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Real-time fraud detection system using Azure Event Hub and Stream Analytics

Project Objective

Implement a real-time fraud detection system for banking transactions using Azure Event Hub and Stream Analytics. Detect fraudulent transactions based on various business rules.

Data Format

Sample Transaction Data:

  • Transaction ID: 123456789
  • Timestamp: 2023-06-15 09:30:12
  • Customer ID: 987654321
  • Transaction Type: Purchase
  • Amount: $500.00
  • Merchant: XYZ Electronics

Workflow

azureStream

1. Setting up Azure Event Hub

  • Add an Event Hub resource in the Azure portal.
  • Create a new Event Hub and configure settings like the number of partitions and partition key.

2. Getting Real-Time Data from Logic Apps into Event Hub

  • Add a Logic Apps resource in the Azure portal.
  • Configure a Logic App with a trigger to generate transactions.
  • Use a Loop action to generate multiple transactions.
  • Use the Compose action within the loop to create transactions in the desired format.
  • Send the generated transaction data to Azure Event Hub using the Event Hubs connector.

3. Setting up Azure Stream Analytics and SQL DB

  • Add a Stream Analytics resource in the Azure portal.
  • Configure Stream Analytics to perform SQL-like operations on the data.
  • Define output bindings for Azure SQL Database to store results.
  • Create output bindings for both "NormalSQLTable" and "FraudSQLTable".

4. Computations

  • Detect fraudulent transactions using various methods.
  • Calculate z-scores to find transactions with amounts significantly deviating from the mean.
  • Perform k-means clustering to identify anomalies in the transaction data.
  • Detect transactions with an unusually high transaction rate from a customer.

Note

  • The amount of data generated depends on the number of throughput units defined in Event Hub.
  • Azure Stream Analytics doesn't support internal orchestration, but you can output data to Power BI in real-time to set alerts for detected fraud.

Conclusion

This project showcases how to implement a real-time fraud detection system for banking transactions using Azure Event Hub and Stream Analytics. By leveraging these Azure services, you can detect and prevent fraudulent activities in real-time.