How important is tech for counter fraud teams?
The following is an extract from the Clue report Counter Fraud: Navigating the Path to Prevention, based on a survey of counter fraud professionals in government, public sector and law enforcement.
The rapid digitalisation of business has become fraud’s greatest enabler. If criminals are making effective use of technology, “we should be”, said one respondent in our survey of counter fraud investigators.
For a concerning 15% of those surveyed, technology was viewed by senior management not as an investment, but an overhead. That’s despite reduced average losses of 40% among companies who designed weaknesses out of processes and systems, according to findings by University of Portsmouth Centre for Counter Fraud Studies.
For most organisations (75%), the adoption of counter fraud technology is regarded as an important driving force in effective fraud prevention.
Acquiring investment in counter fraud technology
While more than a third of respondents (35%) claimed to be able to access the investments they required, for others, organisational recognition doesn’t translate to reliable support.
In the case of acquiring data science tools, teams are often “in the queue” with other departments within their organisations who are equally reliant on accessing data insights. But the central issue in acquiring budgets is that the return of investment into technology that facilitates preventative activity is – by its nature – difficult to quantify.
On the other hand, results of handling reactive cases can be clearly underlined. The irony is that the most beneficial solutions available to investigations teams support better reporting through data visualisations, dashboards, and exports, enabling teams to quickly and easily present stakeholders a regular and concise snapshot of current progress. This can help ensure better understanding and awareness across the organisation of the value of investments.
Investment typically follows identification of the problem, so prevention strategy investment may not all be forthcoming.Survey respondent
A lack of immediate buy-in from the top doesn’t mean investigations teams should be deterred from open dialogue with technology partners. If they are worth their salt, providers will supply ample evidence of how solutions have supported similar cases, explain how they can be tailored to an organisation’s unique circumstances, and be able to articulate a firm outline of expected time to value. This information supplies the bricks and mortar for a robust business case.
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