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Plastic Card Fraud Detection using Peer Group Analysis

Plastic Card Fraud Detection using Peer Group Analysis

This video was recorded at NATO Advanced Study Institute on Mining Massive Data Sets for Security. Fraud detection describesmethods that attempt to identify fraudulent activity as quickly as possible. From a statistical methods perspective there are broadly two approaches to fraud detection [1]. These relate to whether we intend to detect known examples of fraudulent activity or whether we intend to detect novel forms of fraudulent behaviour. In the former case pattern matching techniques are used in the latter case anomaly detection techniques are deployed. Peer group analysis is an unsupervised method for monitoring behaviour over time [2] and it can be used for anomaly detection [3]. In the context of plastic card fraud detection, peer groups are built for each account, where a peer... Show More


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