Analytics have long been a big part of efforts to stem losses from fraud. Unfortunately, the time needed to compute the results often limited the benefits. With an estimated $3.5 trillion dollars expected to be lost this year due to fraud, according to a report from the Association of Certified Fraud Examiners, any improvement in fraud detection analytics would provide a big payback.
SAP brought attention to the opportunity that the latest analytics technology offers companies looking to cut down on fraud. At the SAPinsider Governance, Risk and Compliance 2013 event in Las Vegas (and hosted by Data Informed’s parent company Wellesley Information Services), SAP announced its SAP Fraud Management application. It runs directly on production systems, and SAP’s customers can use it to create rules to detect fraud as it happens.
The real-time capability of SAP Fraud Management is enabled by SAP’s HANA platform, which allows the application to run in-memory along with the data it analyzes.
“This means that organizations can not only detect fraud in real-time, but potentially prevent the underlying transactions from completing before the business is harmed,” said Steve Biskie of High Water Advisors in a post on his blog. “Fraud Management application also has predictive capabilities, including sophisticated network analysis (the identification of statistical patterns between disparate transactions to identify potential relationship) and a scoring engine that allows users to easily change analytic weightings on-the-fly to rule out false-positives.”
SAP Fraud Management joins a growing number of options to identify fraud in real time. Pervasive Software, for example, offers a solution aimed at healthcare organizations. Opera Solutions’ Consumer Finance and Risk Signal Hub has been used in the finance and insurance industry for several years. And developers can create custom apps using any analytics platform that runs in-memory.
Michael Nadeau is publisher of Data Informed. Reach him at email@example.com. Follow him on Twitter at @menadeau.