ML in Finance: Fraud Detection

You’re working on a fraud detection system for a payment processor. Your job is to identify transactions that are statistically anomalous and may indicate potential fraud. Implement an anomaly detection function for financial transactions using the Isolation Forest algorithm. The function should:

• Accept normalized transaction data as input.

• Use Isolation Forest to identify potential fraudulent transactions.

• Allow configuring the expected proportion of anomalies.

• Return predictions ...