FIGHTING FRAUD: FROM BIG DATA TO FAST DATA
Credit card fraud is the most visible type of consumer fraud: According to The Nilson Report, global damages caused by credit card fraud reached 21 billion dollars (18.4 billion euros) in 2015. Less known to consumers, wire transfer fraud (see https://blog.ercom.fr/social-engineering-and-its-consequences/) catches the attention of banks seeking to protect their customers, as one single such attack may siphon millions. It is important to realize that the system managing wire transfers is critical to the proper operation of the economy of a country. This system cannot be subjected to major breaches.
Traditional protection methods involve the implementation of expert rules and manual controls to identify and verify the most suspicious operations, but negatively impact the customer journey. Machine Learning is a good candidate to improve the level of protection while reducing friction and manual processing during this journey…
