How an Actuary Saved Elon Musk

(or, rather, how PayPal did well where similar services failed)

It’s how an actuary quantified the issue w/ fraud, and came up w/ an IBNR for fraud losses using the chain-ladder method. Evidently, everybody had been underestimating how bad transaction fraud was. Then they used predictive models to detect fraud.

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I just like the definition “An actuary is someone who confronts the uncertainties of the future.” Bring it on psychics.


lol Chain Ladder.