Fraud is a serious issue that can have serious consequences for businesses and individuals. Detecting fraud is important because it can help prevent significant financial losses and protect the integrity of a company or organization. There are several reasons why it is important to detect fraud. Fraud detection is a collection of processes and techniques designed to identify, monitor and prevent fraud. In the online business world, fraud, scams, and bad agents are damaging in a number of ways. Companies have to put steps in place to ensure that fraud is detected and stopped before it affects business. Using audit data for fraud detection involves analyzing financial and operational data from a company’s audit to identify patterns or anomalies that may indicate fraudulent activity. Audits provide a comprehensive view of a company’s financial and operational activities, making them a valuable source of data for fraud detection.
Create the Project folder which contains files as shown below
We are building a flask application that needs HTML pages stored in the templates folder and a python script app.py for scripting. knn.pkl is our saved model. Further, we will use this model for flask integration. The training folder contains a model training file.