Applied Mathematics Commons^™

Fine-Tuning A 𝑘-Nearest Neighbors Machine Learning Model For The Detection Of Insurance Fraud, Alliyah Stout

Honors Theses

Billions of dollars are lost within insurance companies due to fraud. Large money losses force insurance companies to increase premium costs and/or restrict policies. This negatively affects a company’s loyal customers. Although this is a prevalent problem, companies are not urgently working toward bettering their machine learning algorithms. Underskilled workers paired with inefficient computer algorithms make it difficult to accurately and reliably detect fraud.

The goal of this study is to understand the idea of -Nearest Neighbors ( -NN) and to use this classification technique to accurately detect fraudulent auto insurance claims. Using -NN requires choosing a value and a …