Anomaly Detection

Explanation

Imagine a factory producing thousands of identical widgets. Most are perfect, but occasionally, a faulty one slips through the cracks. Anomaly detection is like a super-vigilant quality control system that automatically spots these unusual items.

Examples

Consumer Example

Think about your credit card company. They use anomaly detection to flag suspicious transactions that don't fit your usual spending habits. If you suddenly make a large purchase in a different country, it might trigger an alert.

Business Example

Imagine a cybersecurity team protecting a company's network. Anomaly detection systems can identify unusual network traffic patterns that might indicate a cyberattack or data breach. This allows the team to respond quickly and prevent serious damage.