By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics in sports industry
    Here’s How Data Analytics In Sports Is Changing The Game
    6 Min Read
    data analytics on nursing career
    Advances in Data Analytics Are Rapidly Transforming Nursing
    8 Min Read
    data analytics reveals the benefits of MBA
    Data Analytics Technology Proves Benefits of an MBA
    9 Min Read
    data-driven image seo
    Data Analytics Helps Marketers Substantially Boost Image SEO
    8 Min Read
    construction analytics
    5 Benefits of Analytics to Manage Commercial Construction
    5 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Financial Fraud Detection & Prevention Analytics Strategies
Share
Notification Show More
Latest News
data analytics in sports industry
Here’s How Data Analytics In Sports Is Changing The Game
Big Data
data analytics on nursing career
Advances in Data Analytics Are Rapidly Transforming Nursing
Analytics
data analytics reveals the benefits of MBA
Data Analytics Technology Proves Benefits of an MBA
Analytics
anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security
ai in software development
3 AI-Based Strategies to Develop Software in Uncertain Times
Software
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > IT > Security > Financial Fraud Detection & Prevention Analytics Strategies
AnalyticsCommentarySecurity

Financial Fraud Detection & Prevention Analytics Strategies

Sandeep Raut
Last updated: 2011/07/16 at 12:12 PM
Sandeep Raut
3 Min Read
SHARE
Financial industry is facing the fiercest competition in current time after the economic meltdown. Banks are using all avenues to grow their customer base considering the survival aspect. This has led to tremendous volume growth in banking accounts applications, credit card applications, and financial transactions. Obviously, as a consequence, the number of fraudulent applications and transactions is also rapidly growing.

Financial industry is facing the fiercest competition in current time after the economic meltdown. Banks are using all avenues to grow their customer base considering the survival aspect. This has led to tremendous volume growth in banking accounts applications, credit card applications, and financial transactions. Obviously, as a consequence, the number of fraudulent applications and transactions is also rapidly growing.

With new payment channels like prepaid cards, e-payments & now mobile-payments, fresh opportunities for frauds are emerging.

Some of the industry research shows that:

More Read

data analytics in sports industry

Here’s How Data Analytics In Sports Is Changing The Game

Advances in Data Analytics Are Rapidly Transforming Nursing
Data Analytics Technology Proves Benefits of an MBA
Anti-Spoofing is Crucial for Data-Driven Businesses
Data Analytics Helps Marketers Substantially Boost Image SEO
  • Credit card frauds losses over 8 billion USD per year
  • Insurance policy holders have to pay higher premium up to 5%
  • Total fraud Losses are estimated over 30 billion USD per year

Frauds cane be classified into various categories as below:

  • Credit/Debit/Charge card fraud
  • Check fraud
  • Internet transaction / wire transfer fraud –
  • Insurance or healthcare or warranty claim fraud – over payments, false claims
  • Subscription fraud – use of telecom services with false credentials
  • Money laundering
  • Identity theft or account takeover

Analytics approaches to detect & prevent Frauds:

  • Combine historical fraud data with industry knowledge & external market data
  • Create a proof of concept to test the history data to determine fraud cases
  • If historical data is not available then anomaly detection or outlier detection is used
  • Apply the statistical model for fraud detection
  • Models are based on past spending patterns, demographic information
  • Further text mining & link analysis for probable associations to find deeper frauds
Benefits:
  • Increased number of identification of fraud cases
  • Dollar savings from fraud prevention adds to bottom line
  • Protect the customer base from financial loss or identity theft
  • Improvement in service helps to differentiate in highly competitive market
How companies are using it:
  • Financial institutions using it to identify frauds in leasing contracts
  • Banks are using it to detect credit card, wire transfers, check frauds
  • Insurers are using it to detect fraudulent claims to save the losses
  • Healthcare provider can optimize the medical loss ratio by detecting claims frauds

Sandeep Raut July 16, 2011
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
By Sandeep Raut
Follow:
Founder & CEO at Going Digital - Digital Transformation, Data Science, BigData Analytics, IoT Evangelist

Follow us on Facebook

Latest News

data analytics in sports industry
Here’s How Data Analytics In Sports Is Changing The Game
Big Data
data analytics on nursing career
Advances in Data Analytics Are Rapidly Transforming Nursing
Analytics
data analytics reveals the benefits of MBA
Data Analytics Technology Proves Benefits of an MBA
Analytics
anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

data analytics in sports industry
Big Data

Here’s How Data Analytics In Sports Is Changing The Game

6 Min Read
data analytics on nursing career
Analytics

Advances in Data Analytics Are Rapidly Transforming Nursing

8 Min Read
data analytics reveals the benefits of MBA
Analytics

Data Analytics Technology Proves Benefits of an MBA

9 Min Read
anti-spoofing tips
Security

Anti-Spoofing is Crucial for Data-Driven Businesses

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?