Federal detection of fraud and financial crime

Eurodat_UseCaseAbstract_2

Problem description

Money laundering is estimated to account for two to five per cent of global GDP (1.7 to 4 trillion euros). Banks have a central role to play in combating money laundering. However, since fraudsters operate in networks, money laundering transactions usually look unsuspicious from the perspective of individual financial institutions. As a result, they often remain undetected, while at the same time banks incur significant costs due to a high false positive rate of suspected fraud alerts.

Insurance companies also lose large sums of money every year due to fraud.

Solution

Building on EuroDaT, Eviden is developing a federated ecosystem to combat fraud and financial crime. It will enable increased transparency of money and value flows across different banks.

The concept: Banks provide encrypted transaction data to the neutral data trustee EuroDaT. EuroDaT enables the encapsulated execution of fraud detection algorithms developed by Eviden on the data of several banks. This results in a significantly improved detection of fraud patterns and a reduced false positive rate at banks, e.g. with the help of graph technology and artificial intelligence.

In addition, the ecosystem will offer insurance companies the functionality to detect duplicate usage of claims documents in real time.

EUD_Fraud_detection_en_eviden

Use Case Lead

Eviden Germany GmbH

Involved Partners

d-fine, ZEVEDI, DFKI, Saarland University, T-Systems, Hessian Ministry of Economics, Energy, Transport and Housing. Associated: Deutsche Bank, Deutsche Börse, ING Group