Archive for March, 2011

Every BDM rule alert stops $32 additional debit card fraud

Sunday, March 13th, 2011

Based on the actual debit card fraud detected by BDM rules since June of 2010, every alert generated by BDM rules stops $32 fraud. The following are some facts about the BDM rules. (BDM stands for Business Data Miners.)

1. $32 is the total dollar amount of debit card fraudulent transaction actually stopped by blocking cards divided by the total number of alerts generated by BDM rules.

2. $32 does not include fraud transactions detected by existing non-BDM rules. For example, if both existing non-BDM and BDM rules alert on the same card and an analyst  blocks it, the fraud loss prevented is excluded from $32.

3. The total additional fraudulent transaction amount prevented due to BDM rules is multiple million dollars annually.

4. There is no increase in operation cost at all. This is because: a. the volume of alerts generated by BDM rules is less than 10% of total number of alerts; b. we helped the client identify ineffective rules and retire them.

5. BDM rules are not only statistically accurate but also understandable. For example, we have BDM rules targeting on risky retailers, risky MCC and risky cities.

6. BDM rules are written in standard SQL statements that can be deployed  in many fraud prevention products.

7. BDM rules are refreshed monthly based on latest transactions and fraud information.

In fraud prevention analysts’ own words, “these BDM rules are amazing”.