BU333_FINAL_CARLYLE_CONNER.docx - Carlyle Conner 1 Emily Carlyle Maralina Conner Professor Pahls BU 333 How Does Data Mining Help Organizations Identify

BU333_FINAL_CARLYLE_CONNER.docx - Carlyle Conner 1 Emily...

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Carlyle, Conner 1 Emily Carlyle, Maralina Conner Professor Pahls BU 333 November 02, 2019 How Does Data Mining Help Organizations Identify and Prevent Fraud? The objective of this research is to review current knowledge from recent academic and industrial research of data mining techniques for fraud detection and prevention. Data mining is also a technology that is used to assist in the extraction of details from large databases. It is of use to organizations that want to process data sets that are specific to their business operations in data warehouses. Tools are utilized in data mining assist an organization in forecasting fraud, future trends while providing accurate information used to make crucial decisions that affect the daily operations of the organization. Data mining tools are also utilized on systems that have software and hardware that are high-performing; this is so organizations can deliver solutions in a prompt manner. A fundamental thing about data mining tools is their ability to be integrated with an informational structure that already exists. Data mining is known or referred to as knowledge discovery, and its goal is to make available actionable information that cannot be found using other means. Such information is crucial as it can improve business functionality and even give a competitive business edge. Ultimately data mining is the process of finding a pattern in an extensive existing database using Artificial Intelligence, Statistics Modeling, and Machine Learning with the purpose of extracting the information from comprehensive data set and use this information of further use. Fraud is clearly defined as an act of using deceit, such as the concealment of facts, to gain an unfair advantage over another and thus secure something of value or deprive another of a right. In legal terms, fraud is defined as a generic category of criminal conduct which involves using
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Carlyle, Conner 2 “dishonest or deceitful means to obtain some unjust advantage or gain over another party.” Fraud is overwhelmingly considered to be one of the besetting evils of our time. Even though it is considered less dramatic than crimes of violence like murder or rape, fraud can cause a significant amount of damage to an individual or organizational level. Usually, fraud is viewed as a victimless crime and does not draw a lot of community and political reactions in comparison with other crimes. However, many now believe that fraud can be as severe as or even more severe than certain types of street crimes. While data mining is still not widely used in today's world, companies in industries such as retail, health care, and finance, are utilizing several data mining tools that allow them to use historical data in making important decisions and solving business problems (Alexander, 2019). Data mining tools ultimately enable organizations to use pattern recognition, mathematical, and statistical techniques to recognize significant relationships, facts, exceptions, trends, anomalies, and patterns that are difficult to notice without the use of data mining tools.
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