The section of the Association of Certified Fraud Examiners’ (the ACFE) recently released 2014 Report to the Nations on Occupational Fraud and Abuse I find most interesting focuses on the anti-fraud controls in place at the organizations victimized by fraud. While there is no “silver bullet” to ensure fraud will not occur, anti-fraud controls help mitigate and manage fraud risks. Making its debut on the list of anti-fraud controls in the 2014 Report is “proactive data monitoring/analysis.” First, as a data mining specialist, I am very excited to see this control on the list. While I believe it was always included as a component of many other controls, i.e. management review, internal audit, etc., categorizing proactive data monitoring/analysis individually is important. It not only illustrates the growing importance of data analytics for organizations around the world, but also highlights just how effective data analytics is for fraud prevention and detection.
One of the best ways to learn how to use data mining for fraud detection is to talk to others already doing so and reading articles, blog posts and case studies about how they got their program up and running. If you would like to learn more about the use of data mining for fraud detection and management of fraud risks, a few such reading materials, and a couple webinars, are below.
(Source: ACL Blog)