The Methodology of Risk Decreasing and Fraud Operations Avoiding with Essay

The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems - Essay Example As the discussion stresses the great quantity of these methods gives us an opportunity to choose the most suitable for each specific task, for each kind of database. This paper declares that 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 detectin g them mechanically, we’ll miss more refined and, surely, more detrimental for a bank. 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.