Analytics Magazine Analytics Magazine, November/December 2014 - Page 48

onl in e ban k i ng c u stome r s Real-time fraud detection in the cloud By Saurabh Tandon T his article explores how to detect fraud among online banking customers in near rea time by running a combination of learning algorithms on a data set that includes customer transactions and demographic data. The article also explores how the “cloud environment” can be used to deploy these fraud detection algorithms in short order to meet computational demands at a fraction of the cost it otherwise takes in setting up traditional data centers, and acquiring and codifying new hardware and networks. 48 | a n a ly t i c s - m a g a z i n e . o r g Real-time decision-making is becoming increasingly valuable with the advancement of data collection and analytical techniques. Due to the increase in data processing speeds, the classical data warehousing model is moving toward a real-time model. Cloud-based platforms enable the rapid development and deployment of applications, thereby reducing the lag between data acquisition and actionable insight. Put differently, the creation-to-consumption cycle is becoming shorter, which enables corporations to experiment and iterate with their business w w w. i n f o r m s . o r g