THE ECONOMICS BEHIND THE IMPLEMENTATION OF THE FRAUD DETECTION SYSTEM
The economics behind fraud detection
and resolution is straightforward; the objective is to reduce losses
incurred to the company by fraud. One option is to do it »manually« -
the company carefully checks a certain number of randomly chosen claims
on a monthly basis. However, the company is much more successful if it
deploys software solutions in order to detect fraud. The computer
system automatically checks all claims, thus the company is much more
successful in fraud detection. In addition, the Admiral system improves
the efficiency of the company, because the system guides the supervisor
and thereby facilitates the work process. The savings then depend on
the success of fraud detection and the efficiency of fraud resolution.