Data Mining

Financial services are experienced by consumers and businesses. This may be with a checking or savings account, credit cards, loans, and other offerings. With all of these services available, there is a level of financial fraud that occurs. This may be with credit card charges not done by the credit card holder, fake checks, or other issues. In ana analysis, these would be an anomaly or outlier. For the discussion question, please choose a form of financial fraud a consumer may experience and an approach or method the bank may to detect this. Please respond to two of your peer’s posts. Thank you. Need 350 - 400 Words. No plagiarism.Two References. Post 1: Financial frauds are very headaches if both customers and banks will not take it seriously, according to a report made by ACI, 47% of American has fallen to this type of fraud, and it is also estimated that the loss due to this is around$27 billion in the year 2018. That’s is why banks will keep close eye on every transaction of a customer and detects an odd transaction. Customer are only responsible to pay up $50 if the card has been used by unauthorized person, the rest of the amount will be taken care by credit card companies. Credit card companies are always watching your usual activity, like your buying habits and your regular location like city and region of using card, how much you regularly spend money etc., if you live in one location and suddenly there is a transaction on your credit card on different locations then the bank spots it and it will decline the transaction and notify the customer if the transaction is correct or frauds to authorize or decline the transaction. The banks will not authorize any other transactions until customer verifies transaction till that the card will be on hold. The bank will analyze transactions based on your monthly credit card report, if you spend $1000 every month and suddenly you spend $3000 then also your card will deny the transaction and verify if it is customer or not. The banks will use variety of algorithms to track the frauds, they use huge amount of data collected from customers and analyzing it. The frauds can be informed using text messages and emails. Customers also can raise flags for fraud transaction in their account to the banks and credit card companies. Reference Staff, T. (2018, November 20). How Do Credit Card Companies Spot Fraud? Retrieved August 04, 2020, from https://www.fool.com/the-ascent/credit-cards/articles/how-do-credit-card-companies-spot-fraud/ Need Reply Post 200 - 250 Words No plagiarism. One reference. Post 2: Financial fraud is possible with the online money transactions and credit or debit card utilization so these activities happen due to money or personal purchases from other accounts so these persons can mislead the account users and make illegal activities to theft the money or use the credit card or debit card information to make a personal purchase. Online financial fraud is known as identity theft or cyber hacks for our online transactions (Tan et al., 2019). These days most of the users are using accounts online so it has become easier to hack the transactions and few cybercriminals can create a fake website that is mimic to the government website, nonprofit organization, or charities and they will all transaction amounts. These days it has become more common in cities and towns across the globe. There are many ways and solutions to detect and prevent network breaches, security breaches, and identity theft. Ponzi schemes are one of the major financial crises in the world and still, people are believing them and investing money for better interest rates and prices. Real estate investments, mortgage loans, and fraud lending are like financial fraud in the market so users and normal people must authenticate the websites, firms, and organizations before investing money or make any transaction for product purchase. Big companies can do financial fraud by altering the share value and capturing new customers for higher cost shares (Financial Frauds on Financial Performance of Banking Industry, 2019). The major loss for financial fraud or online fraud is people will not get the reimbursement or compensation for their loss. Identity theft is one of the major considerations in financial fraud so organizations or system users must focus on their system security and ensure to follow better protocols on online transactions. Credit score and credit ratings will be impacted so it is mandatory to focus right policies while making transactions. References Financial Frauds on Financial Performance of Banking Industry. (2019). International Journal of Innovative Technology and Exploring Engineering Regular Issue, 8(12), 4578-4584. Tan, P., Steinbach, M., Karpatne, A., & Kumar, V. (2019). Introduction to data mining. 2nd ed. New York: Pearson. Need Reply Post 200 - 250 Words. No plagiarism. One reference.