Using Kamanja for Fraud Detection
Credit card fraud is a big business. Over $16 billion are lost annually, and the value is growing as a percentage of transaction value. Modern consumer spending is increasingly cashless and electronic. Transaction volume is mushrooming, and so too are the number of places that store sensitive information. It only stands to reason that people with questionable goals will exploit this moment in time. At the same time, the fraud prevention industry is ripe for disruption. For too long banks and merchants have relied on broad heuristics, rigid rules, and high latency batch processed systems. Greg Makowski is the Director of Data Science at LigaData. He’s written an excellent piece on the topic. First he reviews the statistical methods available for fraud detection today. He then goes on to detail how big data using open source software, and Kamanja in particular, can help level the playing field. You can check out the White Paper on the LigaData website.