mu lti- in d u st ry p rob le m
Employing big data
and analytics to
reduce fraud
By Drew Carter and
Stephanie Anderson (l-r)
E
ven a cursory Internet search
of fraud crimes delivers a
multitude of results: the Little
League secretary siphoning off a few thousand dollars, the trader
known as the London Whale losing more
than $6.2 billion for JPMorgan Chase, and
hackers gaining access to customer information at major retailers and international
banks.
Fraud is a multi-industry problem.
Banking and credit are the ones that most
frequently come to mind for the average
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person. However, retail, transportation and
manufacturing are also prone to fraud. In
fact, it would be difficult to name an industry impervious to it. Take the telecommunications industry, for example. According
to the FTC, telecom fraud accounted for
34 percent of its fraud complaints in 2012,
up from 20 percent in 2010. Verizon estimates that fraud costs the industry $4 billion a year. In telecommunications, fraud
is most frequently focused in three areas:
• Defrauding telecommunication
companies
w w w. i n f o r m s . o r g