Data Mining (Fraud Analytics)
Helping improve the rate of
fraud detection & assisting
financial crime investigations
Vincents Forensic Technology team have expertise in Data investigations and Analytics, using proprietary technology and industry standard tools designed to help improve the rate of fraud detection and assist our clients’ financial crime investigations.
In conjunction with our expert forensic accounting analysis we use data-mining, targeted querying and data matching within financial data (e.g. MYOB data file) to assist investigations, while leaving the original evidence data untainted.
We can analyse your accounting data files and perform a series of detailed tests on the Electronically Stored Information (ESI) in your records including user-entered information as well as the hidden metadata of the information, such as who entered it and when. Think of it as a “risk health check” for the business.
- Investigates suspected fraud activity
- Evaluates fraud risk to assist in management
- Comprehensive data mining and thorough forensic data interrogation including targeted queries and data matching
- Analyses bulk data quickly –can do in an hour what would take an auditor days or weeks
- Examines data integrity e.g. receivables and payable ledgers, invoicing and employee profiles
- Extracts and examines metadata from files i.e. fields not normally available to conventional users are available e.g. User ID, Date Entered, Time Entered
- Highlights areas, if any, that require a more thorough investigation
- Cost effective – ideal for investigations and regular review procedures
- Maintains original integrity of evidence files
- Checks for business’ compliance with tax laws regarding withholding arrangements
- If required, this can be a discrete process to ensure that business relationships are not affected unnecessarily
- If required, this can be an overt process making employees aware that investigators are able to monitor transactions, thus having a beneficial effect on the accounting process
- Irregularities in financial data
- Unusual journal entries
- Incorrect payment data
- Invalid ABN’s and ACN’s
- Payment anomalies (e.g. duplicated transactions)
- Highlights further investigation required to determine if accounting records are inaccurate or have been tampered with
- Banking and Finance – Compliance reviews, risk profiling of customer accounting files
- Accountants – Regular reviews / audits of client business information
- Lawyers – Investigating matters and extracting expert evidence
- Business owners – Investigating suspected fraud and managing risk within their business
The cost of corporate fraud is enormous and there are plenty of people talking about it, but the number of cases remains stubbornly high. The estimated cost of fraud in Australia is around $6 billion annually, with Australian Institute of Criminology data showing that reported occurrences are consistently around 100,000 each year.
There is no substitute for professional judgment, experience, interviews and document reviews, but computer-aided forensic investigation techniques supported by data mining can cut down the time and cost of traditional reviews and improve the quality of evidence gathered.