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README.md
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---
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license: mit
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tags:
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- machine-learning
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- fraud-detection
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- classification
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- decision-tree
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- scikit-learn
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library_name: scikit-learn
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---
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# π‘οΈ Insurance Fraud Detection
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A machine learning classification model for predicting whether an insurance claim is **Fraudulent** or **Non-Fraudulent**.
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The model uses a **Decision Tree Classifier** trained on insurance claim data after preprocessing, feature engineering, categorical encoding, and class balancing using SMOTE.
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## π€ Model
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**Algorithm:** Decision Tree Classifier
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**Task:** Binary Classification
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**Classes:**
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- Fraudulent
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- Non-Fraudulent
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## π Model Performance
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The following models were evaluated during the project:
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| Model | Accuracy |
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|---|---:|
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| Logistic Regression | 73% |
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| Decision Tree | **80%** |
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| Random Forest | 79% |
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The Decision Tree Classifier was selected for the final application and achieved approximately **80% accuracy** on the evaluation data.
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> Accuracy alone does not fully describe fraud-detection performance. Precision, recall, F1-score, and the confusion matrix should also be considered, particularly when the classes are imbalanced.
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## π Machine Learning Workflow
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```text
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Insurance Claim Data
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β
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Data Cleaning
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β
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Missing Value Handling
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β
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Feature Engineering
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β
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Categorical Encoding
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β
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SMOTE Class Balancing
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β
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Decision Tree Classifier
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β
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Fraud / Non-Fraud Prediction
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