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Financial Forensics · End Term · 22 Dec 2024 · September 2024 term

Question 11: A fintech company has a ML system that identifies transa…

Question 11

+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 99.9%. The fraud rate, as reported by the company in its system is 20 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

  • B
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Question 11 of 32 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 1 mark.

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