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Accelerating Fraud Investigation with Big Data

May 2, 2013

“Organizations around the world lose an estimated five percent of their annual revenues to fraud, according to a survey of Certified Fraud Examiners (CFEs) who investigated cases between January 2010 and December 2011. Applied to the estimated 2011 Gross World Product, this figure translates to a potential total fraud loss of more than $3.5 trillion.”
- Association of Certified Fraud Examiners, 2012 Report to the Nations on Occupational Fraud & Abuse

Griffins, an insolvency and forensic services firm with operations in London and Dubai, are using big data analytics software to significantly reduce the cost, time and complexity associated with fraud investigations.

Griffins have one of the largest teams of dedicated investigators, covering both insolvency and financial investigation in the UK. In addition to handling forensic investigation and litigation, Griffins provides support services for creditors, debtors and professional advisers.

With big data technologies, Griffins can more quickly and accurately analyze data to solve cases related to money laundering, tax fraud, and theft of company assets. Many of the cases Griffins handle involve tracing the proceeds of crime, which involves analyzing structured and unstructured data sources such as bank statements, pdf files, emails, invoices and spreadsheets; establishing patterns and relationships; and making non-obvious connections between disparate sources of data.

Many liquidators have a long checklist of accounting data in insolvency cases. Big data technologies can capture that information and create algorithms to produce an instant roadmap into an investigation, which reduces budget spending for the creditors as they do not have to continue paying professional fees to discover the same information.

With help from big data analytics solutions, Griffins can:

  • gain insight when investigating complex incidents
  • produce actionable visualization of critical people and events
  • document results for potential litigation.

Key fraud indicators combine information from watch lists, known fraudsters and other relevant sources in a risk scorecard that provides visibility of risk to help enable proactive remedial action.

“The IBM technology has given us a significant edge over our competitors in our ability to perform investigative analysis faster and with greater accuracy than other firms involved in the same investigations,” said Stephen Hunt, Insolvency Practitioner at Griffins.

“For example, an international bank’s computer was seized during a criminal investigation. From the partial data available to us for civil claims, we were able to extract highly accurate patterns and make connections during our investigative analysis which led the tax authorities to query how we had obtained our information. The speed by which we were able to accurately present and demonstrate the results of the investigation was remarkable in terms of impact.”

“We think the IBM technology has a lot of future potential for our business as a critical support tool because of its ability to do the thinking for us. We plan to create a problem-solving package by developing algorithms that will answer the top five questions that often get missed in investigations. This will free up our professionals to do the rest elevating us above our competitors in our ability to perform more accurate and faster investigative analyses.”

Watch Stephen Hunt, Partner at Griffins, as he discusses how IBM big data solutions are helping Griffins accelerate fraud investigation:

Download our recorded webcast, Fighting Insurance Fraud with Big Data 

Finally, for other posts, videos, white papers, podcasts and more about fraud and the insurance industry, visit our Insurance page.