For fraud management applications, we are looking to predict fraud score (probability of fraud). So that we can process credit card and insurance applications and claims. We define one-year observation window and 6 months to one-year performance window. Fraud are marked as 1, no fraud is marked as 0 based on past investigation of customers. […]
Predominately, there are two kinds of solutions in the market for fraud detection and prevention 1) Based on rule engine 2) based on AI. Its not possible to support the instant decision making by using the AI engine, since it can’t handle the real time data directly. For instant decision making, rule engines are used […]
As mentioned in previous article, if we want to make instant decision about a transaction, application or claims, we need to implement a rule engine such as FICO’s blaze advisor, IBM’s ODM, SAS or Redhat’s decision manager. Before we implement the rule engine, we need a mechanism to generate the rules. There has been different […]
Fraud Definition: An organization loses typical 5% of revenue due to fraud each year. As per Oxford dictionary, fraud is defined as wrongful or criminal deception intended to result in financial or personal gain. The most common characteristics of frauds are being uncommon, impeccably concealed, time evolving and carefully organized. Fraud cases are covered by lots […]
To keep the things simple, it’s good to involve the people to manage the process. Process is managed by team based in Europe and India. There are two kinds of processes Rule generation process managed by data scientist Rule management process managed by rule engine expert Rule generation process using Fraud Analyser: is managed by team […]
Techniques to detect and prevent Frauds: Expert driven fraud detection and prevention technique represents a good starting point and complementary to other approach used. Alternatively, used techniques should be accurate, operationally efficient and cost efficient. All these qualities can be observed in statistically used credit score card or customer churn model. These solutions are data-based […]