Online Fraud Detection Template with SQL Server R Services

In this tutorial, we demonstrate how to develop and deploy end-to-end online fraud detection solutions with [SQL Server 2016 R Services][1] In this template, the online purchase transaction fraud detection scenario (for the online merchants, detecting whether a transaction is made by the original owner of payment instrument) is used as an example. We solve the Fraud Detection as a **binary classification** problem. The solutions are demonstrated using a Online Transaction data, with the following files: * Online Fraud Transactions * Raw transaction data without fraud tags In this template with SQL Server R Services, we show two version of implementation: - **Model Development with Microsoft R Server in R IDE**. Run the code in R IDE (e.g., RStudio, R Tools for Visual Studio) with data in SQL Server, and execute the computation in SQL Server. - **Model Operationalization In SQL**. Deploy the modeling steps to SQL Stored Procedures, which can be run within SQL environment (such as SQL Server Management Studio) or called by applications to make predictions. A powershell script is provided to run the steps end-to-end. The code and documentation of this template can be found [here][2]. The following is the directory structure for this template: * **[Data][3]** This contains the provided sample data. * **[R][4]** This contains the R development code (Microsoft R Server). It runs in R IDE, with computation being done in-database (by setting compute context to SQL Server). * **[SQLR][5]** This contains the Stored SQL procedures from data processing to model deployment. It runs in SQL environment. A Powershell script is provided to invoke the modeling steps end-to-end. See Readme files in each directory for detailed instructions. This template with SQL Server R Services is equivalent to the [template](https://gallery.cortanaanalytics.com/Experiment/Online-Fraud-Detection-Step-1-of-5-Generate-tagged-data-2) in Azure ML Studio. [1]: https://msdn.microsoft.com/en-us/library/mt674876.aspx [2]: https://github.com/Microsoft/SQL-Server-R-Services-Samples/tree/master/FraudDetection [3]: https://github.com/Microsoft/SQL-Server-R-Services-Samples/tree/master/FraudDetection/Data [4]: https://github.com/Microsoft/SQL-Server-R-Services-Samples/tree/master/FraudDetection/R [5]: https://github.com/Microsoft/SQL-Server-R-Services-Samples/tree/master/FraudDetection/SQLR