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Dear Annie Analytics: How can I identify and prevent fraud?

Analytics Advisor, IBM

For all the business questions you’ve been too afraid to ask, Annie Analytics has the answers. Today, Annie advises Frustrated in Philadelphia, who finds herself driven to distraction by the level of financial crimes she encounters in her job at a financial institution. Though financial crimes are indeed increasing in number and sophistication, Annie Analytics suggests that Frustrated seize an opportunity to network and learn about new solutions together with industry leaders, leading law enforcement figures and her peers. What is this opportunity? Keep reading to find out.

http://www.ibmbigdatahub.com/sites/default/files/dearannie_fraud_blog.jpgDear Annie Analytics,

I am frustrated—fraud is everywhere, and it’s affecting my daily life. When a friend of mine had her identity stolen, the whole thing was a nightmare for her. As for me, my credit card has been compromised a few times, but each time the bank notified me before I noticed anything amiss. Even so, I was very inconvenienced—I had to update my financial information everywhere I use automated services.

Now I am working in a new job in which staying ahead of fraudulent activities is vital. My team works to ensure that our company does not end up in tomorrow’s headlines, but doing so is tough. Sometimes I feel as if the bad guys are smarter than I and my team are! Their schemes are constantly changing, and we have difficulty detecting nuances and seeing patterns. Sometimes I even find myself suspecting the organizations with which we are working.

Worse still, our investigators’ workload is rising sharply. They spend too much time weeding through cases that end up not being threats to our company. I wish we could redirect this precious time to handle more important cases that still need addressing. Our counter fraud operations have to be more efficient, effective and productive than they are. I know from previous experience that analytics can help us get the right information from our data to help us quickly stop possible threats and figure out how to solve our problems quickly. But I don't know where to start!

What do you suggest?

Frustrated in Philadelphia

Dear Frustrated,

Fraud is rampant. But even when it seems as if the perpetrators are outsmarting us, new strategies and technologies can help organizations be agile and adaptable, not only responding to schemes but also proactively detecting and deterring them before fraud occurs. Because you are a new addition to your team, your fresh perspective will help your team identify things that might have been neglected—or that once might not have even been possible.

You can find the peace of mind you seek by attending the i2 Summit for a Safer Planet. At this event, you’ll listen to your peers talk about how advanced analytics has helped expand their observation space, enabling early detection of suspicious activities and accelerating investigations. You’ll hear how others are using the latest techniques to stop potential payment card breaches and cut down on the volume of automobile claims fraud. At the summit, you’ll be able to take part in discussions about important emerging trends, such as synthetic ID fraud and illicit uses of the Internet. And you’ll discover new solutions to help you bolster the effectiveness of your counter fraud operations.

Trial and error is a great learning technique—but it’s not how you want to address a situation such as yours. At the i2 Summit for a Safer Planet, you can participate in hands-on labs to become familiar with the latest techniques without compromising your production environment. You’ll also meet others who share your situation, allowing you to connect with people who could become very important to you as you embark in your new job.

Good luck! I hope you find your stress alleviated after you attend the i2 Summit.

Annie