Neural nets and advanced data analysis techniques are being used for all of these. Follow- on projects will involve the entire financial services industry. Credit-Card Fraud Detection A MasterCard Funded Project MasterCard International and Los Alamos National Laboratory are working together to develop an unprecedented, sophisticated computer model to predict fraud. Los Alamos and MasterCard will create the model based on evaluation of more than 30 different modeling techniques that Los Alamos has developed over the past five years. MasterCard member financial institutions worldwide have used standard neural net- work technology successfully in recent years to predict and spot potential fraud, based on transaction irregularities and predetermined parameters.
Neural networks help members identify fraud in real time and on a delayed basis.
Deliverables for this project will consist of modules of software developed from algo- rithms and methods constructed by the Laboratory to detect patterns of fraud. The soft- ware deliverables will evolve based on feedback from the IRS tax examiners and refinement of the algorithms and methods. This project will examine the claims processing systems employed by HCFA contractors and the enormous Medicare datasets to develop profiles of fraud and abuse and develop new algorithms for detecting fraud and abuse as early as possible in the claims process.