StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems - Essay Example

Cite this document
Summary
This essay talks about the payment cards which became more and more widespread all over the world. The ratio of fraud operations with them becomes higher. That’s why the developing of effective methodology of risk management looks like to be “a must”. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems
Read Text Preview

Extract of sample "The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems"

The methodology of risk decreasing and fraud operations avoiding with payment cards of International Payment Systems (IPS). In fact, the payment (credit) cards became more and more widespread all over the world. Therefore the ratio of fraud operations with them becomes higher. That’s why the developing of effective methodology of risk management looks like to be “a must”. Frankly speaking, you will not be able to find enough necessary information anywhere, because the methods of fraud detection are security-guarded and frequently changed.

Here we tried to observe briefly the most fundamental methods of statistical analysis, systems analysis of multiple risks and Bayes confidence net theory theory. The main idea of statistical analysis is creating a universal antifraud filter: mechanism, which can detect fraud operations, can be used on all levels from the merchant, then payment gateway, and, at last, bank-acquirer. Content analysis meets these requirements. Content analysis is a quantitative and qualitative method of documents investigating, characterized with conclusions objectivity, procedure rigidity and means quantification processing with further results interpretation.

For fraud operations detecting and negative results avoiding we can use some methods of content analysis: variance analysis for some independent factors influence on feature under review; cluster analysis for object and their features classification; longlinear analysis for statistical testing of hypothesis about the system of simultaneous even and plural relations in features group; analysis of causes for causal relations modeling among features with the help of statistical equation systems; regression analysis for regression dependence investigation among dependent and independent features; factor analysis for getting general information about the relation structure among the features of object under consideration with concealed factors detaching; correlation analysis for dependence detecting among numerical variates, one of which also depends on many chance factors.

The great quantity of these methods gives us an opportunity to choose the most suitable for each specific task, for each kind of database. Systems analysis of multiple risks is used when we have no considerable database of certainly fraud operations, which represents different fraud kinds. The idea of using this methodology lied in developing of system classification by degree and level of risk and situation recognition of given classification. Alaric, a company, which specializes on banking systems, insists that fractal systems of fraud prevention, based on adjusted rules with using Bayes logic, are more effective then neuronets.

But the high result production of there systems can be reached only after 4 months for banks with great quantity of emitted cards and high branched acquirer system. The neuronet can help to create a mechanism of operation stream evaluation, which will be based on special rules. Firstly, these rules are defined by experts, later changed and corrected with system. This function is necessary system component, as the fraud methods are changed as times goes by, and detecting them mechanically, we’ll miss more refined and, surely, more detrimental for a bank.

The process of Bayes confidence net theory is learned in 2 phases: Identification of net topology. Especially it’s concerned missing chains and movement direction. Learning of analogous values for given net topology. The second task is trivial enough. For topology identification can be used next algorithms of local optimization with calculation of partial derivatives of first order; local optimization with calculation of partial derivatives of first and second orders, for example, Newton method; stochastic optimization algorithms, for example, Monte-Carlo method, algorithms of global optimization etc.

References 1. P Chan, W Fan, A Prodromidis & S Stolfo. 1999. Distributed data mining in credit card fraud detection, IEEE Intelligent Systems. 14(6): 67–74. 2. J. Stolfo, David W. Fan, Wenke Lee and Andreas L. Prodromidis.1999. Credit Card Fraud Detection Using Meta-Learning: Issues and Initial results, IEEE Intelligent Systems, 20(7): 67–85.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Methodology of Risk Decreasing and Fraud Operations Avoiding with Essay”, n.d.)
The Methodology of Risk Decreasing and Fraud Operations Avoiding with Essay. Retrieved from https://studentshare.org/finance-accounting/1535566-the-methodology-of-risk-decreasing-and-fraud-operations-avoiding-with-payment-cards-of-international-payment-systems
(The Methodology of Risk Decreasing and Fraud Operations Avoiding With Essay)
The Methodology of Risk Decreasing and Fraud Operations Avoiding With Essay. https://studentshare.org/finance-accounting/1535566-the-methodology-of-risk-decreasing-and-fraud-operations-avoiding-with-payment-cards-of-international-payment-systems.
“The Methodology of Risk Decreasing and Fraud Operations Avoiding With Essay”, n.d. https://studentshare.org/finance-accounting/1535566-the-methodology-of-risk-decreasing-and-fraud-operations-avoiding-with-payment-cards-of-international-payment-systems.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems

E- Payment System

Thus modern systems need to be incorporated for better and smoother transaction.... E- payment System Executive summary With the rapid development of networking technologies during the early 1990's human being witnessed the commercialization of internet and massive growth in the field of electronic commerce (E-commerce).... The report will highlight on the different existing methods of online payment and will try to explain the pros and cons of the methods....
6 Pages (1500 words) Assignment

Social Networks to Maximise the Competitive Advantage of a Company

hellip; Expensive trading and transactions offshore is now replaced with a global village exchanging and interacting 24 hours within seven days, thus changing the landscape of business operations and systems.... Module name and code Title of your project Name Student ID Wordcount- 5,061 Executive Summary/Abstract Social media and network is in a revolution that alters the relation of peoples and business operations.... methodology……………………………………………………………… 4 II....
20 Pages (5000 words) Dissertation

Ectronic Payment Systems: A User-Centered Perspective and Interaction Design

E-Payment Name of the Student: Name of the University: Date: Executive summary Magnitude and frequency of online business and e-payment has been increased manifold in recent years and at present, e-commerce companies are using multiple e-payment systems in order to collect payment for goods purchased by customers.... The report has conducted a brief literature review regarding e-payment systems in order to highlight their importance for an e-commerce company....
10 Pages (2500 words) Essay

Mobile Payment Processing Systems and Analytics

This compromises the retailer's service delivery and it can culminate in craftiness and fraud among clients.... Name: Course: Professor: Date: Mobile Payment Processing systems and Analytics Introduction Mobile payment processing technology is a revolutionary measure in the payment processing industry.... This has also resulted in a total breakdown of some systems where no backup of documents... hellip; The advent of the mobile payment system has encouraged these merchants....
4 Pages (1000 words) Research Paper

Key Features of the Payment Systems

payment systems involve the contribution from cash-dominated systems, to non-cash payment instruments.... So alternative payment systems often distinguishes between a large-value transfer system (LVTS) and a small-value transfer system (SVTS).... Risks In payment systems Legal risks are one aspect of the need for certainty about how the system operates.... Stage 4: Most industrial countries had reached stage 4, predominantly with DNS systems, by the 1970s or 1980s....
5 Pages (1250 words) Essay

Customer Satisfaction In Internet Banking

A banker or bank has been in the status of a formal financial institution whose primary activity is to serve as a payment agent for customers to borrow and lend.... This essay describes customer satisfaction in internet banking.... This paper outlines features of internet banking, distance banking service, the process of customer satisfaction, marketing theories, buyers reflect the use of Self-service technology....
9 Pages (2250 words) Essay

Non- cash payment

I am saddened by the statistics because the fraud says that my money is not safe in the ATM, bank or in the form of a Degree of risk When Using Cards and Cheque to Make Payments Degree of risk When Using Cards and Cheque to Make PaymentsI am a technology enthusiast and without a doubt, it enhances efficiency.... The degree of risk is lesser with the preventive measures put in place.... Technology has penetrated in the payment industry....
2 Pages (500 words) Assignment

Economic Meltdown and Accounting Practices

This need is further fueled by the increasing number of global scandals involving corporations, involving data manipulation and fraud.... Global accounting standards such as IFRS (international Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles) are aimed at removing any problems arising from the increase in data size.... both IFRS and GAAP aim to make financial reporting more international.... When on an international level every corporation uses the same rules and regulations to explain data it becomes easy to comprehend and review....
11 Pages (2750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us