The Evolution of Forensic Investigations Series
An analytics driven approach to fighting fraud
Forensic analytics is a critical capability in the future of investigations. Our five-part series explores analytics-driven fraud fighting approach, the need for available and accurate data, technologies required to extract data and realise its value, and continuous monitoring of transactions and activities, a process that produces invaluable results.
Integrating human and machine intelligence
Organisations can better identify and investigate attacks, as well as thwart future ones, by combining artificial intelligence (AI), machine learning, and statistical concepts of cognitive analytics with skilled forensic investigation of fraudster motives and methods. Such an approach can help investigators get to the bottom of the problem quicker and identify the root cause of incidents to improve their sensing capabilities and help prevent re-occurrence.
Overcoming data challenges in forensic investigations
Organisations across industries, and regulators themselves, are starting to use integrated, data-driven analytics approaches to identify potentially fraudulent transactions. Those that do not could potentially rapidly fall behind and face increasing financial, reputational, legal, and regulatory risks. Organisations can take several steps to prepare an effective foundation for analytics-driven investigations and fraud monitoring.
Technology challenges in investigations
Fraud can be as simple as intentionally making a duplicate payment. Or, it can be highly sophisticated, as fraudsters execute an ingenious play of intertwined transactions and third-party chicanery. However slick the scheme, fraud has been a persistent drain on an organisation’s assets and a threat to people’s livelihoods. As perpetrators expand their larcenous repertoire, organisations across industries are starting to use integrated, data-driven analytics approaches to identify potentially fraudulent transactions.
Continuous fraud monitoring
Organisations that use technology to monitor for potential risks, as well as analytics to identify new emerging threats, may be better positioned to mitigate the blind spots in their fraud defenses and address the risks of being blindsided financially, operationally, and legally. Rather than relying on rules, analytics produce new insights driven by what the data is showing. Attention to several considerations can help an organisation generate greater value from its monitoring activities.
Forensic analytics in fraud investigations
Forensic analytics combines advanced analytics with forensic accounting and investigative techniques to identify potential rare events of consequence—needles in the massive haystacks of data and information that can signal trouble in the making. Urgently needed to meet growing regulatory and customer demands for fraud mitigation, forensic analytics can reveal signals of emerging risks months or even years earlier than possible otherwise. Several methods warrant consideration in developing and applying forensic analytics.