Fraud


Organizations are continually looking for ways to improve their approach to Fraud risks such as anti-bribery and corruption in emerging markets. Dealing with reputational harm and the business risk associated with cyber-crime has become part of the board’s responsibility.

Fraud risk is gaining traction with globalizations and outsourcing. With a number of rapidly growing economies and increasingly sophisticated consumer markets, organizations continue to heavily invest across a wide range of industry sectors. However, the perceived level of corruption in the emerging markets, and the attention of regulators on business conduct in the region, is prompting organizations to reassess their controls, testing and compliance programs.  For example, banks and securities firms have incurred billions of dollars in restitution, fines and litigation costs in recent years and now the financial services industry must respond to broad regulatory focus on systemic risk and react to Consumer Financial Protection Bureau (CFPB) rulemaking on mortgage loans, student loans and credit cards.

Global regulators and the Department of Justice continue to press financial institutions on the issues of money laundering, trade sanctions and bribery and corruption; stressing the need for robust program controls, sophisticated monitoring systems and knowledgeable personnel at the watch. The regulatory scrutiny is now moving beyond the traditional banking sector into non-banks, including credit card issuers, insurance providers and gaming enterprises, prompting the need to seriously review and enforce their compliance programs and controls.
Staying on top of the differing anti-corruption laws and standards, particularly in markets where the rule of law is not always clear, presents a challenge and opportunity for companies that depend deeply on growth in those markets. These companies need greater attention to compliance processes as well as overall internal control enhancements.

Our Risk Advisors help you develop a score card by transaction type and design rules to monitor unusual activities in critical applications. We help you develop a transaction monitoring system that notifies management of suspected fraudulent transactions within and across applications and systems. Our independent review of unusual transactions identifies false positives, false negatives and valid fraud incidents. We work with key management such as Chief Information Security Officers to discover information security vulnerabilities that can cause attacks and compromise organizational reputation due to their damaging and potentially public nature.  We know that fraud management requires a risk-based response that is tailored for your organization as well as is consistent with risk management best practices.  We provide the benefit of our broad industry experience, our deep subject matter expertise and the latest insights from our work worldwide.

We utilize FulcrumWay OAT Analytics to leverage "Big Data" in the context of compliance and anti-corruption to help assess new risks.  Data analytics, traditionally the domain of marketing and sales, has effectively migrated into the realm of internal audit, compliance, and corporate oversight. Forensic data analytics can now be utilized for the proactive monitoring of business data.  A better understanding will be gained of the risks and rewards attained with the forensic data analytics and how these techniques can be used to transform data to help detect potential instances of fraud and implement effective fraud risk mitigation programs.