Fraud Analytics: Strategies and Methods for Detection and Prevention
John Wiley & Sons, Inc.; wiley.com; 176 pages; $50.
This quick read offers an introduction to employing analytic tools to correlate and analyze large amounts of data. This book is an excellent overview of using those tools to discover fraud. The book is not complicated by the overuse of technical terms; it is user friendly. Short and to the point, it is written in plain English, making it accessible to professionals at all levels, even those whose first language is not English.
Case studies support the use of an analytic approach and provide examples of the practical use of the available tools. The author explains why analytic tools and critical thinking skills are needed by fraud examiners to connect the dots and discover red flags that are useful in a proactive approach to preventing or reducing inventory and monetary losses. She discusses how patterns can be used to discover relationships and to “follow the money” during investigations and to build convincing evidence. The author cites the American Association of Fraud Examiners’ 2012 Annual Report to Nations on Occupational Fraud and Abuse to build a convincing case that there are clear and consistent patterns of fraud used around the world and over time. The author identifies various tools that can quickly recognize some of the known patterns and reduce the investigative time needed to discover fraud and abuse-of-position fraudsters.
Fraud Analytics is recommended reading for financial investigators and would be suitable for inclusion in courses on fraud prevention. It deserves a worldwide audience of those interested in fighting abuse and fraud.
Reviewer: James E. Sellers, CPP, served in the Atlanta Police Department’s Fraud Unit, where he was involved with many complex fraud investigations. Since 2004, Sellers has served as a global security advisor and trainer overseas, including security-challenged locations in Africa and the Middle East. He is also currently president and CEO of Accion Security Consulting, LLC. He is a member of ASIS International and sits on the ASIS Security Services Council.