Fraud Intelligence

If last year the Cinderella of policing found her glass slipper with the launch of the National Fraud (Strategic) Authority, in 2009 she has been able to stay at the ball with her dance card filled, Commissioner Mike Bowron of the City of London..

Timon Molloy, Editor

We know from experience, write Nigel Iyer and Veronica Morino, that the true annual cost of fraud is enormous but mostly hidden, at least until the damage is done. Fraud threatens organisations, even whole economies – witness the current global financial crisis, which kicked off with the disclosure of massive mortgage fraud in the US. However, if most is not visible, we ought to ask the question: ‘Why do we spend such a disproportionate amount of time, money and effort on investigating after the event rather than on detection and prevention before the worst happens?’ This article explores more efficient and alternative approaches to managing fraud risk.

The global economic downturn has left many companies in a difficult position. On the one hand there is a great deal of pressure to reduce costs and ensure that any risk management technology is deployed as effectively as possible. At the same time, the amount of data involved in a potential litigation/regulatory matter has grown exponentially in recent years and this, coupled with the added complexity that a greater amount of data now originates from multiple jurisdictions, is adding to the time and cost of resolution. On the positive side, the current economic climate has brought to the fore some of the latest innovations in risk management technology and many of these, if deployed in the right manner, can greatly reduce the resource needed to gather and manage information, says Costa Kypre of Kroll Ontrack.

In July, the Serious Fraud Office (SFO) issued written guidance to the corporate sector, setting out its approach to overseas corruption, and, in particular, the treatment that companies which self-report can expect. [1] Is this but the latest instance of UK emulation of US enforcement policy in the area? Jeremy Summers and Rod Fletcher of Russell Jones & Walker reflect.

Report by David Haworth, Brussels

Great detectives collect fingerprints, examine evidence, and conduct interviews to figure out what happened at a murder scene. Likewise, it is a forensic accountant’s job to detect fraud based on the evidence. But what, asks Ivan A. Garces, if the detective - or the forensic expert - could see the future, and keep the victim safe from harm? Wouldn’t that be better?

Exponential growth in social media presents the double edge of all technical innovation, a force for good but also expanded potential for the devious. Ethics policies must keep pace, says Luis Ramos, CEO of The Network.