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Ebook Adaptive Fraud Detection
In the United States, cellular fraud costs the telecommunications industry hundreds of millions of dollars per year (Walters and Wilkinson 1994; Steward 1997). One kind of cellular fraud called cloning is particularly expensive and epidemic in major cities throughout the United States. Cloning fraud causes great inconvenience to customers and great expense to cellular service providers. Existing methods for detecting cloning fraud are ad hoc and their evaluation is virtually nonexistent. We have embarked on a program of systematic analysis of cellular call data for the purpose of designing and evaluating methods for detecting fraudulent behavior. Cloning fraud is one instance of superimposition fraud, in which fraudulent usage is superimposed upon (added to) the legitimate usage of an account. Other examples are credit card fraud, calling card fraud and some forms of computer intrusion. Superimposition fraud typically occurs when a non-legitimate user gains illicit access to the account or service of a legit
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