Here you’ll find everything about the local outlier factor (LOF), including tutorials on implementing the algorithm in Python.
The local outlier factor is a statistical algorithm for identifying outlying or anomalous data points in a dataset. It is a type of unsupervised learning algorithm. As such, it does not require any labeled or pre-defined examples of normal or abnormal data. The LOF algorithm works by measuring the local density of data points in the dataset and by comparing the density of a given data point to the densities of its neighbors. If a data point has a much lower density than its neighbors, it is considered an outlier or anomaly. The LOF algorithm has several advantages. For example, it has the ability to handle high-dimensional data. In addition, it is flexible in terms of the types of data that it can work with. It is widely used in various applications, such as fraud detection, intrusion detection, and anomaly detection in manufacturing.
Credit card fraud has become one of the most common use cases for anomaly detection systems. The number of fraud attempts has risen sharply, resulting in billions of dollars in losses. Early detection of fraud attempts with machine learning is therefore becoming increasingly important. In this article, we take on the fight against international credit … Read more
