Fraud ­– whether involving credit cards, cell phones or insurance claims ­– is a significant problem, but detecting and preventing it is difficult.

Why is it so difficult? After all, there does exist a simple, fast algorithm that correctly identifies all cases of fraud: Just label every transaction a fraud. True, you'll catch many honest transactions with this algorithm, but I didn't promise precision (catching only the fraudulent transactions), just inclusion (catching all the fraudulent transactions).

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access