Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Customer Service
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
IBM Applies Big Data Analytics To Fight Against Fraud
IBM Applies Big Data Analytics To Fight Against Fraud

By Barry Levine
March 20, 2014 10:43AM

Bookmark and Share
"The level of fraud and waste in a lot of industries represents a large opportunity" for IBM," said Chris Christiansen, a security analyst with industry research firm IDC. He noted that "anti-fraud was featured in a lot of services engagements [from the company,] but now it's a key focus." IBM's "smarter counter fraud" initiative employs big data analytics.
 



"Smarter counter fraud." That's the name of a new IBM initiative to tackle fraud by using big data analysis in tandem with hundreds of experts.

Fraud and financial crimes cost an estimated $3.5 trillion annually, according to a report from the Association of Certified Fraud Examiners. In its announcement Thursday, IBM said its new "holistic approach" includes Counter Fraud Management Software, which it described as an application that uses the company's big data analytics to "prevent, identify and investigate suspicious activity."

This approach is intended to scour external and internal data sources for hidden relationships between entities, provide visualization of larger fraud patterns and employ machine learning to help prevent similar attacks.

IBM Red Cell

Another component of the initiative is a new counter-fraud intelligence task force, call IBM Red Cell. It will work with the company's X-Force unit, a research and development team that analyzes trends across industries for attack patterns.

New service offerings include Outcome-based Accelerators, where an organization's ability to counter fraud is evaluated and a rapid prototype of protection measures is provided. A Target Operating Model can be generated, which proposes the organizational and technology structure best able to detect, respond to and investigate fraud. A Scale and Manage phase, the company said, can provide fast implementations.

Analytics are conducted in the cloud, and the initial focus will be on medical fraud, insurance claim fraud, public tax fraud and occupational fraud. The IBM Fraud Asset Management System is used to discover medical fraud, the Loss Analysis and Warning System detects insurance claim fraud, and the Tax and Audit Compliance System addresses public tax fraud for governments.

This counter-fraud-as-a-service includes hosting, application management, behavior modeling and scoring, and analytics and referral generation, using a subscription model.

'A Large Opportunity'

Chris Christiansen, an analyst with industry research firm IDC, told us that "the level of fraud and waste in a lot of industries represents a large opportunity" for IBM. He noted that "anti-fraud was featured in a lot of services engagements [from the company,] but now it's a key focus."

There wasn't "any mention of Watson" in the announcement, Christiansen pointed out, referring to the IBM supercomputer whose greater-than-human intelligence is now being applied as a service to various fields, including medical diagnosis. He described Watson as "very interesting in terms of big data and predictive analysis," and said he expected Watson to be a component of these anti-fraud offerings in some fashion.

In a post last month on its corporate blog, industry research firm Gartner predicted that a quarter of large global companies would adopt big data analytics for at least one security or fraud detection incident by 2016. That compares with only 8 percent of global companies doing so today, and Gartner said such big data analytics would show a positive return on investment within the first six months of implementation.

Gartner Vice President Avivah Litan noted on the blog that companies can "cut down on the noise and false alerts in existing monitoring systems by enriching them with contextual data and applying smarter analytics." Big data analysis, she said, also enables the detection of patterns, the pooling of internal and external data in one place, and the ability to find "anomalous transactions" when compared against user profiles.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Customer Service
1.   Oracle To Buy TOA Technologies
2.   Chief Customer Officers' Clout Grows
3.   FTC Wants Fix for Mobile Cramming
4.   Watson's First Consumer-Facing Gig
5.   Social Media Haters Speak Up


advertisement
Chief Customer Officers' Clout Grows
Especially in the tech sector.
Average Rating:
FTC Wants Fix for Mobile Cramming
Overcharges are 'the perfect scam'.
Average Rating:
Social Media Haters Speak Up
Survey says, now showing a little love.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
BlackBerry Messenger Now Available on Windows Phone
BlackBerry's free Messenger chatting and voice app is out of beta and widely available for Windows Phone users, the company said. BBM offers secure messaging, Groups, Voice, Channels and more.
 
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.