An Analysis of Telecommunication Fraud using Outlier Detection Model based on Similar Coefficient Sum

In modern day, new technologies have a great impact on people's life. This has resulted in the increase of frauds in today's technological environment. Service providing companies such as telecommunication companies, banking companies etc. suffer from financial losses due to the customers' fraudulent behaviors. Telecommunication fraud not only financially effects the company but also effects the individual customers as well. So detection of fraud is very important in today's life. In this paper, we have identified the customer's fraudulent behaviour using outlier detection model based on similar coefficient sum. In this approach, frauds are detected by computing coefficient sum of every two objects. This method has also been implemented in Mat Lab R2010a and the obtained results show the feasibility and validity of the method.