Proactive Fraud Detection Program

 

  The team:

           Domain expert who understands the industry and business
           Fraud expert
           Technology expert

 

1.      Understand the business
     a.     
Physical process
    b.      paper/computer processes

2.      Identify the possible frauds
    a.     
Insiders
    b.     
Outsiders
    c.     
Alone
    d.      
In collusion

3.      Catalog possible fraud symptoms
    a.     
Analytical
    b.     
Document/records
    c.     
Control

    d.     
Lifestyle
    e.     
Behavioral
    f.       
Tips & complaints

4.      Use technology to gather data about symptoms
    a.     
Gain direct access to databases

    b.     
Use main computer processing power not desktops
    c.     
Store intermediate results in temporary data warehouses
    d.     
Extract from full populations, avoid sampling

5.      Analyze the results
    a.     
Use scripts
   
b.      Analyze data subsets separately
    c.     
Use time analysis techniques
    d.     
Generate norms from the data
    e.     
Deal appropriately with data noise
   
f.        Improve scripts and procedures with each run

6. Investigate the symptoms

 

Source: Association of Certified Fraud Examiners. (2005). Advanced Computer-Aided Fraud Prevention and Detection. Austin: TX. 

- R. S. Kulzick - 3/22/2007 -

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.

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Copyright 2007 Kulzick Consulting, PA - Last modified: September 13, 2008