How to innovate faster than the fraudsters

Fraud and security intelligence is probably one of the fastest growing areas for analytics. In fact, SAS saw a 44 percent growth in the sale of fraud solutions last year. Why is that? Two reasons:

  1. If you’re looking for innovation in the marketplace, a lot of the innovation is coming from the fraudsters. Just when you think you've got them, they’re changing their methods.
  2.  The ROI for reducing fraud is tremendous. If we can reduce fraud by 10 to 20 percent in a financial institution or even a retailer, that makes a big difference to the bottom line.

The type of fraud we’re seeing – and using analytics to prevent – is not unsophisticated. Today’s fraud schemes aren’t coming from a couple of people hacking away in a garage somewhere. These are big, global businesses. So organizations have to stay ahead of the next fraud scheme, and analytics can help them do that.

Stu Bradley, SAS Senior Business Director for the Security Intelligence Practice, demonstrated one example last week at SAS Global Forum. In 2013, explained Bradley, a network of criminals stole $45 million from ATMs across 20 countries in a matter of hours. How did they do it? By hacking two credit card companies, duplicating debit cards, and programming the cards to have unlimited balances and withdrawal limits at ATMs.

Sounds sophisticated. And it is. But an equally sophisticated system for predicting and monitoring fraud outbreaks could have stopped these criminals in their tracks.

In the coming months, you’ll continue to see analytics advancements in the fight against fraud and cybercrime.  As retailers and banks start to feel the effects of customer data breaches, analytics will continue to play a role in helping to slow those things down.

Your mission should be to innovate faster than the fraudsters. To do that, you need advanced analytics.

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