Fraud analytics is one of the most important application fields of analytics in the financial domain. In the insurance domain, genuine claims from “over-inflated” fraudulent claims can be separated by means of fraud analytics. It can also help in geospatial analysis to weed out claims that are filed from areas that are not located in the impacted zone.
Rule-based logic along with intelligent machine learning tools such as clustering can be used to find more fraud cases that are similar to known cases. This use case will help in determining Mitigate Frauds, Loss reduction, etc.