When proposed new fraud detection systems are tested in revolving credit operations, a straightforward comparison of the observed fraud detection rates is subject to a selectivity bias that tends to favour the existing system. This bias arises from the fact that accounts are terminated when the...

Technological advances mean that vast data sets are increasingly common. Such data sets provide us with unparallelled opportunities for modelling and predicting the likely outcome of future events. However, such data sets may also bring with them new challenges and difficulties. An awareness of...