Data mining in financial crime detection
Table of Contents
- Introduction
- Understanding financial crimes
- Types of financial crimes
- Insurance crimes
- Bank fraud
- Online credit card fraud
- Loan default
- Conclusion
- References
SummaryIn this paper, we have discussed different financial crimes that are seen today i.e credit card fraud,
card not present fraud, Loan default, Bank Fraud, Money Laundering, Insurance crime etc. Then we have
discussed how data mining becomes helpful for detection of these types of financial crimes. Today Industry is facing huge losses due to these types of financial crimes, so it would be able to find financial crime through data mining techniques and remove it then it can be great benefit to the industry. In this paper we have suggested a two-tier architecture model for financial crime detection. In the first stage the financial transaction is verified against the rule-based system and is given risk score by the system. These rules contain the human insight. And then this transaction is passed to second stage of data mining technique, which will learn from the past experience of fraudulent transactions and then decide about the current transaction.
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