Detect, prevent and predict: Stay one step ahead of financial fraudsters with analytics

Marketing Communication Strategist, Public Sector, IBM

Financial crime is the most profitable—and the most damaging—industry in the world, with a total loss of $3.5 trillion from the exposure to fraud, money laundering, waste and abuse. Within this fraud landscape, organizations face a difficult challenge—the ability to adapt faster than the criminals can innovate.

Leaders in government and executives from the banking, healthcare and insurance industries continue to say they are not keeping pace with the relentless speed of threats. Not only are they slow at detecting potential threats, but they are also challenged to identify patterns and obscure relationships efficiently. Disparate fraud systems, which don’t share data, limit the ability of investigators and analysts to see the full picture of fraud exposures.

Analytics for an enterprise view of fraud Counter Fraud Management provides an enterprise view of fraudulent activity, placing layers of analytics across multiple channels. The layers include entity analytics, predictive analytics, business intelligence and dashboards, to name just a few, which offer clients a holistic view of their threat landscape.

At the IBM i2 Summit for a Safer Planet, Mark Stolle, fraud analyst, special investigations unit (SIU) at ACCC Insurance, said that designing and implementing an analytical fraud program for an insurance company can be a daunting task that involves much more than providing analytical support for field operations. A sound structure and long-term strategy need to be in place to detect, prevent and predict fraudulent activity.

ACCC Insurance’s initial fraud framework included the reactive and proactive capabilities, and it was then expanded to the preventive and predictive capabilities. The capabilities embedded in IBM Counter Fraud Management provide clients the ability to improve the effectiveness and efficiency of their operations. Detection and investigation cycles are compressed, allowing businesses to take action sooner and stop fraud earlier than ever. And the ability to integrate various data sources helps improve the observations space and the ability to see highly complex schemes.

Expanded capabilities for detection and investigation 

Using advanced analytics, IBM aims to help clients detect risk sooner and drive best practices in the area of compliance and risk management. Learn more about the IBM Counter Fraud solution. And be sure to register for IBM Insight 2015, 25–29 October 2015, in Las Vegas, Nevada, where you can follow a counter fraud–tailored track.