Company: Stripe_4nov
Difficulty: medium
Fraudulent Merchant Detection Problem Description Stripe processes billions of dollars worth of transactions every day. As guardians of the Internet ecosystem, it is our duty to ensure that legitimate merchants can safely transact with their customers, and that we quickly detect and block illegitimate or fraudulent activity. To detect fraud, we employ various ML models at scale such as Radar to detect fraudulent transactions as they come in. These models examine a variety of different variables about incoming transactions to determine their authenticity. One input we can look at is the outcome from the credit card networks like Visa/Mastercard. These networks communicate with banks and provide different response codes to reflect the outcomes of credit card transactions. While they act as a safety net, if we have enough data to determine a merchant is fraudulent, we should proactively block them to protect consumers from malicious activities like usage of stolen cards. Today, we will be