Business data is being managed and stored by IT systems in any and every web development company in india. Therefore companies rely more on IT systems to support business processes. To detect and prevent hazardous frauds, these companies will need automated controls. Let’s look into the importance of Data Analytics and Machine learning for the same prevention.
About Data Analytics
The use of data analytics helps one’s organization harness their data and make use of it to identify new emerging opportunities. These opportunities, in turn, leads to smarter business moves, more efficient operations, higher profits and happier customers. The use of Data Analytics help give you value in the following ways:
1. Cost reduction
– With the use of Big data technologies like Hadoop and cloud-based analytics bring in significant cost advantages when it comes to storing large amounts of data. It can also help in identifying more efficient ways of doing business.
2. Better and faster decision making
– With the speed of emerging technologies and in-memory analytics, comparing with the ability to analyze new sources of data, businesses nowadays are able to analyze information immediately. This helps in making decisions based on what they have learned about.
3. New products and services.
– With the ability to gauge customer needs and satisfaction with the help of analytics comes the power to give customers what they are in want of. We see companies using this tactic to create new products, in order to meet customer’s needs.
How does it make your way easy?
– Data analytics acquire various tools that can be deployed in order to parse data and derive valuable insights out of it. The data-handling and computational challenges that come across at scale mean that the tools need to be specifically able to work with such kinds of data. The advent of big data changed analytics forever, all because of the inability of the traditional data handling tools like relational database management systems to work with big data in its varied forms. Big data drastically started changing requirements for extracting meaning from business data.
What are its way of working?
You won’t find any technology that encompasses big data analytics. There are for sure advanced analytics that can be applied to big data, but in actual talking, there are several types of technology that work perfectly fine together to help you get the most value from your information. Given below are a few of those same players
– Data Management
Your data is to be your uttermost priority and needs to be well-governed before it can be analyzed. With the help of data constantly flowing in and out of an organization. It proves to be important to get a repeatable process to build and maintain the standard for data quality
– Data Mining
This technology helps you examine large amounts of data to discover patterns in the data and the same information can further be used for analysis to answer the complex business question.
– Hadoop
The open source software framework can easily store large amounts of data and run successful applications on clusters of commodity hardware. It has now become a key technology in doing business.
– In-memory analytics
You can easily derive immediate insights from your data and act on them pretty quick. This technology is able to remove the needed data prep and analytical processing latencies to test new projects and create successful models.
– Predictive analytics
It uses data, statistical algorithms and machine-learning techniques to identify the likelihood of future outcomes based on historical data. It is all about providing the best assessment that will happen in the future.
– Text mining.
You can analyze text data from the web, common fields, books and other different text-based sources to uncover insights you have not noticed before. Text mining makes use of machine learning or natural language processing technology to go through the needed documents.
Data Analytics process for fraud detection
– Create your profile that includes all the needed areas where fraud is expected to happen and the different possible types of fraud in those same areas
– Measure the risk of fraud and the overall exposure to one’s organization. Prioritize your risk.
– Follow Ad-hoc testing method to find for indicators of fraud in particular areas.
– Establish a risk assessment and decide where you need to pay closer attention.
– Monitor your activity and have clear communication throughout the organization.
– Inform the management once found any sort of fraud.
– Fix any broken controls
– Segregation of duties
– Expand the scope of the program and repeat the process.
About Machine Learning
An application of artificial intelligence (AI) that provides with system ability to automatically learn and improve from experience without being explicitly programmed. It has all its focus on the development of computer programs that can easily access data and use the same to learn for the future. The process of learning begins with observations or with data like direct experience, instruction. In order to look for patterns in data and make appropriate decisions.
The machine learning methods or algorithms are categorized as supervised or unsupervised.
1. Supervised machine learning algorithms apply to things that have been learned in the past to new data using labelled examples to predict the needed future events.
2. Unsupervised machine learning algorithms are used when the information used to train is not classified either is it labelled. These studies the systems that can infer a function to describe a hidden structure from unlabeled data.
3. Semi-supervised machine learning algorithms fall somewhere in between supervised and unsupervised learning since they use both labelled and unlabeled data for their training purposes.
4. Reinforcement machine learning algorithms is a learning method that interacts with its environment by producing actions and discovers errors or rewards.
Machine learning for fraud detection.
1. For fraud decisions, you as a customer will need results super fast. Research shows that the longer a buyer’s journey takes the less likely they are to complete checkout. Machine Learning. is like having several used teams of analysts running thousands of queries and comparing the outcomes to get the best results.
2. An online business would want to increase transaction volume. With the help of certain rules, increasing amounts of payment and customer data give more pressure on the rules library to expand.
3. Machine Learning does all sort of dirty work of data analysis in a fraction of the time. During that time it can easily take for even 100 fraud analysts. Unlike a human, machines can easily perform repetitive, tedious tasks 24/7.
Frauds will increase as the transaction volume of your business increases. Technology advancement is a plus as well as a minus to any company that strives to be one of the Best Web Development Company, and Web Developers in India work hard on detecting and solving such attacks. Analytics to detect certain fraud can help in playing an important role in identifying fraud in certain stages and protecting your business from heavy loss.
