Isn’t it amazing that we now live in a world where everything can be recorded, stored and analyzed? Everything that we do in the organizations we are a part of can be used in detecting fraud and stopping it in its tracks!
Using Data Analytics Software
Are you aware that by using data analytics software, companies can scan their internal data and look for analogous patterns in a span of minutes? With this technology, reducing the cost of fraud and detecting it is made a lot easier, cheaper, and more efficient.
What’s really surprising is the fact that a huge percentage of the largest companies have no data analysis program at all. They are not taking advantage of the available resources for monitoring data, thereby leaving themselves more vulnerable to fraud. This may be because some organizations believe that fraud cannot happen to them, but again, they are wrong.
The lessons in occupational fraud and fraud control has taught us that even the nicest of people only needs a reason to commit fraud and given an opportunity, they would go for it, making now to be the best time to initiate or at least look into fraud prevention options, such as data analytics.
The Future of Fraud Control
In 2009, the professional standards for fraud detection and prevention for auditors was updated, and that was done as a response to the ever changing technological advancements that we are having. These days, both examiners and fraudsters are equipped with technological tools, meaning that the only way to beat fraudsters is to be one step ahead of them. That’s where data analytics comes in for fraud control. Let’s just say that data analytics is the modern survival strategy for tech-savvy companies.
But what really can companies get out of data analytics for it to be hailed as today’s key component in combating fraud? Nowadays, data is exponentially increasing on a daily basis, making ad hoc analyses and sampling as sort of obsolete as far as solutions goes. A great data analytic software can be used to monitor whatever amount of data efficiently, be it in a continuous basis or routine basis. This means that it is more effective in isolating and identifying patterns that can indicate fraud. Imagine having your daily data capturing and analyzation done near effortlessly with automation; wouldn’t that be fantastic?
Here’s another benefit of using data analytics software: Clever fraudsters will find ways to subvert internal audit controls, no matter how good those controls are; however, data analytics can detect the slightest deviation from normal and alert you as soon as it happens. It can even be set-up in such a way that it would watch the internal controls itself!
Thinking of a cost-effective way to combat fraud? Here’s your answer! It is only a matter of time before everything goes digital. The only guaranteed thing when it comes to data these days is the fact that it will continue to evolve, and be more digitized. The beauty of this is that once all your data has been organized, it will be much easier to detect patterns of fraud at a very low cost. Bonus part? You can get reports on demand too!