AI AutomationFinancial Services / Payment Processing

Guardian ML — Real-Time Fraud Detection & Graph Analysis

Domain / Scope
FinTech Risk Engine / Graph Analytics
Year
2026
Duration
18 weeks
Primary metric
96.7% precision at 79ms p95
79ms
P95 end-to-end inference latency from Kafka event to decision response
96.7%
Fraud detection precision — catches true fraud without blocking legitimate users
0.04%
False positive rate — down from 12% with legacy rule-based system
1.2M
Daily transaction volume processed without infrastructure bottlenecks
87%
Fraud ring detection recall — catches coordinated multi-account attacks
99.99%
Decision API uptime SLA maintained throughout peak shopping events

The Problem

System Bottlenecks & Technical Friction

High-throughput payment processors face sophisticated fraud patterns that bypass traditional static rule-based filters. Rules-based detection produces high false positive rates (often >10%), frustrating legitimate users and driving checkout abandonment. Batch ML models retrained on weekly schedules lag emerging fraud rings by several days. Payment networks need sub-100ms real-time ML inference capable of graph entity resolution across cards, IPs, devices, and phone numbers without adding checkout friction.

Our Engineering Approach

Architecture Design & Implementation

Guardian ML is a dual-model fraud detection architecture combining gradient-boosted trees with real-time graph network analysis. Incoming transactions trigger 180+ low-latency feature calculations in Redis. An XGBoost model scores transaction anomalies in <30ms, while Neo4j executes sub-graph traversals to identify coordinated attack rings sharing device or identity fingerprints. Apache Flink streams transaction events, executes feature extraction, and returns decision payloads with explanation codes in 79ms P95 latency.

Technical Architecture

System breakdown & stack.

8 core subsystem modules
01

XGBoost gradient-boosted tree ensemble trained on 24M labeled transactions with SMOTE class balancing

02

Neo4j graph database modeling entity relationships across 8.7M cards, devices, IPs, emails, phone numbers

03

Apache Flink stream processing: Kafka ingestion → feature extraction → model inference → Neo4j graph query

04

Redis feature store with <5ms P99 read latency for 180+ precomputed transaction features

05

Cassandra time-series storage for 90-day rolling transaction history and behavioral analytics

06

FastAPI decision API with circuit breakers, fallback to rule-based logic on model service failure

07

Prometheus + Grafana observability: P50/P95/P99 latency, fraud recall, false positive rate, throughput

08

React ops dashboard with real-time fraud ring visualization, transaction drill-down, manual review queue

XGBoostNeo4jKafkaFlinkFastAPICassandraRedisReactPrometheusGrafana

Engagement Timeline

Engineering delivery schedule.

Total: 18 weeks
Weeks 1–3

Historical data extraction, EDA, feature engineering research, SMOTE balancing pipeline

Weeks 4–7

XGBoost hyperparameter tuning (Optuna), cross-validation, threshold calibration for precision/recall

Weeks 8–11

Neo4j graph schema design, entity resolution logic, Cypher query optimization, fraud ring detection algorithms

Weeks 12–14

Apache Flink stream processing pipeline, Kafka integration, Redis feature store build

Weeks 15–17

FastAPI decision API, circuit breakers, fallback logic, Prometheus instrumentation, React ops dashboard

Week 18

Shadow mode parallel-run validation, latency load testing, production cutover

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