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README.md
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tags: [agent-demo-track, python]
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short_description: Explainable & transparent AI credit card fraud detection
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---
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# AI-Powered
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tags: [agent-demo-track, python]
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short_description: Explainable & transparent AI credit card fraud detection
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---
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# AI-Powered Fraud Detection Agent
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`agent-demo-track`
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**Track:** 3. Agentic Demo Showcase
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**Built For:** [Hugging Face Hackathon - Multimodal Challenge Playground (MCP)](https://huggingface.co/multimodal-challenge)
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**Team:** Osama Elmahdy, Muhammed Hisham
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---
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## Overview
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This Gradio-based AI Agent helps **merchants, analysts, and fraud teams** assess transaction legitimacy by combining a **fraud detection model** with **reasoning capabilities** powered by Hugging Face’s [`Nemotron-Research-Reasoning-Qwen-1.5B-GGUF`](https://huggingface.co/Nemotron-Research/Reasoning-Qwen-1_5B-GGUF) model.
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Users input transaction details, and the system:
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1. **Classifies the transaction** as fraudulent or not.
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2. Uses LLM reasoning to **explain the decision** and provide **recommendations** for next steps (e.g., flag, approve, monitor).
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---
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## AI Stack
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### Core Idea
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> First, check if a transaction is likely fraudulent using a traditional ML model trained on real-world features. Then, invoke an open LLM agent (via GGUF + llama-cpp) to explain and suggest human-friendly actions.
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### Components Used
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- **Fraud Detection:**
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- Custom-trained classifier (scikit-learn + LIME explanations)
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- **Reasoning & Recommendations:**
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- Hugging Face’s `Nemotron-Research-Reasoning-Qwen-1.5B-GGUF` running locally via `llama-cpp-python`
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- **UI:**
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- Gradio
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