cruse associates fraud detection warning, Leveraging Big Data to Revolutionize Fraud Detection
Banking is a massive, complex industry with many facets -- retail banks, credit card lenders, managed investing, risk management -- all of whom approach fraud detection and prevention differently. Credit card fraud makes up around 40% of the total problem. According to Consumer Sentinel Network, U.S. Department of Justice, the total amount of credit card fraud worldwide is $5.55 billion and on the rise.
The sheer volume of loss attributed to fraud is pressuring financial services companies to devise solutions to prevent and identify fraud, while continuing to provide a positive and customized experience for an increasingly sophisticated customer.
In order to achieve a more accurate and less intrusive fraud detection system, banks and financial service institutions are increasingly investing to perfect the algorithms and data analytics technology used to spot and combat fraud. This technology uses large volumes of data being generated at a high velocity to increase confidence and accuracy in fraud detection.
Increasing Accuracy in Fraud Detection
As a highly customer-centric industry, banks and financial service providers need to make sure they are attacking fraud strategically and not disrupting their customers’ banking experience. The key to accurate and non-disruptive fraud detection is to implement emerging technology that allows banks to gain a holistic view of cus...