Bank fraud detection scenario

[rhodesian]

Hi all,

I am working as a dba in a small bank and I got an assignment to develop an in-house tool for detecting fraud scenarios. I know the technical part of manipulating multiple data sources and mining data, but do you happen to know what tests/scenarios the banks use to detect fraud across all types of transactions (e.g. deposits, cards, online banking, employee fraud, wire and ACH etc)? Thanks.

[WingedPanther]

I would start by defining the typical fraud schemes, and figure out what indicators for those would be.

Also, think about how you would try to defraud your customers, and figure out what the signs of that activity would be and code for that.

[rhodesian]

Thanks for the advice.

This assignment was given to me with a tight deadline, I thougt that someone might have already implemented such types of fraud scenarios. Have you coded such types of fraud scenarios?

[WingedPanther]

Nope. It's not a very common thing.