Gerard Blokdijk has been working in analytics and developing scorecards for many years. In his new book ‘Fraud Analytics: Standard Requirements’ he aims to provide: “the Fraud Analytics guide I wish I had when I needed it; a tool to help develop a detailed vision of all areas impacted by a Fraud Analytics implementation, and a useful tool for scoring readiness and implementation quality.”
He employs the classic analytics approach using the standard criteria:
In each of these criteria Blokdijk provides literally 100s of questions to ask of your organisation, such as:
- Have we provided written notification to our lower-tier sub recipients regarding their responsibilities to be alert for instances of fraud, abuse, and criminal activity committed by staff, contractors, or program participants and to report all such instances immediately?
- Do we measure Accuracy? One data protection risk lies in the detection rates, specifically the false positive and false negatives, i.e. how many people are mistakenly identified as fraudulent or how many fraudulent claims are not identified?
- Do we have an anonymous and confidential Whistleblower policy for communicating and receiving information regarding fraud, errors in financial reporting and misrepresentation or false statements made by management?
- Do you have a comprehensive data-sharing program in which others share information about patterns, and use that information to operationalize strategies and close gaps in responses and services?
- Do we have mature business intelligence environments that can integrate fraud analytics within our current environment to take advantage of processes and architecture that are already in place?
- Is information involved in electronic commerce passing over public network protected against fraudulent activity, contract dispute and unauthorised disclosure or modification of information?
- Does our fraud analytics rely on customised methodologies to suit a particular investigative need and is it based upon a large analytics library of possible fraud indicators?
The Art of Service's Fraud Analytics Standard Requirements also provides an Excel Dashboard to accompanying eBook which is for managers, advisors, consultants, specialists, professionals and anyone interested in Fraud Analytics assessment.
The book will be available at Amazon, Barnes and Noble and all major retailers later this month. Details can be found here.
CTMfile take: This is a structured, in-depth review of how to review your current fraud position and how to work out how develop the controls and processes that will begin to solve the problem. Knowing what questions to ask is the starting point in fraud analytics. The level of questions and analysis required will surprise, but this level of details is essential as fraud is one of the biggest problems for corporates today.
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