Bank fraud detection scenario

[rhodesian]

Hi all,

I am working as a dba in a small bank and I got an assignment to develop an in-house tool for detecting fraud scenarios. I know the technical part of manipulating multiple data sources and mining data, but do you happen to know what tests/scenarios the banks use to detect fraud across all types of transactions (e.g. deposits, cards, online banking, employee fraud, wire and ACH etc)? Thanks.

[peg]

Hi all,

I am working as a dba in a small bank and I got an assignment to develop an in-house tool for detecting fraud scenarios. I know the technical part of manipulating multiple data sources and mining data, but do you happen to know what tests/scenarios the banks use to detect fraud across all types of transactions (e.g. deposits, cards, online banking, employee fraud, wire and ACH etc)? Thanks.

I suspect most of that would be proprietary information as each agency would hope to do a better job then their competition. I would ask your management how THEY want to define a "Fraud". Ultimately it will be their responsibility as to the end result (successful or not).

Certainly a review of transactions and the type of purchasing a particular customer does. For example, if Customer X consistently buys clothes and groceries with their card, all of a sudden, large electronic purchases show up... A flag may be raised. Raise enough flags, and then they will start to ask questions.