Machine learning is crucial for fraud management

Lately there seems to be a surge in the term machine learning. Much like big data a few years ago, machine learning is the new buzzword -- and the two terms actually go hand in hand. With increasing volumes of data now stored in distributed environments such as Hadoop, it's possible to quickly produce models that can analyze bigger, more complex data, and deliver faster and more accurate results – two critical elements in the battle against fraud. The more time it takes to discover an instance of fraud, the more the victim organization loses. Association of Certified Fraud Examiners (ACFE) estimates fraud costs organizations 5 percent of annual revenues worldwide.