In the banking industry, detecting credit card fraud using machine learning is not just a trend; it is a necessity for banks, as they need to put proactive monitoring and fraud prevention mechanisms in place. Machine learning helps these institutions reduce time-consuming manual reviews, costly chargebacks and fees, and denial of legitimate transactions. Suppose you are part of the analytics team working on a fraud detection model and its cost-benefit analysis. You need to develop a machine learning model to detect fraudulent transactions based on the historical transactional data of customers with a pool of merchants.