# Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-12-30
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: How Graph Technology is Transforming Fraud Detection in
Meta Description: Discover how Allianz, a global financial services giant, leverages graph technology to combat fraud and protect customers from sophisticated schemes.
URL: https://financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experiencehtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-businessman-holding-five-star-ratinghuooq2wgol-scaled-1736838652131-compressed.jpg)

_Data expert Amy Hodler examines how one of the world’s largest financial services companies has successfully employed graph technology to fight fraud and better understand customer behaviour_

Fraud is a growing concern in the financial services sector as criminals use increasingly sophisticated techniques that make it difficult to identify fraudulent activity at scale, and take fast, decisive action.

As financial fraud’s scope and size grow to include digital and mobile platforms, it is increasingly challenging for financial services institutions to stay ahead of criminals. As a result, fraud prevention and detection are at the [top of the boardroom agenda](https://www.financedigest.com/why-cybersecurity-needs-to-be-top-of-the-agenda-for-fs-organisations.html "Why cybersecurity needs to be top of the agenda for FS organisations"). The problem is traditional methods of monitoring fraud are not strong enough to [fight](https://www.financedigest.com/how-speech-recognition-and-ai-are-fighting-fraud-in-financial-services.html "How speech recognition and AI are fighting fraud in financial services ") fraud. This is because fraudulent patterns are becoming increasingly complex.

The technique of setting up rules to examine deviations from standard purchasing patterns, using discrete data, for example, may work in catching lone wolves. It is not, however, an adequate tool to hunt down fraud rings. These organised groups use [synthetic or manufactured](https://www.financedigest.com/synthetic-quartz-market-sales-is-driven-by-increasing-growth-in-manufacturing-and-construction-sectors.html "Synthetic Quartz Market Sales Is Driven By Increasing Growth In Manufacturing And Construction Sectors") identities, which are often stolen. These malevolent actors are also capable of hijacking mobile devices unknown to their owners.

Complicated fraud schemes [demand an advanced way of following the chain that links one account](https://www.financedigest.com/fingerprint-scanners-to-remain-top-selling-accounting-for-over-one-third-of-access-control-demand-in-2021-future-market-insights.html "Fingerprint Scanners to Remain Top-selling, Accounting for Over One-third of Access Control Demand in 2021: Future Market Insights") to another. The secret is in spotting how activities, which at first may appear totally unrelated, are actually connected. This necessitates a 360-degree view of the intricate network fraud rings are made up of. It allows financial institutions to pinpoint suspicious events that may be linked with a high degree of accuracy.

Graph database [technology](https://www.financedigest.com/how-advanced-self-service-technologies-are-changing-the-face-of-finance.html "How Advanced Self-Service Technologies are Changing the Face of Finance") may be the ultimate weapon in the war against financial fraud.

**_Fraud detection architecture using graph technology_**

Graph databases are capable of uncovering relationship patterns that are difficult to detect with traditional relational databases. For this reason, a growing number of the [world’s leading](https://www.financedigest.com/arora-project-have-experienced-out-of-this-world-returns-with-their-lead-generation.html "Arora Project have experienced out-of-this-world returns with their lead generation") financial institutions are adopting graph technology. Graph technology is being used to model and monitor data about customers, accounts, devices, locations and so on in a bid to identify fraudulent activity and take proactive action. Allianz, a multinational financial services company offering [insurance products and services to 100 million customers](https://www.financedigest.com/insurers-ready-to-fight-back-against-poor-customer-experience.html "Insurers ready to fight back against poor customer experience") in more than 70 countries, is one such company.

The company takes a zero-tolerance stance on fraud, which is a [problem both in underwriting and when a customer](https://www.financedigest.com/the-problem-with-measuring-customer-loyalty-and-how-to-overcome-it.html "The problem with measuring customer loyalty; and how to overcome it") makes a false claim on their policy.

**_Relational data model headaches_**

Allianz recognised the best way to understand any possible fraudulent activity is by storing, analysing and visualising [claims cases through connected data](https://www.financedigest.com/frances-thales-says-hackers-claim-to-have-stolen-data.html "France’s Thales says hackers claim to have stolen data").

![Amy holder](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/amyhodler-450x565-1736838652204-compressed.png)

Amy holder

“Graph technology does this at scale, which [means we no longer](https://www.financedigest.com/why-fundraising-no-longer-means-kissing-a-lot-of-frogs.html "Why fundraising no longer means kissing a lot of frogs") have to rely only on highly demanding, traditional relational technologies,” explains Dr. Jan Doumen, strategic [lead for Customer & Broker Information and Insights](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights") at Allianz.

The [company had historically found it challenging to build](https://www.financedigest.com/the-logo-of-french-cloud-computing-company-ovhcloud-is-seen-on-a-data-center-building-in-strasbourg-france-october-13-2021-reuters-christian-hartmann.html "The logo of French cloud computing company OVHcloud is seen on a data-center building in Strasbourg, France, October 13, 2021. REUTERS/Christian Hartmann") internal visualisations of suspicious behaviours using relational technology. The [approach was also not able to equip the Allianz Benelux team with useful data as and when it was needed](https://www.financedigest.com/why-businesses-need-to-shift-their-e-invoicing-approach-from-local-and-tactical-to-scalable-and-strategic.html "Why businesses need to shift their e-invoicing approach – from local and tactical to scalable and strategic").

By contrast, graph [technology recognises potentially fraudulent activity in Allianz Benelux’s ecosystem](https://www.financedigest.com/why-technology-ecosystems-are-key-to-accelerating-autonomous-vehicle-innovations.html "Why technology ecosystems are key to accelerating autonomous vehicle innovations") by revealing concealed illicit connections. Correlating [customer data](https://www.financedigest.com/how-real-time-data-innovation-is-driving-up-customer-experience-in-fintech.html "How real-time data innovation is driving up customer experience in fintech") into a graph database also enables the Allianz Benelux anti-fraud team to expose the risk exposures in a motor vehicle or household contents context, for example.

**Positive** [business benefits](https://www.financedigest.com/benefits-of-instagram-ads-agency-melbourne-for-online-business.html "Benefits of Instagram ads agency Melbourne for online business")

It is just as important for the Allianz Benelux team to have a 360-degree [view of the customer](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view"). Its operations have been through a series of mergers and acquisitions recently. As a result, its customer [data has ended](https://www.financedigest.com/wall-st-ends-lower-treasury-yields-slide-as-data-fuels-recession-jitters.html "Wall St ends lower, Treasury yields slide as data fuels recession jitters") up in silos, which has triggered operational inefficiencies.

“When we were able to get to a level with graphs to show colleagues this holistic view of a customer, it was so much easier for them to understand rather than through a table with rows and columns. This will enable them to personalise their [services](https://www.financedigest.com/why-banks-need-to-embrace-ai-first-customer-service.html "Why Banks Need to Embrace AI-First Customer Service") towards our customers,” adds Doumen.

Allianz has already seen [real business](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business") benefits from its native graph approach. Over a two year period, a staggering €2 million of operational profit value was identified. Following the [success the Allianz Benelux team has had utilising graph technology](https://www.financedigest.com/how-to-establish-a-successful-technology-strategy.html "How to establish a successful technology strategy"), it is now planning to roll out the technology to other areas of the organisation.

Unfortunately, fraud rings are only going to get cleverer. Graph databases have the power to future-proof an organisation’s [fraud prevention initiatives by providing valuable data](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR") insight based on data relationships and connected intelligence. A highly powerful weapon in the war against financial fraud that financial institutions cannot afford to ignore.

_The author_ _is Director, Analytics and AI Program at_ [_Neo4j_](https://neo4j.com/) _, the world’s leading graph database company_. _She is co-author of_ [_Graph Algorithms: Practical Examples in Apache Spark & Neo4j_](http://neo4j.com/graph-algorithms-book/?ref=pr-) _, published by O’Reilly Media_


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---