Sportmaster (Big Data Projects)

2020: Using Big Data and Machine Learning to Combat External and Internal Fraud

The sports store chain Sportmaster and the analytical company Marketing Logic have completed a pilot project on the use of Big Data and machine training to combat external and internal fraud. During the project to identify fraudulent transactions and monitor compliance with technology, the joint team of Sportmaster and Marketing Logic focused on sales and merchandise transactions, as well as the accompanying document flow.

As a result of hidden and undisclosed losses, large retail chains can lose up to 3% or more of their turnover. The damage from fraud can be as obvious - in the form of overstatement of discounts due to the use of bonus and discount cards, fraud with returns, the sale of expensive goods under the guise of cheap, "virtual" provision of services, and indirect - in the form of overstatement of personal sales or worked time, concealing shortfalls, holding goods until the discount period, as well as in the form of many other more or less common options for deceiving the company. Separately, there are cases related to compliance with service technologies, internal regulations and the reflection of operations in systems that do not cause direct damage, but significantly increase the burden on the back office.

"Frode is a very large and complex sphere. Large corporations lose or do not receive up to 5-7% of their turnover. Our specialty - working with data, analytics and modeling - allows you to effectively identify dubious and criminal schemes, "said Dmitry Galkin, managing partner of Marketing Logic, about the specifics of the Antifrod direction.

The customized system of processing and analytics of all business processes related to the movement and sale of goods allows you to identify tens of thousands of cases of abuse or abuse of power, violations of instructions and other types, including external frode, which, after final implementation, allows large businesses to save up to 100 million rubles a year.

Antifrode is not just useful for companies, it is necessary when moving from the midsize to the large segment and when setting up and optimizing business processes, and opens up opportunities to prevent losses, save working capital of the company and increase profits.