Solution architecture for detecting and preventing fraud in real time

Fraud has been an issue since the very beginnings of commerce. Today, as business moved into the online era, this topic has become a major issue in e-commerce. In this paper, we introduce a solution architecture for detection and preventing fraud in real time by using an event-based system called SARI (sense and respond infrastructure). We present the architecture and components for a real-time fraud management solution which can be easily adapted to the business needs of domain experts and business users. The SARI system provides functions to monitor customer behavior as well as it can steer and optimize customer processes in real time. For illustrating our approach, we show fraud scenarios of an online gambling service provider.

1. Introduction

Since the very beginning of commerce people intentionally exploited, abused or misused organizational resources for their personal and financial benefits. As business evolved, became computerized, more complex and stepped into the internet era, fraud has become a very large concern for especially e-businesses, financial service providers, network operators or the emerging online gambling industry. Fraudsters are capable of making use of the same type of technologies that drive and build the businesses. Identity theft, credit card fraud and money laundering are just a few picks from the list of possible fraud cases. In most cases fraud is noticed very late, if they are noticed at all. Usually this is too late and has already caused severe damage.