Analytics Magazine Analytics Magazine, November/December 2014 - Page 44

figh tin g frau d What’s Needed to Succeed? Reactive fraud prevention will always be a handicapped method to prevent losses (and, often, embarrassing public events). Proactive fraud monitoring using advanced analytics, including big data, is required to adapt to the growing threat of fraud. What exactly is big data? We define it by the “4 V s ”: • Volume. Originally described as the size of data versus processing capability, volume today is typically measured simply by size of the data alone. This year, “big” volume might be 25 terabytes (TB); by next year, 250 TB. For comparison, it’s estimated that a jet engine in a Boeing plane generates 20 TB of data for every hour of operation; on one Atlantic crossing, a four-engine jet can create 640 TB of data. • Velocity. This is the frequency of generation and capture of batch, neartime and real-time streams of data. A world of real-time promotional offers (where offers are generated at the moment of interaction) requires lightningfast processing and feedback loops so that things like promotional campaigns can match geolocations, click streams, sentiments and purchase histories. For instance, online-ad technology can operate at 50 to 450 milliseconds (ms) and 44 | a n a ly t i c s - m a g a z i n e . o r g high-frequency stock-trading platforms operate at less than 60 ms for transatlantic round-trip transactions. • Variety. Data no longer fits into neat structures that happily reside in a traditional “database.” The proliferation in the variety of data sources (radio-frequency identification, sensors, social networking, mobile devices, etc.) and types (geospatial, etc.) – coupled with traditional sources (documents, click-stream sets, etc.) – conspire to generate a veritable fur ball. Add unstructured data to the mix, and things get even more complicated. • Virality. This is the speed at which data gets spread from person to person, whether by voice, image or machine. Social networks and the data they generate have created a new dimension of measurement: “going viral.” The monetization of data assets is about understanding factors old and new, and how they work together – not necessarily about capturing, storing or reporting on every piece of information passing near the orbit of a company. It’s about knowing what matters, discarding the rest, and focusing on the “important bits.” To come full circle, employing analytics for proactive fraud monitoring requires: Organizing around the data Companies often address their big data challenges and opportunities by w w w. i n f o r m s . o r g