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Google·Software Engineer·Technical Phone Screen·Senior

Senior
May 2026

Summary

Interviewed for a data engineer role at Google and got a question around fraudulent transaction detection. Not much else to report, it was a single technical problem and I had to think through it on the spot.

Questions Asked (1)

Q1

How would you design a system or pipeline to detect fraudulent transactions?

System DesignData ModelingRoot Cause Analysis
Author's notes

I went straight into talking about flagging anomalies in transaction volume and velocity, which felt right at the time.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements such as scale, latency, and accuracy targets, then outline a high-level pipeline from data ingestion to real-time scoring and feedback loops. Focus on the trade-offs between rule-based and ML-based detection, and how to handle imbalanced data and evolving fraud patterns.

Pro tip: Emphasize the importance of a feedback loop where flagged transactions are reviewed and labels are fed back to retrain models, and discuss how to handle false positives to avoid customer friction.

1. Clarify Requirements

Ask about transaction volume, latency requirements (real-time vs batch), acceptable false positive rate, and data available (e.g., user history, device info).

2. High-Level Architecture

Propose a pipeline: data collection -> feature engineering -> model training -> real-time scoring -> alerting/review -> feedback loop. Mention components like Kafka, Flink, and a feature store.

3. Modeling Approach

Discuss using a combination of rules (for known fraud patterns) and machine learning models (e.g., gradient boosted trees, neural networks) to detect anomalies. Address class imbalance with techniques like SMOTE or class weights.

4. Real-Time Scoring & Scalability

Explain how to serve models with low latency using a model server (e.g., TensorFlow Serving) and scale horizontally. Mention caching features and precomputing aggregates.

5. Monitoring & Iteration

Describe monitoring for model drift, fraud pattern changes, and system performance. Set up A/B testing and continuous retraining with new labeled data.

Key Points to Mention

  • Handling class imbalance (fraud is rare) with techniques like resampling, anomaly detection, or cost-sensitive learning.
  • Feature engineering: transaction amount, frequency, location, device fingerprint, time since last transaction, etc.
  • Trade-off between false positives (blocking legitimate transactions) and false negatives (missing fraud).
  • Use of ensemble methods or hybrid approach combining rules and ML.
  • Real-time vs batch processing: use stream processing for immediate detection.
  • Feedback loop: human review of flagged transactions to generate labels for retraining.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.