THE CHANGING ROLE OF ANALYTICS IN FRAUD INVESTIGATION · THE CHANGING ROLE OF ANALYTICS IN FRAUD...
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©2015
THE CHANGING ROLE OF ANALYTICS IN FRAUD INVESTIGATION
For business executives in multiple functions across many industries and geographies, big data
presents tremendous opportunities. For those charged with deterring, detecting, and investigating
misconduct, mining such data can be a particularly powerful tool in their overall compliance and
anti-fraud efforts. This session will look at the importance of identifying the right tools and
turning big data into information. It will also share insights from the recent EY Global Forensic
Data Analytics Survey 2014.
You will learn how to:
Use forensic data analytics (FDA).
Choose the right tools for the job.
Look for missed opportunities.
ROSLYN LEE, ACA
Senior Manager, Fraud Investigation and Dispute Services & Data Analytics
EY
Ireland
Roslyn Lee is a senior manager in the Fraud Investigations and Disputes team in EY Ireland. She
has more than 14 years of experience in the professional services industry. Having joined EY in
2000, Lee led the audits of a number of large pharmaceutical and technology clients. She
specializes in audit risk assessment and the implementation of data analytics for financial audit.
She is highly experienced in performing fraud risk assessments and designing data analytics
procedures to address those fraud risks. More recently, Lee has also led a number of high-profile
fraud investigations in the financial services sector, where she used data analytics to quickly
develop an understanding of transactions and cash flows.
“Association of Certified Fraud Examiners,” “Certified Fraud Examiner,” “CFE,” “ACFE,” and the
ACFE Logo are trademarks owned by the Association of Certified Fraud Examiners, Inc. The contents of
this paper may not be transmitted, re-published, modified, reproduced, distributed, copied, or sold without
the prior consent of the author.
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NOTES In this session, we look at the following areas:
1. Setting the Scene: 13th EY Global Fraud Survey—
Unethical Behaviour Still Exists
2. Why Use Forensic Data Analytics (FDA): Key Benefits
and Adoption
3. Technology: The Right Tools for the Right Job
4. Missed Opportunities: Turning Data into Information
We will also walk through two examples of FDA: 1)
structured data and 2) unstructured data
13th EY Global Fraud Survey (link)
To start this journey we will walkthrough some results
from the 13th EY Global Fraud Survey. This survey was
conducted between November 2013 and February 2014.
The researchers conducted 2,719 interviews with various
executives in 59 countries and territories. The survey
approach details are included in Appendix A of this
document.
We will link some of the results from this survey back to
the fraud triangle, and we will also consider the regulatory
pressures companies are under and the complexity and
frequency of frauds occurring.
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NOTES
We will then consider what all this means for us.
Why Use Forensic Data Analytics (FDA): Key Benefits
and Adoption
This session will be driven by the results from the EY
Global Forensic Data Analytics Survey 2014, Big Risks
Require Big Data Thinking. The survey approach details
are included in Appendix B of this document.
We will define what we mean by FDA, as well as the
benefits of FDA.
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NOTES When considering the benefits of FDA we will consider:
The most recent ACFE Report to the Nations on
Occupational Fraud and Abuse
How FDA can enhance the risk assessment process and
improve fraud detection
Where FDA is deployed
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NOTES Embedding Analytics in Our Fraud Investigation
Approach
It was noted in the EY Global Forensic Data Analytics
Survey 2014 that the majority of people surveyed primarily
focus on the upper-left quadrant, or the traditional rule-
based, descriptive queries and analytics. The future of FDA
lies in statistical analysis and data visualisation and text
mining.
We will also look at the key attributes of using FDA and
how FDA efforts align well with perceived company risks.
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NOTES Top Fraud Risk Concerns
We also consider what the users of FDA consider the main
benefits of using FDA in their anti-fraud and anti-bribery
program, and some common testing areas of FDA in
investigations.
And finally in this section, we will look at where FDA is
deployed:
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NOTES
We will then transaction to our next session.
Technology: The Right Tool for the Right Job
It should be noted that there is definite room for
improvement for more sophisticated FDA technologies.
When the following question was put to our survey
participants, a large majority of them identified the basic
tools—Microsoft Excel and Access SQL—as tools they
frequently used, with fewer using visualisation or big data
technologies.
From the tools mentioned, which, if any, are you currently
using in your organisation?
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NOTES
In this session, we also look at what we mean by structured
and unstructured data. This will then lead us to consider the
final area—Missed Opportunities: Turning Data into
Information, and indeed the next steps.
65%
43%
29%
26%
26%
21%
21%
11%
2%
2%
0% 10% 20% 30% 40% 50% 60% 70%
Spreadsheet tools such as Microsoft Excel
Database tools such as Microsoft Access or…
Continuous monitoring tool, which may include…
Text analytics tools or keyword searching
Forensic analytics software (ACL, iDEA)
Social media/web monitoring tools
Visualisation and reporting tools (Tableau,…
Statistical analysis and data-mining packages…
Big data technologies (Hadoop, Map Reduce)
Voice searching and analysis (NEXIDA, NICE)
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NOTES
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NOTES
We have identified that the missed opportunities relate
mainly to lack of awareness and expertise. We look at these
and consider how we can change them to ensure more
awareness. We will finally consider the five success factors
to embedding FDA in organisations.
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NOTES Sources
EY, Big Risks Require Big Data Thinking, Global
Forensic Data Analytics Survey, 2014.
Association of Certified Fraud Examiners, Report to the
Nations on Occupational Fraud and Abuse, 2014.
EY, 13th Global Fraud Survey, Overcoming
Compliance Fatigue: Reinforcing the Commitment to
Ethical Growth.
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NOTES Appendix A: 13th EY Global Fraud Survey Approach
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NOTES
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NOTES Appendix B: EY Global Forensic Data Analytics Survey
2014, Big Risks Require Big Data Thinking, approach
The information in this pack is intended to provide only a
general outline of the subjects covered. It should not be
regarded as comprehensive or sufficient for making
decisions, nor should it be used in place of professional
advice.
Accordingly, Ernst & Young accepts no responsibility for
loss arising from any action taken or not taken by anyone
using this pack.
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2015 ACFE European Fraud Conference ©2015 14
NOTES The information in this pack will have been supplemented
by matters arising from any oral presentation by us, and
should be considered in the light of this additional
information.
If you require any further information or explanations, or
specific advice, please contact us and we will be happy to
discuss matters further.