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Financial Forensics · End Term · 21 Dec 2025 · September 2025 term

Question 40: A fintech company has a ML system that identifies transa…

Question 40

+1 markOne correct option

A fintech company has a ML system that identifies transaction frauds that occur in its system. The model currently has a recall of 80%. The fraud rate, as reported by the company in its system is 15 BPS. On a regular day there are close to above 1 million transactions that happens via the company’s payment system and for each fraudulent transaction the company losses INR 10 on an average. The annual savings (INR) brought in by the ML system is:

  1. A
  2. B
  3. C
  4. D
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Correct answer

  • D
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Question 40 of 40 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 21 Dec 2025, in the September 2025 term (Financial Forensics 18 Dec 25). It carries 1 mark.

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