Machine learning in fraud detection performs better when we know the strengths and limitations of different analytic toolkits, and understand the factors that determine accuracy.
As a result of the rise in application fraud due to EMV adoption in the US, Citi is exploring new authentication protocols and new analytics.
When it comes to application fraud, machine learning analytics must be a critical part of a financial institution’s control strategy.
How is application fraud evolving? And what should fraud leaders be doing to manage fraud risk in a digitally connected world?
It’s raining data left and right, and you need to start by understanding what data you already have to fight application fraud and where there are gaps.
When we talk about brute force application fraud and bot-net attacks, what are we really talking about?
Fraud and security are a top priority for financial institutions — but just stopping fraud isn’t enough. Managing fraud is a balancing act that starts with knowing your fraud risk appetite.
Identity theft, also known as third-party fraud losses, is just the tip of the application fraud iceberg. First-party fraud can be 10 times as much.
One of my favorite movie scenes is from Blade Runner. A policeman is interrogating his detainee, asking a series of questions to determine whether the person is a real human-being or a synthetic. Funnily enough, this scene parallels the problems discussed at a FICO roundtable on ‘How to Fight Auto Loan Fraud’ held this week at the AFSA Vehicle Finance Conference & Expo. While none of the 25 attendees resembled Harrison Ford, they agreed they were getting busier looking for synthetics, just a different kind of synthetic. In this case, we were talking about synthetic identities, a type of fraud in which a criminal combines real and fake information to create a new fake identity that is used to open fraudulent accounts and make fraudulent purchases. The use of synthetic IDs in the auto loan industry has been a growing problem in the last 18 months. Attendees at the roundtable... [Read More]