Data analytics is key to fighting tech-savvy fraud – KPMG survey
Press Release | 25th July 2016
Reading, UK — 25th July, 2016: Corporate fraudsters are increasingly using technology to perpetrate frauds, and companies need to fight back with data analytic technology of their own, according to the KPMG Global profiles of the fraudster study.
Although technology is used to both perpetrate and detect fraud, the study found that it was more often the fraudsters who had the upper hand. Technology was a major enabler for 24% of fraudsters, but data analytics, which KPMG cites as a very important tool in detecting fraud, accounted for the detection of only 3% of the frauds analysed.
“An increasing number of organizations are introducing data analytic solutions to search for unusual transactions amid millions of day-to-day sales and purchases. But data analytics does not appear to be fully deployed by companies”, the authors of the study said. “Proactive data analytics, searching for fraud amid anomalies and suspicious business activity, accounts for only 3 percent of frauds detected.”
Companies need to turn to technology because their anti-fraud controls aren’t working.
“Anti-fraud controls (such as internal audit, suspicious managers and co-workers, and anti- fraud processes) are not strong enough, and the problem is growing.” KPMG’s survey of 750 fraudsters worldwide found that weak internal controls were a contributing factor in no less than three fifths of them.
David Griffiths, CEO of FISCAL Technologies, the world-leading provider of accounts payable forensic software, commented: “Fraudsters are increasingly using technology to infiltrate corporate systems, making it more difficult to detect using standard fraud controls. Companies must fight fire with fire. Continuous forensic data monitoring can analyse thousands of invoices and payment requests, spot anomalies and identify potentially fraudulent activity more effectively and cheaply than any manual checks. It is the best risk and compliance tool in an organisation’s accounts payable arsenal.
“In addition to saving money and potential reputational damage by detecting fraud, forensic data analytics will also identify overpayments and errors, which can be recouped to more than cover the cost of the software.”
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About FISCAL Technologies:
FISCAL Technologies is the leading provider of forensic solutions that empower purchase-to-pay teams across the globe to protect organisational spend. Incorporating unique technology to reduce risk in the supply chain, FISCAL solutions are used on a continuous, preventative basis to protect supplier spend, defend against fraud, increase profitability and drive process improvement.
Since 2003, FISCAL has safeguarded hundreds of millions of payments and is now relied on by over 250 leading organisations.
For more information, please visit www.fiscaltec.com.
0845 680 1905