Analytical Software for Fraud Detection 29th August, 2007 Evan Stubbs – SAS Solution Manager, Analytics

Global Reach & Local Presence 238 offices in 53 countries 9,100 employees 3.5 million users worldwide 40,200 sites 113 countries Hundreds of local user groups globally Copyright © 2006, SAS Institute Inc. All rights reserved.

Corporate Strength & Stability Reliability in a High-Risk Economy Consistent revenue growth Continuous profitability Commitment to innovation Investment in domain & industry expertise 24% R&D Spend: Percentage of Total Revenue Copyright © 2006, SAS Institute Inc. All rights reserved.

We’re going through an information revolution … WWW: 170 Terabytes Emails: 35,000,000,000/day (400,000 Terabytes/yr) Telephone: 17.3 Exabytes/yr Source: University of California, Berkeley Copyright © 2006, SAS Institute Inc. All rights reserved.

And our information sources keep growing … Customer information Purchases / Services Demographic, Financial Profiling Time Series Text-based customer interactions Non-text-based customer interactions ID columns Copyright © 2006, SAS Institute Inc. All rights reserved.

Detecting fraud – how do you do it? Predictive modelling? Customer matching? Risk measurement? Outlier detection? Comparing predicted claims against actual claims?

Industry-Specific Application Industry Solutions Copyright © 2006, SAS Institute Inc. All rights reserved.

Industry-Specific Application Industry Solutions Copyright © 2006, SAS Institute Inc. All rights reserved.

Industry-Specific Application Industry Solutions Copyright © 2006, SAS Institute Inc. All rights reserved.

SAS for Health Insurance

Key activities in the analytical lifecycle

One Common Infrastructure Fraud Identification Model Lifecycle Data Set Creation Shared Metadata Shared Data One Common Infrastructure Business Metadata Model Validation & Performance Tracking Model Creation Model Scoring Model Registration Copyright © 2006, SAS Institute Inc. All rights reserved.

Closed Loop Analytics: Detailed

Business Intelligence Market Share SAS is the no.1 ranked BI* vendor in Asia Pacific** in 2006. Source: IDC Asia/Pacific Semiannual Business Intelligence Software Tracker, 1Q07, May 2007 *IDC figures include: End-user Query, Reporting & Analysis and Advanced Analytics Software. All figures refer to total software revenue including license, maintenance, and subscription/other software revenue and excludes other services revenue. IDC data covers the full-year vendor revenue in 2006 **Asia/Pacific in this case refers to the following countries: Australia, Hong Kong, India, Korea, Malaysia, New Zealand, the PRC, Singapore, Taiwan and Thailand Copyright © 2006, SAS Institute Inc. All rights reserved. 14

Gartner: Magic Quadrant for Customer Data Mining, 2Q07 Source: Magic Quadrant for Customer Data Mining, 2Q07, May 8, 2007, Gareth Herschel The Magic Quadrant is copyrighted February 21, 2007 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Magic Quadrant graphic was published by Gartner, Inc., as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available at http://www.sas.com/news/analysts/by_firm_gartner.html Copyright © 2006, SAS Institute Inc. All rights reserved.

Gartner: Magic Quadrant for Business Intelligence Platforms, 1Q07 Source: Magic Quadrant for Business Intelligence Platforms, 1Q07, January 2007, Kurt Schlegel, Bill Hostmann, Andreas Bitterer The Magic Quadrant is copyrighted January 2007 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Magic Quadrant graphic was published by Gartner, Inc., as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available at http://www.sas.com/news/analysts/by_firm_gartner.html Copyright © 2006, SAS Institute Inc. All rights reserved. Copyright © 2006, SAS Institute Inc. All rights reserved. 16

Copyright © 2006, SAS Institute Inc. All rights reserved.