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Vertex AI Credit Card Fraud Case Study

A portfolio case study from EAI6020: AI Systems Technology at Northeastern University.

This project shows how I used Google Cloud Vertex AI AutoML to work on a credit card fraud detection problem with an imbalanced dataset. The main focus of this project is not hand-written model code. Instead, it is about business framing, model evaluation, threshold selection, and explainability in a cloud AI workflow.

This public repository is an implementation record and portfolio case study package. It does not include the raw dataset or a fully rerunnable end-to-end workflow artifact, and the exact sampled working file, threshold-comparison artifact, and step-by-step Vertex AI recreation are not included in this version.

Why I included this project

I included this project in my portfolio because it shows a different side of my work.

Many of my other projects are more code-heavy. This one is more about:

  • defining a real business problem
  • choosing an appropriate evaluation method for imbalanced data
  • using Vertex AI AutoML in a practical way
  • understanding false positive vs. false negative trade-offs
  • interpreting model outputs and feature importance
  • making a threshold decision based on business impact

Project summary

For this assignment, I used a public Kaggle credit card fraud dataset and built a fraud detection model in Vertex AI AutoML.

My first training attempt used the full dataset, but it failed because of a cloud resource quota issue. I then created a smaller 20,000-row stratified sample that kept the original 1% fraud ratio and retrained the model successfully.

The final project focused on:

  • Precision-Recall evaluation
  • ROC and confusion matrix review
  • threshold tuning
  • feature importance interpretation
  • business cost trade-off thinking

Key results

According to my original report and Vertex AI evaluation screenshots:

  • PR AUC: 0.989
  • ROC AUC: 0.991
  • Default confidence threshold: 0.5
  • Macro-average F1 at default threshold: about 0.498
  • Selected threshold: 0.75
  • Approximate precision at selected threshold: 96%
  • Approximate recall at selected threshold: 82%

This showed me that a strong overall model score does not automatically mean the default decision threshold is good for a business problem like fraud detection.

Business scenario

I used a simple cost scenario to evaluate business impact:

  • False Negative cost: $500
    Missing a fraudulent transaction creates direct financial loss.

  • False Positive cost: $50
    Incorrectly flagging a valid transaction creates customer friction and support cost.

This helped me explain why threshold choice matters. A fraud model should not be judged only by technical scores. It should also be judged by how well it balances financial risk and customer experience.

Why Vertex AI AutoML

I used Vertex AI AutoML because this course module focused on AI systems thinking, cost-aware ML workflow decisions, trust in AI, and AutoML as part of practical business adoption.

This project helped me practice:

  • cloud-based model training
  • choosing an optimization objective
  • evaluating model behavior beyond accuracy
  • using built-in visual tools for model interpretation
  • thinking about AI as a business system, not only as an algorithm

Best place to start

If you want the fastest overview of this project, I suggest reading in this order:

  1. Portfolio PDF
  2. Project Walkthrough
  3. Original Assignment Report
  4. Course Context
  5. Dataset Note

Repository structure

.
├── README.md
├── .gitattributes
├── .gitignore
├── reports/
│   ├── README.md
│   └── EAI6020_Module_4_Assignment_Cheng_Liu.pdf
├── portfolio/
│   ├── README.md
│   └── EAI6020_VertexAI_Credit_Card_Fraud_Portfolio_Cheng_Liu.pdf
├── assets/
│   ├── README.md
│   └── images/
│       ├── vertex-ai-evaluation-details.png
│       ├── vertex-ai-pr-roc-curves.png
│       ├── vertex-ai-confusion-matrix.png
│       └── vertex-ai-feature-importance.png
├── docs/
│   ├── README.md
│   ├── course-context.md
│   └── project-walkthrough.md
└── data/
    └── README.md

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Portfolio case study from EAI6020 using Vertex AI AutoML for credit card fraud detection, with precision-recall evaluation, threshold selection, and business trade-off analysis.

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