Two weeks ago, we launched a 20 tips campaign – a tip a day over four weeks – that introduces real-life scenarios of customers using predictive analytics to overcome business challenges. Each week focuses on a different topic. Week one looked at predictive and customer relationship management. Week two examined how predictive analytics can help boost your marketing. This week explores how predictive analytics can help you anticipate risks and reduce fraud.
When crafting your company strategy, you often need to balance new business opportunities and their associated risks. The ability to spot risks before they happen allows you to define and execute on your strategy without jeopardizing your future.
- Fraud is a big problem for many businesses and comes in many forms, such as:
- Inaccurate credit applications
- Fraudulent transactions Identity thefts
- False insurance claims
A company’s size and industry are irrelevant. All organizations are at risk, from credit card issuers and retail merchants to insurance companies and manufacturers to suppliers and service providers.
That’s why fraud is one of the most established uses of predictive analytics. It can help you sort out the delinquents and reduce your exposure. Without it, fraud is often detected after it’s already happened—when it’s too late to mitigate the risk. With the latest technologies, you can detect fraud in real time, while it’s happening.
If reducing the risk of fraud in your organization is of interest to you, make sure to follow #SAP20Tips and @SAPAnalytics over the coming week for daily tips posted to STAY AHEAD: 20 Tips from SAP Predictive Analytics on SAP.com, including real-life customer stories! And watch the video below to see SAP Fraud Management in action:
Week 3 – Originally published on the Analytics blog and republished with permission.