Two and half years later after winning Frost & Sullivan North American Technology Innovation of the Year Award in the field of Enterprise Fraud Detection and Prevention technologies SAS Institute has won approval for "Computer-Implemented Predictive Model Generation Systems and Methods" (US patent 7,788,195 B1), which is at the heart of SAS® Fraud Management, an integral component of the SAS Enterprise Financial Crimes Framework for Banking.
Let’s just note that a Frost & Sullivan criterion is based on following:
Significance of the innovation(s) in the industry, and across industries (if applicable)
Potential of the products of innovation(s) to become industry standard(s)
Competitive advantage of innovation vis-à-vis other related innovations
Impact (or potential impact) of innovation(s) on company or industry mind share
So, it seems that by patenting their award winning product SAS Institute is fairly confident that they will make impact toward further improvements and successes in fraud detection arena.
SAS Fraud Management employs a "Self-Organizing Neural Network Arboretum" (SONNA) modeling capability to build its unique hybrid approach to consortium and custom models. This capability offers significant improvement in fraud detection performance compared to the performance of regular, non-linear modeling techniques like neural networks. Capability is based of computing signature of card-holder over the period of time and then matching specific transaction to the overall blueprint, and allocating specific score that transaction is fraudulent.
SAS Fraud Solution provides the creation of risk-based reason factor groups, giving an organization's fraud operations and analytics groups more insight and context to the risks and reasons behind the model score - optimizing responses and automating actions to a high-scoring transaction.
In words of Revathi Subramanian, primary patent inventor and Research and Development Director in the SAS Fraud Modeling Department "Banks will be able to better protect themselves and their customers against fraudsters using these advanced techniques. This patent is a demonstration of SAS' continued commitment to innovation and reinvestment that makes it one of the foremost business analytics companies in the world."
SAS has developed consortium models for Asia Pacific, Mexico, the United Kingdom and the United States, but the models can also be used in other non-listed regions to drive immediate return on investment.
"SAS feels that customized predictive models are the best way to maximize ROI from a fraud solution," said Ellen Joyner, Global Marketing Manager, Financial Crimes Prevention at SAS. "We understand that all clients may not have the data history of known fraudsters and their behavior to customize predictive models or the requirement for a customized approach.
SAS has developed regional models based upon consortium data that helps SAS to readily deploy ‘out of the box' analytics across multiple product and channel portfolios."