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Demystifying the Black Box of Machine Learning

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Nowadays, it is common to use machine learning to detect online fraud. In fact, machine learning is everywhere. Due to its independent nature and human-like intelligence qualities, machine learning does, at times, seem like an inexplicable “black box.” But truth be told, machine learning doesn’t have to be like that.

Here is what you should know if you decide to give “computers the ability to learn without being explicitly programmed.”

Before choosing fraud detection technologies that leverage machine learning, consider the advantages and disadvantages of the different algorithms together with the demand for transparency, prediction accuracy and ability to adjust to the rapidly changing landscape (be it fraud or others). In order to be truly successful, the specific algorithm you use, combined with your domain knowledge, can make all the difference. Here are a few algorithms and factors you should consider:

Artificial Neural Network (ANN; or their more advanced counterpart –...(continued)

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