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The Fraud Management solution is based on scoring model. For example, assume the scores range from 1 to 10, with 10 being the highest probability that the transaction is fraudulent. What cutoff score would you use to decide to approve a purchase? What cutoff score would you use to decide not to aporve a purchase? If those cutoff sores are not the same,how do you suggest those falling between socres be treated.
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Analyze reasons to invest millions of dollars to detect and prevent fraudulent transactions. In your evaluation, do a cost benefit analysis to show why the investment cost is worthwhile.
Review the two outcomes of the fraud scenario. Assess the business implications of each of the following two goals. Explain why these goals are conflicting.
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