Business intelligence software provider SAS Institute has added a new offering to its portfolio of warranty analysis tools, an on-demand application called Suspect Claims Detection.
The software aims to improve on manufacturers’ methods of weeding out fraudulent warranty claims by adding an advanced analytics engine to the mix. The Suspect Claims Detection software applies a hybrid approach to the process, employing traditional business rules in conjunction with anomaly detection, advanced analytics, and social network analysis, said Dave Froning, product manager for warranty solutions at SAS. The software may detect, for instance, that the text description on a warranty form doesn’t match the part used for the repair. The Suspect Claims Detection tool also reviews the social connections of a claimant, and may discover that a service worker was fired from another company for fraud-related activity.
The SaaS software uses SAS’ Fraud Framework, a series of models that are used to detect welfare fraud, banking fraud, and other illicit activities. The system scores claims as a manufacturer receives them, giving the warranty department intelligence up front, which Froning calls a best practice.
“Whenever possible, score the claims before they’re paid. It’s a lot easier to stop payment on a claim than it is to try to chargeback after the fact.”