Interview Questions/System Design/Design a Fraud Detection System
AdvancedSystem-Design
45 min

Design a Fraud Detection System

FraudMLStreamingSecurity
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Interview Question

Design a fraud detection system for online payments with real-time scoring, feature pipelines, and explainability.

Key Points to Cover
  • Feature pipelines with real-time and batch data
  • Model serving: scoring latency, ensemble methods
  • Data storage: feature store, sliding windows, joins
  • Explainability: feature attribution, audit logs
  • Feedback loop: false positives, model retraining
Evaluation Rubric
Strong real-time/batch feature pipeline25% weight
Low-latency model serving design25% weight
Explainability and auditing strategy25% weight
Feedback loop and retraining process25% weight
Hints
  • 💡Think about balancing precision vs recall.
Potential Follow-up Questions
  • How to prevent model drift?
  • What about adversarial fraud patterns?
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