as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
develop an algorithm to identify fraudulent transactions.
user
a good algorithm for identifying fraudulent transactions should use a combination of data points such as past purchase history, goods purchased, location of purchase, amount, and time of purchase. it should also flag unusual activity and notify the user of the potential fraud risk.
assistant