How social network analysis can be used for detecting fraud?

Social Network Analysis, one of the emergent data mining methods in fraud analytics, is a technique which represents the entities as nodes and relationships between the entities as links. Representing the relationships reveals a lot more information than simply listing out the properties of the entities.

How do you detect fraudulent activity?

10 warning signs of fraud

1. Unexpected charges on your account.
2. Unrecognizable accounts on your credit report or inaccurate information.
3. Bills or statements unexpectedly stop arriving by US mail.
4. Checks are significantly out of order on your bank statement.
5. Banks and financial institutions freeze accounts unexpectedly.

What is fraud analytics in banking?

Fraud detection is a set of activities undertaken to prevent money or property from being obtained through false pretenses. Fraud detection is applied to many industries such as banking or insurance. In banking, fraud may include forging checks or using stolen credit cards.

How do fraudsters use social media to steal information?

Fraudsters often use social media sites to trick people into parting with their money or personal details using a variety of phishing style posts and direct messages. They will also send direct messages to people trying to extract money or personal data which can then be used to access bank accounts and cards.

What is transaction monitoring in banking?

Transaction Monitoring is a core segment of any bank’s Anti-Money Laundering (AML) program. Transaction monitoring systems, from such vendors as Oracle AML (Mantas), NICE Actimize, SAS AML, GVPO, and others, are set up to monitor customer transactions, trades, wires, payments, and other activities.

What does a transaction monitoring analyst do?

Responsibilities: Monitor transactional alerts generated by various detection systems. Looking at Politically Exposed Persons (PEPs) on a day to day basis without compromising the requirements of Global and PCB AML Policies. Review and ensure the company meets obligations in relation to AML/CTF Act.

How do you perform transaction monitoring?

How does Transaction Monitoring work?

1. Identify suspicious behavior – at FI and end-customer level.
2. Increase automation – minimize unnecessary alerts by tailoring scenarios to customer or transaction risk and focusing on regulatory priorities.
3. Increase effectiveness over time – tune rules without tech support.

What is SNA fraud?

Swecker refers to SNA as “looking for the malignant social network.” Criminals are committing fraud 24 hours a day, so generally, what you find when you build it out is a broader fraud network such as an organized Russian crime group, he said.

What is social network analysis (SNA) and how does it work?

However, with the introduction of social network analysis (SNA), investigators are now able to detect data patterns within and across product lines as a potential crime ring or group is developing, saving companies from losses as the crime ring further develops.

What is the SNA measure?

SNA measures Density: Density is the general level of linkage among the social network nodes. It is defined as the number of edges in a portion of a social network to the maximum number of edges that theoretically make up the social network [Wassermann and Faust 1995].

What is SNA in SAS?

SNA is one of four parts of SAS’s “fraud framework,” which includes business rules, anomaly detection and predictive models that work together to score and flag individuals, accounts, products and networks. The framework consolidates alerts from multiple systems and provides an “enterprise view of fraud exposure and risk.”