Fraud schemes are becoming more complex and sophisticated. This is where preventative data monitoring comes in. Fraud data analytics detect fraud 58% faster than conventional methods. With data monitoring in place, your organization stands a far lower risk of fraud loss.
Here’s a look at how data analytics can help prevent and detect fraud.
Data Analytics Is A Powerful Tool
The main benefit of data analytics is that the systems can handle large amounts of data at once. Data analytics are also able to pinpoint the exact area of a fraud breach. Once detected, data analytics can advise you on how best to deal with the breach in the best manner. Here are some of the key advantages of data analytics:
- Repetitive tests are automated
- Fraud is identified before it reaches the press
- All your transactions are searched automatically
- Accurate fraud impact calculation
- Focuses on suspicious transactions
- Tightens internal controls
Fraud Data Analytics Assist Many Enterprises
Both the private and public sectors suffer from various fraud attempts. Data analytics can help fraud detection in both these areas. Here are the key areas where data analytics are most useful.
Fraud Detection In Pharmaceuticals
Fraud is most common in the over-inflated medicine pricing. This is frequent within the governmental Medicare platform. Data analytics assists by processing approval timelines for generic drugs. It then contrasts them against the medication that is awaiting approval. Analytics also detect fraudulent pharmacy refill cases by detecting stock discrepancies.
Health insurance scams are another method used by scammers. Anyone who’s offered to help you find the best health insurance for an extra fee is a scammer.
Tax returns are a fraud hotspot. Not all taxpayers are honest when completing their tax returns. Many people find loopholes and illegal means of reducing their taxable income. Conventional methods are slow in detecting tax fraud. Data analytics have been used by the Internal Revenue Service (IRS) for years. These systems use predictive measures to assess tax return reliability in individual cases.
Financial Fraud Detection
Financial fraud has been around for a long time. Data analytics make use of behavioral analysis of financial patterns. Real-time detection allows institutions to better understand suspicious activities. Patterns are derived, and systems will flag any unusual transactions to prevent fraudulent activity. Bitcoin investment scams are also on the rise. These include Bitcoin Ponzi schemes, malware downloads, and Bitcoin phishing impersonators.
Many retail returns also suffer from fraudulent transactions. Many shoppers commit wrongful returns on goods and benefit from very loose return policies. Data Analytics help to uncover cases where customers take advantage of questionable return policies. This helps to protect retailers from excessive losses and returned inventory storage.
Cyber fraud can take place over email, social media platforms, and fake call centers. Fraudsters leave behind behavioral data which serves as clues for data analytic systems. Over time, patterns are created which help in the building of predictive models. These models collect data from social media movements, emails, and individual spending habits. This all helps to detect emerging scams before it’s too late.
Security Fraud Detection
Data analytics help in the collection of data around terrorist threat behavior. This includes suspicious conversations online, strange purchases, and unusual geographical relocations. Intelligence agencies can use real-time analytics to identify data patterns of security breaches. Data analytics can also apply to public security systems, such as schools and universities.
Stay On Top Of Scammers With Anti-Fraud News
Data analytics help you to identify suspicious activity before it’s too late. Anti Fraud News is a website designed to inform you about the latest scamming tactics. Catch the latest updates on phishing, employment scams, advanced fee fraud, and more. No one is immune to being scammed, so make sure you stay informed first.