
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---
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**Finding:** Yes, fraud transactions occupy the extreme upper tail of the amount distribution. The highest-value transactions show disproportionately high fraud rates, indicating that transaction magnitude is a critical risk indicator.
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**Conclusion:** Amount is a strong univariate fraud signal. Fraudsters tend to target high-value transfers to maximize stolen funds per transaction.
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- Legitimate transactions show account depletion in only **~0.3% of cases**
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- This is a massive logical inconsistency: legitimate users rarely empty accounts, but fraudsters consistently do
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**Conclusion:** Balance depletion is one of the strongest fraud indicators in the dataset. This "emptying the well" behavior is a logical fingerprint of fraudulent activity — attackers maximize extraction and disappear.
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- PAYMENT, DEBIT, and CASH_IN have a 0% fraud rate in this dataset
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- Fraud is concentrated in transaction types that move money away from the original account
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**Conclusion:** Transaction type is a critical categorical predictor. A simple rule-based filter (flag TRANSFER & CASH_OUT only) would catch 100% of fraud with minimal false positives.
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- Very Large (>100K): ~1.08% fraud rate
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- **Clear monotonic increase:** Larger amount buckets have exponentially higher fraud risk
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**Conclusion:** Amount binning creates a simple but effective fraud scoring feature. The largest transactions contain ~8x more fraud than the smallest, making amount a strong standalone predictor.
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- tabular-classification
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size_categories:
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- 100K<n<1M
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configs:
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- config_name: default
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data_files:
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- split: train
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path: paysim_fraud_cleaned_sample.csv
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---
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# PaySim Financial Fraud Detection — EDA & Dataset Analysis
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Applied **Interquartile Range (IQR) method** on `amount` feature. **5,358 outliers detected** (5.4% of data). Decision: retained all outliers because fraud transactions often occur at extreme values.
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Applied **log1p transformation** to `amount` → `amount_log` for cleaner visualization.
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### 3. Descriptive Statistics
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Generated correlation heatmap of all numerical features to identify relationships between balance features and fraud status.
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+

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### 5. Transaction Type Distribution
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Visualized how transactions are distributed across all 5 types.
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+

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### 6. Fraud by Transaction Type (Raw Count)
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Showed where fraud actually occurs across transaction types before normalizing for volume.
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---
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**Finding:** Yes, fraud transactions occupy the extreme upper tail of the amount distribution. The highest-value transactions show disproportionately high fraud rates, indicating that transaction magnitude is a critical risk indicator.
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+

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**Conclusion:** Amount is a strong univariate fraud signal. Fraudsters tend to target high-value transfers to maximize stolen funds per transaction.
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- Legitimate transactions show account depletion in only **~0.3% of cases**
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- This is a massive logical inconsistency: legitimate users rarely empty accounts, but fraudsters consistently do
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+

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**Conclusion:** Balance depletion is one of the strongest fraud indicators in the dataset. This "emptying the well" behavior is a logical fingerprint of fraudulent activity — attackers maximize extraction and disappear.
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| 149 |
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- PAYMENT, DEBIT, and CASH_IN have a 0% fraud rate in this dataset
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| 157 |
- Fraud is concentrated in transaction types that move money away from the original account
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+

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**Conclusion:** Transaction type is a critical categorical predictor. A simple rule-based filter (flag TRANSFER & CASH_OUT only) would catch 100% of fraud with minimal false positives.
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- Very Large (>100K): ~1.08% fraud rate
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- **Clear monotonic increase:** Larger amount buckets have exponentially higher fraud risk
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+

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**Conclusion:** Amount binning creates a simple but effective fraud scoring feature. The largest transactions contain ~8x more fraud than the smallest, making amount a strong standalone predictor.
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