What is a Rule Base
What is a rule base? A rule base is simply a set of conditions that trigger an action. In the case of fraudulent bookings you are looking for triggers that suggest the bookings may be fraudulent. In basic terms a rule base could be that if a product above a certain value is being purchased additional security checks are required.
Primarily rule bases will cover the type of product or service being purchased and the data given by the consumer, but may also include the behaviour of the user, seasonal patterns and supplier relationships.
To be in the best position to create a rule base analysis needs to take place on past occurrences of fraud. Once rules are in place a regular review of how each rule is performing is required. Depending on the product range of your business the rules in place can be limited to single figures but if your business has many different strands the rules applied can run into the hundreds.
Rule bases can be applied both manually and via an automated systems so don`t presume you have to purchase an expensive system to have a rule base. In a call centre environment having a set of 5 or 6 rules in more than enough to drastically reduce the threat of fraud.
The action a rule triggers is up to you and in most cases a selection of rules would need to be triggered before an action takes places. In an online environment the obvious action is to reject a booking if various rules are triggered, the booking may also be placed on hold pending manual review.
If you are obtaining a rule base from a third party remember it is not the case the one rule base fits all. Even if the rule base has been developed for a company in the same sector as you will still need to make amendments as rules will need to cater for the different supplier relationships you have as well as the different business systems in place.
Small or large it is important for all businesses to ensure they have an appropriate rule base in place for the threat they face, however simple the rule base all businesses will benefit from having one in place.