Fraud Analytics Primer

August 29, 2016

In this digital age, nearly everyone engaged in fraud leaves behind a trail of digital footprint, that can be unearthed. This is a huge opportunity for companies to prevent further harm, but Fraud detection (much less proactive Fraud prevention) is often only taken seriously after one is a victim and the damage has been done.

 

Fraud analytics

 

Rapidly evolving technology can be both an ally and an enemy – it opens up brand new avenues for fraudsters but also provides options for organisations to stay ahead.

 Enter Fraud Analytics:

Fraud analytics is the use of technology and analytical techniques along with human intelligence to detect potential fraudulent activities before or after they have been committed.

The Process:

Fraud analytics involves:

  • Diligent gathering of data from multiple touch points
  • Storing the data for a reasonable timeframe
  • Mining the data, or rummaging through the truckloads of data with a fine-tooth comb, to detect patterns, discrepancies and red herrings
  • Translating the findings into actionable insights that a company can then use to either detect or prevent fraudulent activities

The Benefits:

  • Identify hidden patterns: Unsupervised or non-rules-based data analyses driven by analytics technology can help you unearth new patterns, trends, fraudulent schemes, and scenarios that simply cannot be detected by traditional approaches.
  • Enhance and extend existing efforts: Analytics does not have to replace what you are already doing. Instead it can also serve as an extra layer of security for added punch to your existing efforts.
  • Cross the divide: Fraud analytics can pull data from across an organization into one central repository to help build a true, enterprise-wide approach.
  • Measure and improve performance: Analytics helps you take the guess work out and gives you definitive answers based on tangible, real data. Companies are awash with data, and the data tells the story.

Organizations trying to battle crime and Fraud is nothing new. Fraud Analytics is an additional, sophisticated tool at a company’s disposal to prevent and combat this scourge.

Imarticus Learning is pleased to announce a 2-day executive development workshop devoted entirely to Fraud Analytics in the coming months. Please stay tuned for more details. Visit Imarticus.org

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