petragrunheidt/fraud-prevention

A repository for a simple fraud prevention system in ruby

Fraud Detection API

Description

This API is a simple Rails application designed to detect fraud in a series of transactions.

Specs

• Ruby: 3.3
• Rails: 7.2
• Postgres

How to Run

Docker

To start the application using Docker and set up the initial database, execute the following commands:

1. Build the Docker images:

docker compose build

2. Start the application:

docker compose up

3. Create the initial database:

docker exec fraud rails db:create

How to Test

To run tests using Docker, follow these steps:

1. Bash into the container:

docker exec -it fraud bash

2. Run the tests with RSpec:

rspec

Special tests

There is a dedicated test designed to evaluate the success rate of the fraud detection algorithm. You can run it with:

rspec spec/requests/multiple_transactions.rb

This test populates the database with data from the CSV file, selects samples from the database, and checks whether the model accurately predicts the has_cbk value in more than 90% of the cases.

Data analysis

The reports of data analysis on the data sample can be found in the analysis_journals folder. The conclusions from these reports served as a basis for the development of the detection algorithm.