March 25, 2009

Cary, N.C.-based SAS is introducing a new fraud framework that it says can support detection and alert generation, alert management and case management, and includes the new SAS Social Network Analysis solution. Industry-specific business rules, models and other capabilities will help banks and other organizations to monitor and manage fraud.

The SAS Fraud Framework offers detection, alert and case management to help reduce fraud loss and prosecute fraudsters. The framework includes technologies to prevent, detect and investigate fraud, such as business rules, anomaly detection, predictive models and social network analysis. According to the company, the SAS Fraud Framework is designed to help detect and prevent line-of-business fraud and cross-channel enterprise fraud, and can be used to help increase fraud detection rates, reduce false positives and streamline investigative resources. At the core of the framework is a profiling engine that scores individuals, accounts, products and networks based on rules, fraud scores and links to known fraudsters. An enterprise view of fraud exposure and risk is provided by consolidating alerts from multiple systems.

The alert-management solution receives the results of the detection/alert generation process and manages the alerts to a short-term resolution. This component assembles alerts from multiple monitoring systems, associates them with common entities and can provide an investigator with a more complete perspective on the risk of a particular beneficiary. For each generated alert, the alert management system assigns a risk score based on the specific characteristics of the activity. Investigators will also have the ability to prioritize alerts and organizations can automatically assign investigators or analysts based on rules and requirements set by the user.

The SAS Social Network Analysis component is new software featured in the framework designed to help investigators detect and prevent fraud analyzing all related activities and relationships within a network, such as shared address, telephone numbers, employment, account ownership and other key transactional data.

SAS is targeting the Framework to different verticals. For the banking industry, the SAS Fraud Framework can help provide enhanced fraud detection, greater insight into managing Suspicious Activity Reports (SAR), and improved operational efficiency with decreased fraud losses. The SAS framework can be applied to many types of bank fraud including: internal, first-party, third-party, wires, checking, payments, cards, ATM and mortgage. The integrated, automated processes and controls help banks achieve better and quicker insight into their fraud exposure, and identify steps they can take to reduce this risk and prevent loss.

ABOUT THE AUTHOR