Fraud is a deliberate misrepresentation or deception intended for financial gain. Fraud is a criminal act. Abuse refers to similar action not proven to be criminal. Financial crimes include money laundering and cyber-crimes. The quantum of loss due to fraud and abuse is enormous.
According to the 2014 Global Fraud Report, longer the fraud lasts within an organization, the more financial damage they tend to cause. Also fraud and financial crime carry substantial direct and hidden costs; including
- Affects customer trust and loss of business
- Causes reputational damage
- Incurs costs associated with investigation
- Impacts productivity
Fraud control measures are being overlooked by large number of organizations. However, when organizations take proactive fraud detection measures they are able to identify fraud and abuse much early and limit losses. The 2014 Global Fraud Report by Association of Certified Fraud Examiners study found that proactive data monitoring and analysis was used by only 35% of the victim organizations. It also found that presence of control measures made fraud cases 60% less costly and 50% shorter in duration.
Take steps to detect fraud early in the cycle. By deploying proactive measures to discover potential fraud and abuse, you can go a long way to reduce cost of operation and improve customer experience.
Fraud detection services such as IBM Counter Fraud Discovery Services is designed to help organization prevent and intercept new cases. The solution focuses on discovering fraud and abuse by retrospectively reviewing historical data, analyzing patterns and building watch lists to identify individuals or organizations that might be conducting such activities. It has proven accelerators; statistical and predictive models to identify suspicious and anomalous activity and help with the prioritization of investigations. Domain expertise and advanced analytics are combined to identify suspicious and anomalous transactions. Integrating these capabilities strengthen the operational processes to prevent unwanted transactions and route high risk transactions to client’s investigation team. Clients can now identify and process non-suspicious transactions much faster, aid operational cost reduction and exceed customer expectations. IBM clients have started on this journey by taking simple steps like sharing transactional data with us and receiving referrals with prioritized target list to initiate investigation.
Benefits realized by some of our clients:
- Improved checks and controls helped a leading Telco organization identify 50 high risk cases, and initiate investigation of cases that represented approx. $700M in abuse
- Embedded fraud analytics into transaction processing helped a global money-transfer company increase its ability to identify and interrupt potentially fraudulent transactions by 40%
- Automated profile analysis technology helped a US based managed health care company reduce cycle time for identification and verification of questionable claims by 30% – 40%
Click here to know more about IBM Counter Fraud.
Sign-up for the one-day IBM Smarter Counter Fraud Workshop
by writing to email@example.com
This is a structured, full-day workshop where our counter-fraud experts will engage with client team to gain better understanding about their business processes, functional maturity and gaps to detect and manage fraud. Clients get a good understanding about IBM capabilities, our success stories and industry best practices including latest insights from IBM Institute of Business Value on fraud and risk management.