Suspicious Transactions

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Suspicious Transactions

kyliedude

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Points: 492
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January 10, 2003 at 10:08 am

#106125

Hi, does anyone out there come from a Financial Institution that are, or have been involved with using Data Mining or Analysis Services to spot suspicious transactions in their data? For example spotting abnormal account behavior, sudden changes in accout activity, Money Laundering etc. Any experiences of this kind of work would help me in my project. Thanks!

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mhweiss SSCarpal Tunnel Points: 4284 More actions · Answer 1

I have no experience in this realm, but a quick search on Google for Exceptions Analysis Financial produced 463,000 results...perhaps there is something there that will help you out?

Michael

Michael Weiss

Scorpion_66 SSCertifiable Points: 7891 More actions · Answer 2

What is it your wanting to find out about? Things like that are simply checks against defined "abnormal Behavior" or exceptions to defined "normal behavior".

As an example, Were it to be decided that "abnormal behavior" was defined as three times or more his normal or average deposit, a common scenario is to discard the top 10 percent and bottom ten percent of the values of the deposit, average the remainder, and check the incoming value for a range based on this calculated average, such as greater than 300% of it. A custom app could highlight this transaction as being outside of "normal activity", or flag it as suspicious, etc... Sudden changes in account activity would be calculated similarly, but by counts, possibly days between included, etc....and the customer flagged for suspicious behavior....

It's just a matter of defining what is considered normal, and writing the queries to show it. Or the app.

Antares686 SSC Guru Points: 125444 More actions · Answer 3

I have been told this can vary from user to user, account to account and Financial Institute to Financial Institute. It is best to sit done with the leaders of either a financial institutes fraud department or receivables department to find what they consider checks to make. Unfortunately in large ones things vary between departments as well on this. You also want to do comparative histories because large account holders or even small ones may take that yearly trip so a $500+ may be normal every summer. There is not set criteria anywhere on this, the only thing I know of is when a customer deposits more then $10,000 within a period of time there is a Federal thing on this in the US that it must be flagged and checked into (forget all the details).