Fraud prediction; a challenge for machine learning algorithms

Fraud is a billion-dollar business and expands rapidly year by year. Thousands of people fall victim to it. Fraud always includes a false statement, misinterpretation, or deceitful conduct. Common varieties of fraud offenses include identity theft, insurance fraud, credit/debit card fraud, and mail fraud. The PwC global economic crime survey of 2018 (PwC, 2018) found that about half of the 7,200 surveyed enterprises had already experienced fraud of some kind. This is an increase compared to the PwC survey conducted in 2016 (PwC, 2016), in which slightly more than a third of organizations surveyed had experienced economic crime.