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In the past, credit card companies successfully detected credit card fraud by flagging suspicious transactions and calling human investigators to inspect the transactions. The process included phone calls to card users to ask for verification. However, the process cannot cope with rapidly increasing number of credit card trades in recent years.
To minimize to the loss of billions of dollars, credit card companies, e-Commerce companies, along with banks, utilize big data and machine learning algorithms to combat credit card frauds.
Requirements:
a) What is machine learning?
b) Explain how big data and machine learning algorithms are used to recognize the fraudulent credit card transactions.
c) Briefly explain what data they need for analysis and detection.
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