Data Analytics for Fraud Detection
Course Objectives:
1. To know the types of fraud and how to asses, analyse and prevent.
2. How data analytics helps in evaluating and analysing fraud
3. Learning Various analysing tests and apply them to various real time
applications.
Course Outcomes:
1. Learns fraud and its types along with detection and prevention with various
techniques.
2. Understands the importance of data analytics in evaluation and analysis.
3. Know about various tests that helps in analysing data.
4. Analyses the fraud in real-time applications.
5. Applying the analysis in Money Laundering and Zapper fraud.
UNIT -I: Introduction to Fraud and Fraud Detection
Defining Fraud, Types of fraud, Assess the risk of Fraud, Recognizing Fraud,
Fraud detection and prevention, data driven fraud detection, Fraud detection
techniques, Fraud cycle, Fraud analytics process model.
UNIT II: The Data Analysis Cycle
Data Mining Vs Data analysis and analytics, data analytical software, anomalies
versus fraud within data, Evaluation and analysis-Obtaining Data Files,
Performing the Audit , File Format Types, Preparation for Data Analysis,
Arranging and Organizing Data.
UNIT III: Data Analytical Tests
Benford’s Law, Number Duplication Test, Z-Score, Relative Size Factor Test
Same-Same-Same Test, Same-Same-Different Test , Even Amounts.
UNIT IV: Schemes-I
Check-Tampering Schemes- Electronic Payments Fraud Prevention, Check
Tampering, Payroll Fraud -Data and Data Familiarization, Data Analysis, The
Payroll Register, Payroll Master and Commission Tests, Register Disbursement
Schemes- False Refunds and Adjustments, False Voids, Concealment, Data
Analytical Tests.
UNIT V: Schemes-II
Money Laundering- The Money-Laundering Process, Other Money Transfer
Systems and New Opportunities, Audit Areas and Data Files, Zapper Fraud -
Point-of-Sales System Case Study, Quantifying the Zapped Records, Additional
POS Data Files to Analyze, Missing and Modified Bills, The Markup Ratios,
Conclusions and Solutions.
TEXT BOOKS:
1. Fraud and Fraud Detection, A Data Analytics Approach By SUNDER GEE
Wiley, Copyright © 2015 by Sunder Gee, Published by John Wiley & Sons, Inc.,
Hoboken, New Jersey.
2. Fraud Analytics using Descriptive ,Predictive and Social network
techniques: A Guide to Data Science for Fraud detection By Bart Baesens,
Veronique Van Vlasselaer and Wouter Verbeke. Copyright @2015,SAS Institute
Inc., Cary, North Carolina,USA.
