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.