Big Data Plays a Big Role in Fraud Detection
With fraud incidents posing significant threats to organizations, a growing number of executives are realizing that big data can greatly help to improve their detection and prevention efforts. However, relatively few companies are effectively deploying what are called forensic data analytics (FDA) technology tools, according to a recent survey from EY (formerly known as Ernst and Young). In conducting assessments of potential fiscal misappropriation, FDA is delivering notable ROI with respect to reducing and/or eliminating losses, according to the accompanying report, titled "Big Risks Require Big Data Thinking." Still, a number of barriers stand in the way of adoption, including leadership's lack of awareness about the tangible benefits. "By combining multiple data sources and leveraging advanced FDA tools, companies are now able to gain new and important insights from their business data," says David Remnitz, leader of global forensic technology and discovery services operations under EY's Fraud Investigation and Dispute Services practice. "Given that companies are likely generating substantial data volumes, it would be prudent for board members and other stakeholders to encourage management to accelerate their efforts to glean as much insight as possible from their big data. Better risk assessments and more effective compliance, among other benefits, are likely to follow." More than 450 global executives took part in the research.