How Data Mining Can Help in Crime And Fraud Detection

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 How Data Mining Can Help in Crime And Fraud Detection

As crime rates keep spiralling each day, new challenges are faced by law enforcement

agencies. They have to keep their forces on the lookout for any signs of criminal activity. This

may only cause more burden on their resources. The law enforcement agencies should therefore

be able to predict such increases or decreases or trends in crime, such as the approximate number

of murders, rapes, thefts, or any such crimes that may occur in a particular area for a specific

month, year, or any timespan, or, the overall number of crimes occurring in a country within a

particular year in the future, or any other prediction or projection of future crime statistics. Data

mining is a way to extract knowledge from usually large data sets; in other words, it is an

approach to discovering hidden relationships among data using artificial intelligence methods. In

this paper, we will be discussing how data mining has helped in crime and fraud detection and

the solutions that can help fight crime. (Phua,et al,. 2010).

First, data mining proposes to extract data from crime record repositories, on which we

intend to perform data mining. Data classification and regression algorithms then help in

forecasting and predicting. This is proposed by first training a set and then applying the learned

rules on the test set to determine the expected output. Using this, law enforcement agencies can

better understand how the crime pattern across a specific region or interval of time is, and using

this data. Such agencies can take proactive action to stem the rise of particular crimes in

particular areas or during specific times. This would save them a lot of time, money and effort.

Fraud Detection

As per the Association of Certified Fraud Examiners "misrepresentation incorporates any

purposeful or intentional act to deny another of cash or property by trickiness, misleading, or

other unjustifiable methods." The money related inspiration to forestall extortion leads to more

modern techniques to identify misrepresentation utilizing DM (data mining) and AI. The author

expects to add to medical coverage extortion discovery in their observational investigation.

Analysts limited the strategies for clinical misrepresentation to copying charging, abusing

charging codes, giving costly tests (upcoding), and indicting for administrations that are not

provided while presenting the case to it (unbundling). Because of the clear idea of copying bills

and abusing the codes, the scientists concentrated on unbundling and upcoding. To discover fake

cases, the specialists recommended a strategy for finding oddities inside the current information

by employing measurable decision standards and k-implies bunching. The scientists showed that

the cycle of extortion recognition could be profoundly improved by hailing anomalies, regardless

of the length of remain for a particular infection, instalment, or speed of guarantee endorsement.

Methods of Data Mining That Can Help Reduce Crime and Fraud

Prediction. Predictions calculate statistical and requested future qualities dependent on the

examples of an informational index. The characteristic for which the grades are expected is

stably esteemed (requested) instead of clear cut (discrete-esteemed and unordered). This can be

alluded to just as the anticipated property. Neural systems and strategic model expectations are

the most regularly utilized forecast methods.

Outlier Detection. Anomaly identification is exploited to quantify the "separation" "

among information items to differentiate such papers that are not similar or contradictory to the

remainder of the informational collection.

"Information that seems to have unexpected attributes compared to the remainder of the populace

are called anomalies". The exception/irregularity discovery issue is one of the most outstanding
critical issues in data mining. A regularly utilized method in exception discovery is the limiting

learning calculation.

Regression is a measurable technique used to uncover the connection between at least

one free factor and a needy variable (ceaselessly esteemed). Numerous experimental

investigations have utilized strategic regression as a benchmark. The regression procedure is

regularly attempted using such numerical techniques as calculated regression and direct

regression. It is being used in charge cards, harvest and collision protection, and corporate

misrepresentation.

Visualization. Representation alludes to the efficiently justified initiation of information

and a methodology that alters over confused information qualities into clear examples to permit

clients to see the unpredictable examples of connections revealed in the data mining measure.

Representation is best used to convey complex models away from information or capacities.

Undoubtedly, humans' social life circumstances make it vital to encounter a phenomenon known

as crime. So we always need the knowledge of crime analysis as an efficient combating tool.

In conclusion, crime analysis includes leveraging a systematic approach for identifying,

discovering, and predicting crime incidents. The input of a crime analysis system consists of data

and information assigned to crime variables. The output includes the answer to investigative and

analytical questions, knowledge extraction and finally, hidden. Maybe intangible relations

between them have made data mining a rapidly growing field among criminologists, crime

investigators and crime analysts. Large volumes of crime-related data existed in police

departments. The complexity of relationships between these kinds of data has forced the

traditional crime analysis methods to become obsolete. These methods require a considerable

amount of time and human resources.

 Refferences

Phua, C., Lee, V., Smith, K., & Gayler, R. (2010). A comprehensive survey of data

mining-based fraud detection research. arXiv preprint arXiv:1009.6119.

Shukla, N., & Pandey, S. (2012). Document Fraud Detection with the help of Data

Mining and Secure Substitution Method with Frequency Analysis. International Journal of

Advanced Computer Research, 2(2), 149.