Detection tool aims to stop fraud

Australian online mortgage provider Fusion Operating Solutions is the first company in Australia to utilize a new fraud protection service introduced to the local market last month.

Claiming mortgage fraud accounts for some 12.9 percent of all financial losses in Australia, Golden Mean's Anti Fraud Service is based on analytics software from Salford Systems which assesses transactions and applys a score rating.

Alvin Justus, Fusion's head of operations, said there has been an explosion in mortgage financing which opens up opportunities to exploit gaps in compliance processes and existing rules-based anti-fraud systems.

Golden Mean managing director Greg Stevens claims the detection tools are a breakthrough.

"This is the first time anywhere in the world that data mining technology incorporating both behavioural analysis of mortgage application data and business rules are being used simultaneously to identify and combat fraud; this is a key aspect of our Virtual Fraud Organization architecture," he said.

"Most common systems simply apply a business rules test to mortgage applications and these applications pass or fail depending on the data contained within them."

Fusion's service scans data using an analytics engine and simultaneously applys the anti-fraud rules.

The analytics scan the data, predicts its potential behaviour and then applies a fraud score to each application.

Join the newsletter!

Error: Please check your email address.
Show Comments

Market Place