When it comes to using fraud analytic tools in place of manual processes, the benefits clearly outweigh the challenges. From increased productivity and efficiency to improved risk assessment, fraud analytics is well worth the effort at any given time. All entities that use fraud analytics are challenged with data-related issues, including accessing data, inconsistent formats from various sources, excessive file size, and data import/export issues.
Current and future technology is our greatest asset in the war against financial fraud. It is, therefore, imperative that we keep abreast of the newest innovations in fraud analytics. While it often appears that the criminals may be winning, with the use of more sophisticated fraud analytic tools, we are in the process of expanding to a different dimension.
Identify patterns indicative of fraud
Fraud analytic tools help to combat fraud by identifying patterns in financial statements that are indicative of fraud. Analytical models analyze transactional and relationship data, enabling fraud professionals to uncover formerly unknown types of fraud, identify ongoing fraud schemes, and discover fraud networks.
Make sense of big data
As fraud analytics continues to unveil success in the detection of fraud; it would seem obvious that more data would only be helpful in this effort. Big data, however, sometimes presents too many potential paths and overwhelms the fraud professional’s ability to sift through the really meaningful data.
To address this challenge and countless others, fraud professionals must move toward applying more analytical tools to their data.
In the middle of difficulty lies opportunity
What we must ask ourselves is, Can we use fraud analytics technology to help us do something in a matter of minutes that may have taken us several hours of manual work to complete in the past, and improve the quality of our work as a result? . . .
The use of fraud analytic tools has evolved from a luxury to a necessity required by internal auditors, fraud examiners, investigators, law enforcement, analysts, forensic accountants, and functions of all sizes in an effort to keep up with our data-abundant world. While there may be challenges, there are also opportunities to directly improve the value that fraud analytic tools bring to our organizations. Fraud analytics technology within the fraud industry is at an all-time high. Software is available to detect anomalies, red flags, and provide detailed visual analytics on our findings. With all of the latest news on big data analytics, we could have not asked for better tools—nor could fraud professionals have asked for a better career choice.
Now is the time to explore the latest technology that has been set before us. We should arm ourselves by enhancing our skills in the latest fraud analytics and fraud detection software as well as by attending informative training and conferences from various professional organizations. Therefore, we must be prepared for the new opportunities that will allow us, as fraud professionals, to prove our abilities. We must be proactive in an industry that is growing by leaps and bounds.