Fraud is a major problem in today's digital world. Whether it is data analytics or data sciences, data analytics has become an integral component of fraud prevention. Data analytics is the process of data manipulation to identify patterns and predict trends based on data sets. The data can be in various formats like text, audio, video, images, or even data generated by sensors.
In simple words, data analytics is a data-driven approach to help you make better decisions. It helps organizations detect, assess, and prevent fraud in 2021. Data analytics courses are the latest trend among MBA students because data is so important to every aspect of life today.
This blog post will discuss how data analytics can help us detect, assess, and prevent fraud in 2021!
How does Data analytics help to detect, assess and prevent fraud in 2021?
In today's data-driven world, data analytics has become an integral part of financial services. While data is not new to the industry, collecting and processing it at scale did pose a number of challenges in past years. However, with advancements in technology and data storage capabilities, data analytics as a tool for fraud detection has gained prominence within banks, especially after the 2008 economic meltdown.
Nowadays, organizations are generating large amounts of structured/unstructured data from various sources like customer service calls, social media platforms, etc., which can be analyzed using tools like machine learning, artificial intelligence (AI), predictive modeling, or deep learning algorithms, among others to predict potential threats on their business operations including risk management strategy thereby reducing operational costs & improving profitability by increasing revenue streams through better data-driven decisions.
However, data analytics is not just about data storage and analysis of unstructured data to identify anomalies within the data sets; it also focuses on methods that can be used by organizations to prevent frauds in real-time - a key area where financial institutions are looking at for growth opportunities as demand from millennial customers increases for mobile banking and increased online transactions via e-commerce portals among other channels.
In order to support their digital transformation journey & build a robust risk management strategy, banks and other institutions have started investing heavily into analytics capabilities by hiring data scientists and data analysts to leverage the power of data for fraud detection in real-time.
According to a recent report by MarketsandMarkets, the global data analytics market was valued at $16.06 billion in 2016 is expected to reach $73.47 billion by 2021, growing at a CAGR of 28% during the forecast period from 2017-2021.
Some key areas where data analytics is being used extensively include:
Customer profiling- understanding customer behavior patterns using unstructured data sets such as social media posts or email communication logs;
Fraud Detection- monitoring transactions on data sources across data systems and data formats to identify suspicious activity;
Risk Assessment- showing the correlations among data sets of different entities within an organization or between organizations.
This is a great opportunity for anyone who wants to learn data analytics, as there are plenty of job opportunities for data specialists.
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Imarticus Learning offers data analytics courses in India that help professionals from diverse backgrounds understand concepts of data analysis. This course enables you to analyze large amounts of data using various methods such as statistical tools, pattern recognition, etc.
Thus, you'll be able to solve complex problems related to web intelligence, predictive modeling & simulation techniques or extract information quickly with minimal time lag through the Business Analytics course.