An end-to-end use case of implementing fraud detection using FL
Fraud detection is a critical task for many industries, including finance, e-commerce, and healthcare. Traditional fraud detection methods often rely on centralized data collection, where sensitive customer information is gathered and analyzed in a single location. However, this approach raises concerns about data privacy and security, as well as compliance with regulations such as the GDPR.
FL offers a promising solution to address these challenges. By leveraging the power of distributed computing and collaborative learning, FL enables fraud detection models to be trained directly on the devices or local servers of individual institutions, without the need for data sharing. This decentralized approach ensures that sensitive customer data remains private and secure, as it never leaves the local environment.
Implementing fraud detection using FL involves several key steps. Firstly, a consortium of institutions or...