Fraud Analytics: Strategies and Methods for Detection and Prevention

New Trends in Fraud Analytics and Tools

THE MANY FACES OF FRAUD ANALYTICS

In a 2012 article in New Perspectives, Scott Smith and Jon Mueller stated:

When it comes to using fraud analytic tools in place of manual processes, the benefits clearly outweigh the challenges. From increased productivity and efficiency to improved risk assessment, fraud analytics is well worth the effort at any given time. [All entities that use fraud analytics are challenged with data-related issues,] including accessing data, inconsistent formats from various sources, excessive file size, and data import and export issues.¹

This chapter introduces some of the best practices and new tools that can assist with overcoming these data challenges. These include effective emerging strategies for dealing with specific data, and some new resources that are available to assist you in your efforts when using fraud analytic tools.

Current and future technology is our greatest asset in the war against financial crimes; it is therefore imperative that we keep abreast of the newest innovations in fraud analytics. While it often appears that the criminals may be winning, with the use of more sophisticated fraud analytic tools, we are in the process of expanding to a new dimension in detecting and preventing fraud. ...