2018 BAI Global Innovation Award Finalist

BAI Global Innovation Awards 2018 finalist DenizBank


Internal Process Innovation

DenizBank – Turkey
Internal Fraud Defense

At the threshold of the digital era, customer numbers, transaction volume and service channels increase, and cyber gangs target employees for unauthorized and malicious purposes. As a result, internal fraud has become an issue of big data management.

As a solution to these challenges Intertech, the IT subsidiary of Denizbank, developed Business Analytics Driven Internal Fraud Defense, which goes far beyond fraud detection and turns a complex big data issue into an advantage using artificial intelligence and  a self-learning algorithm. This intelligent fraud tool focuses on:

–     Detection and prevention of internal fraud
–     Preventing losses and protecting bank reputation
–     Decreasing control lists, detection of new types of fraud faster with a self-learning algorithm
–     Minimizing fraud detection duration
–     Defining/updating rules without IT development
–     Ensuring efficiency with a user friendly structure

Business Analytics Driven Internal Fraud Defense is a predictive application with a new and unique approach. With artificial intelligence and a self-learning and online algorithm, data derived from different sources are combined and fraud scores are produced automatically. As a result, the number of false-positive results decreases and fraud detection becomes easier. With a complex structure behind it, the tool has a user-friendly interface that enables greater efficiency.

DenizBank Internal Fraud Defense team photo

The Problem

According to the most comprehensive study about fraud conducted by Association of Certified Fraud Examiners, the typical organization loses 5 percent of revenues each year to fraud. If applied to the estimated Gross World Product, this translates to a potential projected global fraud loss of nearly $3.7 trillion.

This fact impels the organizations to take action against fraud. The longer fraud lasts, the more financial damage it causes. Passive detection methods (such as confession, notification by law enforcement etc.) are ineffective and cause high amount of loss.

The Solution

For the reason above, DenizBank developed a pro-active tool that not only detects, but also prevents fraud.

Business Analytics Driven Internal Fraud Defence focuses on internal fraud cases. The tool aims at Fraud Detection, Investigation and Fraud Deterrence. Parametric structure, business analytics and investigation tools support the tool. These features enable the bank to prevent and identify fraud cases in an effective and timely manner.

The Outcome

With the Business Analytics Driven Internal Fraud Defence Tool, DenizBank saw a 90 percent decrease in money loss…

  • 38 percent improvement at false positive results (354 high risk decreased to 220 high risk)
  • 78 percent more efficient scenario composition (9 hours to 2 hours)
  • 70 percent more efficient investigation (10 min. to 3 min.)
  • 90 percent more efficient sampling process (1 hour to 6 min.)