How Big Companies Are Using Digital Forensics to Fight Fraud

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How Big Companies Are Using Digital Forensics to Fight Fraud

fingerprint scanBanking is the first thing that comes to mind when people think about fraud. That’s natural, since it is a visible crime.

However, Canadian losses due to debit card fraud were down 62% from 2012 to 2013. This is partly due to increased PIN and chip technology, and to sophisticated mechanisms for fraud detection.

These mechanisms allow companies to catch fraud as it occurs, which increases law enforcement’s chances of catching the law-breakers in the act.

Protecting Your Personal Finances

Scott Gamble, the Vice President of Fraud Management and Account Recovery for TD Bank looks at the ways bank accounts can be protected from potential fraud. The fraud numbers are down, but they are not non-existent. There are many methods that fraudsters may employ in order to separate businesses and individuals from their assets and money.

The use of digital forensics and analytics today can often detect frauds as they are in action, due to data collected about all types of transactions. This allows the companies, as well as law enforcement, to head these people off before the fraud is perpetrated.

SAS Canada’s practice lead for security intelligence practices, Dan Nagle, speaks about several areas where analytics are improving, and becoming better at detecting behavior that is fraudulent. The stories can be quite telling.

Credit Card Fraud

Debit and credit card fraud is still an issue, even though it is on the decline. Analytics help companies to solve this type of fraud. HSBC has a focus that scores risks of each credit card transaction. It’s important not to deny legitimate users while disallowing illicit use. Analytics, then, are intended to prove that you are who you claim you are.

Using this system, customers won’t be embarrassed with legitimate transactions that are declined. Yet, they need to be protected from fraudulent card use. The best system will hunt for period fraud, like money laundering. This system merges compliance and anti-fraud systems, creating a complete picture of each customer’s transactions, and of interactions and links between their customers. It follows the money, wherever it goes, which allows the bank to determine, using analytics, whether a transaction they are studying is legitimate or fraudulent.

Utilities Fraud

Utility companies also experience losses from illegal – and even legal – entities attempting to avoid paying utility bills by stealing power or bypassing meters. Providers can assure how each customer uses the power, which allows them to predict demand accurately and adjust the capacity.

The challenge for utility companies is the large amount of data that must be sifted through to detect fraud. In addition, there is too much data to store indefinitely. This means that any fraud must be caught in real time, before any evidence is gone.

The solution for utility companies is an analytical system based on smart meters and digital forensics. They find power fluctuation irregularities using signals and analytics.

Health Care

Health care is more and more a target of fraud, even though electronic prescriptions and patient records are helping to deter and detect fraud. There is a large business in illegitimate prescriptions for drugs like Oxycontin, which are restricted. Organized crime may coerce people who are vulnerable into filling these prescriptions, and then they resell the drugs.

SAS worked with a Canadian healthcare system that is mandated to ensure behavior by pharmacies and other parties is legitimate. This is being done so that a system can be built to separate good prescriptions from fraudulent ones. It examines what is prescribed, where it was purchased and determines fraud potential for every transaction.

The analytics software utilized by the company uses very sophisticated algorithms that will detect patterns that indicate illegal activity. In this way, law enforcement can catch the fraudsters before the trail goes cold.

Need help fighting fraud? We can help.

If your business is facing issues with fraud, the experts at Prudential Associates can help.  Our team of investigators has significant experience in the area of using digital forensics to protect companies from fraud as well as to catch criminals who perpetrate these cases.

Call us today for a confidential assessment of your needs.