Data mining inproves fraud mitigation efforts

Sometimes, fraud is obvious. Dennis Parker, insurance industry marketing manager at SPSS, a Chicago-based predictive analytics provider, remembers back to 1992 when he first started in the insurance business in the special investigations unit (SIU) of a large, nonstandard carrier. He describes seeing instances of what he calls "no duh" fraud, in which the indicators were so obvious that even the least-experienced claims professional or SIU team member should have been able to identify the claim as suspect -- such as when two obviously related individuals were involved in an auto accident with one another.