Now, that we have established a bit of background information as to the definition of the various types of banking fraud, we can begin this chapter's projects, starting with a review of the data we'll be working with.
The project in this chapter is focused on identifying fraudulent transactions.
Our data will be a file of transactions that have been made at a particular bank over a period of time. Since the type of fraud we are interested in involves comparing transactions to a normal amount (of the transaction or activity), as part of the project, we will need to understand what the cash baseline should be.
In the past, the Currency and Foreign Transactions Reporting Act (established in 1970) introduced the requirement that banks need to report all suspicious currency transactions. The intent of this requirement was to prevent tax evasion and money...
