Reply to post: 2007 outlier

RSA: Fraud may double as 2017 Oz snap bank transfers cut safety nets


2007 outlier

If anything, the low fraud rate in 2007 is more of an outlier in that UK data then any increase seen in 2008. In fact, bar 2007, it looks like the fraud in 2008 is exactly on the trend line. Also, the decreases in 2010 and 2011 (despite the graph saying an increase of 24% for 2011?) seem to indicate that the banks managed to adjust a little to the new system.

I suspect the same thing will happen in Australia. Maybe fraud will increase at first, but banks will improve their fraud detection algorithms. If I were a bank, I'd be building a social graph of bank accounts and transactions between them; transfers between distant nodes in the graph are more suspicious and could be combined with machine learning to flag and delay transactions suspected to be fraudulent.

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