Social network analysis: An integral component of the SAS® fraud framework for insurance

To detect fraudulent activity, many institutions use transaction monitoring systems, which work very well for individual claims fraud. However, a different approach is needed for monitoring customer behaviour across multiple claims, lines of business and systems in order to identify those that may appear normal, yet operate “below the radar.” This article sheds light on how SAS Social Network Analysis helps insurers detect and prevent organised claims fraud by going beyond transaction and account views to analyse all related activities and relationships at a network dimension.