Data analysis for fraud detection
data analysis techniques for fraud detection
Fraud is a million dollar business and it is increasing every year. About 45% of companies worldwide have fallen victim to economic crime in 2004 and 2005, according to the Global economic crime survey 2005 of PriceWaterhouseCoopers. Fraud always involves one or more persons who, with intent, act secretly to deprive another of something of value, for their own enrichment" (Davia et al 2000). Fraud is as old as humanity itself and can take an unlimited variety of different forms. However, in recent years, the development of new technologies has also provided further ways in which criminals may commit fraud (Bolton and Hand 2002). In addition to that, business reengineering, reorganization or downsizing may weaken or eliminate control, while new information systems may present additional opportunities to commit fraud.