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Blazing Fast Fraud Detection with Kafka (<500ms, No Kidding)

  • This article discusses the development of a real-time fraud detection pipeline using Apache Kafka and Python.
  • The pipeline consists of a producer that streams transaction data to Kafka, a feature processor that scales and preprocesses features, a fraud detector that uses a trained K-Nearest Neighbors (KNN) model to predict fraud, and an alert system that logs suspicious transactions and provides metrics and visualizations.
  • Key components of the pipeline include Docker Compose for container orchestration and the use of Kafka topics for data streaming.
  • The results show impressive performance, with some fraud alerts clocking in under 30 milliseconds, an average inference time of less than 500 milliseconds, and a peak throughput of 1200 transactions per minute.

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