Big Data Analytics: Fraud Detection and Risk Management in Fintech - PowerPoint PPT Presentation

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Big Data Analytics: Fraud Detection and Risk Management in Fintech

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Big data analytics is crucial for fraud detection and prevention as well as risk management. As per the Association of Certified Fraud Exmainers’ Reports to the Nations, organizations proactively using data monitoring can minimize their fraud losses by an average of about 54% and identify scams in half the time. – PowerPoint PPT presentation

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Title: Big Data Analytics: Fraud Detection and Risk Management in Fintech


1
Big Data Analytics
Fraud Detection Risk Management in Fintech
By Smartinfologiks
2
Introduction
Similar to as fraudsters are becoming more
comprehensive in their attacks, so too are
avenues companies can guard their data. Big data
analytics is crucial for fraud detection
prevention as well as risk management. As per the
Association of Certified Fraud Exmainers Reports
to the Nations, organizations proactively using
data monitoring can minimize their fraud losses
by an average of about 54 identify scams in
half the time. Big data analytics is alternating
the patterns in which companies prevent fraud.
AI, machine learning, data mining tech stacks
help counteract the hydra of fraud attempts
affecting more than 3 billion identities each
year. In short, big data analytics techniques
can help identify fraudulent activities offer
actionable reports used to monitor prevent
fraud- for businesses of all sizes.
3
What is Big Data Analytics?
Earlier companies used to rely upon manual
reviews employee tips to unfold fraud. Not so
luckily, audits informer reports often reveal
fraud after the fact that is, the scam was
already successful. The manual process of hunting
out fraud is also time-consuming, error-prone,
inefficient, missing a lot of instances
concerning fraud that could have been otherwise
preventable. Big data analytics has completely
revolutionised the entire process. It refers to
the process of examining huge complex data sets
to uncover patterns, correlations, other
helpful information that can inform business
decisions. The process uses specialized software
an algorithm to analyze huge amounts of data
from multiple sources to identify signs of fraud
risks.
4
Why is Big Data Analytics Essential?
In this era where the amount of data is reaching
a mesmerizing size, we continuously hear about
big data analytics in every business every
system installed. So, why is important for
companies? Data analytics enables the analysis
of huge volumes of data. Rather than driving
decisions by analyzing large amounts of data over
a good amount of time, a lot of quick decisions
can be made with this data processed with a few
techniques. Foresight may be required for the
decisions to be made in this instance, big data
analytics makes it a lot easier to make
predictions. Cheers to this, we can better
understand customer requests.
5
Why is Big Data Analytics Essential?
For instance, the most visited sites, products,
most sold products are easily identifiable, the
data acquired from a survey on consumer opinions
can be easily analyzed. Hence, proper products
services can be built enhanced. Additionally,
this processed analyzed data can help develop
algorithms that are likely to minimize the
workload or time spent in the company. With the
help of determined patterns, it guards the
company from harm by identifying anomalies in the
data. Though, big data analytics is now employed
in almost every field, one of the most essential
fields today is the banking fintech sector
giving rise to a focus on fraud analytics risk
analytics.
6
What Are Risk Analytics Fraud Analytics?
Risk analytics utilizes data analytics to detect,
evaluate, control risks. This involves
gathering analyzing extensive data to identify
potential risks, assess their likelihood
impact, formulate strategies to mitigate
high-priority risks. Fraud analytics, on the
other hand, employs data analytics to uncover
prevent fraud. It entails collecting analyzing
vast amounts of data to identify patterns
anomalies indicative of credit card fraud,
identity theft, insurance fraud, other
potential crimes. A significant advantage of big
data analytics in fraud risk analytics is the
ability to handle extensive intricate data.
This enables real-time decision-making through
data analytics techniques.
7
The Role of Big Data Analytics in Preventing
Detecting Frauds
  • Big data analytics is useful in preventing fraud
    using multiple techniques, like data mining,
    machine learning, anomaly detection.
  • Heres how big data can help prevent fraud
  • Recognizing patterns of fraudulent activity, like
    using stolen credit card numbers or making
    diverse petite payments in a short period.
  • Anomaly detection in data, like if a customer all
    of a sudden initiates a large purchase that is
    out of character by their normal spending
    patterns, accessing their account from an unknown
    device.
  • Mitigating fraud risk by recognizing
    acknowledging the primary causes of fraud fraud.

8
Big Datas Influence Concerning Risk Management
in Fintech
Big data has huge risk management potential as it
delivers a more sophisticated holistic view of
potential dangers. It enables companies to
identify trends, detect abnormalities, unwrap
hidden insights that traditional methods might
miss.
9
  • Data Collection and Integration

Businesses need to have robust data collecting
and integration processes to exploit big data for
risk management. They need to collect data from
multiple sources and combine it in a common
single database or data warehouse. Businesses can
employ advanced data integration techniques to
link data from different systems and sources,
offering a unified perspective of hazards.
  • Predictive Modeling and Data Analysis

Predictive modelling and data analysis are vital
components of big data risk management. Machine
learning and predictive modelling are advanced
analytics approaches that might find patterns,
correlations, and trends in data. Businesses can
develop prediction models that evaluate the
chance of particular risks occurring by assessing
historical data. This provides them with the
proficiency to derive proactive preventive
measures and develop risk mitigation plans.
10
  • Real-Time Risk Monitoring

Real-time risk monitoring is often facilitated by
big data and analytics, enabling companies to
respond quickly to dangers. Businesses can
identify evolving dangers and drive quick action
by continuously monitoring data sources and
applying real-time analytics. Real-time
monitoring enables proactive risk management and
helps companies overlook or mitigate potential
losses.
11
Conclusion
Technology is taking over the fintech companies
at an unprecedented rate increasing the rate of
risk prevailing in this domain. The application
of Big data in the fintech industry,
characterized by fraud detection, prevention, and
risk management, has been successful in offering
better solutions to the risks. It delivers a more
accurate and precise prediction of their
potential results. Seize the frequency and
severity of fraud and risk, so that you can
identify and acknowledge issues before they
become major issues. With Smartinfologikss
advanced, robust Analytics 101- the best business
intelligence and analytics software, companies
can run reports and identify trends.
Smartinfologiks delivers a way to assess whether
your fraud and risk management strategy is
working.
12
Thank You
sales01_at_smartinfologiks.com
91 9867948621
www.smartinfologiks.com
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