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Data & Analytics

Design a Fraud Detection System (Real-time stream processing)

A low-latency stream-processing system scoring every transaction against behavioral and rule-based models before it completes.

Open and Simulate this Architecture in InfraDraft

Core Architectural Components

Real-Time Event Stream Ingestion

Every transaction enters the pipeline the moment it's initiated.

Feature Store

Serves real-time and historical user/transaction features to the scoring model.

Rule Engine

Deterministic, explainable checks that run alongside the ML model.

ML Scoring Service

Real-time inference producing a fraud probability per transaction.

Decision/Action Service

Turns a score into block/flag/allow within the transaction's latency budget.

Case Management & Manual Review Queue

Routes ambiguous cases to human analysts.

Model Feedback Loop

Feeds confirmed outcomes back into retraining data.