The use of predictive analytics technology to detect credit card fraud in Canada
Kosemani Temitayo Hafiz, Shaun Aghili, Pavol Zavarsky · 2016
Credit card fraud losses in Canada continue to increase despite the availability of various prevention technologies. To reduce financial loss and reputational risks, credit card companies and financial institutions in Canada have adopted fraud monitoring solutions such as Predictive Analytics Technologies (PAT) as part of fraud prevention programs to mitigate credit card fraud. This research paper focuses on the creation of a scorecard from relevant evaluation criteria, features, and capabilities of predictive analytics vendor solutions currently being used to detect credit card fraud. The scorecard provides a side-by-side comparison of five credit card predictive analytics vendor solutions adopted in Canada. From the ensuing research findings, a list of credit card fraud PAT vendor solution challenges, risks, and limitations was outlined.