ChallengeCreate a comprehensive risk management solution that will swiftly detect fraud in international trade
Solution5 In-house-built ML solutions that cover the full spectrum of risk management
About the Project
Create a comprehensive risk management solution that will swiftly detect fraud in international trade
Fraud within the international trade process can take various forms. The most widespread types of fraud include misclassification (i.e., assigning goods to the wrong category), undervaluation (i.e., falsely declaring the invoiced price of the goods), and the falsification of documents.
Each country develops its own approaches and mechanisms to detect fraud. These include product valuation and classification validation, documentary check, and physical inspection of goods. In the traditional workflows, the risk specialists at customs manually check the declared information against what is stated in the trade documents. They confirm the validity of the submitted documents, physically inspect almost all the goods to make sure that the quantities, weights, and other descriptive information correspond to what was declared. Finally, they manually create risk rules and criteria to detect fraud.
Detecting fraud with these traditional customs procedures is expensive and time-consuming. Moreover, considering the limited number of available resources and the ever-growing number of transactions, it is becoming almost impossible to inspect all the transactions to identify all the fraud. This presents a challenge for the industry: how can we automate the process of identifying suspicious transactions?
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