Financial Crime World

Unraveling the World of Financial Crimes: Insight into the Unlawful Obtaining of Wealth

Financial crimes, a lurking shadow in the economic landscape, refer to a broad range of unlawful activities perpetrated for the illicit acquisition of money, services, or property. Despite the diverse forms they take and the entities they involve, financial crimes are united by one common thread: deception and the subsequent exploitation of the proceeds.

Perpetrators of Financial Crimes

The perpetrators of financial crimes can range from individual criminals to corporations and organized crime groups. With the global economy serving as their playground, financial crimes are reported to occur in virtually every corner of the world.

Common Examples of Financial Crimes

  1. Medical and Insurance Fraud
  2. Money Laundering
  3. Bank Fraud

Combating Financial Crimes with IBM Financial Crimes Insight

To effectively combat financial crimes in the insurance and banking sectors, IBM Corporation offers a robust solution called Financial Crimes Insight. This strategic framework is designed to deter, prevent, and intercept various forms of financial crimes.

Capabilities of Financial Crimes Insight

  1. IBM Financial Crimes Insight for Claims Fraud

    This offering is geared towards the detection, prevention, and interception of multiple types of insurance fraud. It empowers financial institutions to:

    • Streamline detection processes
    • Speed investigations
    • Ensure faster claims resolution for customers

  2. IBM Financial Crimes Insight for Entity Research

    By streamlining and automating Know Your Customer (KYC) and customer due diligence (CDD) processes, this capability enhances the customer experience throughout the customer lifecycle. It enables financial institutions to:

    • Augment their existing systems
    • Take advantage of modern AI capabilities
    • Achieve a faster time to value

  3. IBM Financial Crimes Insight for Conduct Surveillance

    This feature proactively monitors employee activity by analyzing vast volumes of data derived from various channels, such as emails, social media, chat transcripts, voice transcripts, and customer complaints. Beyond traditional rules-based alert detection, it uses pre-built models to address areas like conduct risk, client suitability, and complaints.

  4. IBM Financial Crimes Insight for Alert Triage

    By augmenting existing AML transaction monitoring and sanctions screening systems with AI, advanced analytics, automation, and machine learning capabilities, this offering assists financial institutions in reducing false positives and prioritizing higher risk alerts. This results in:

    • Operational cost savings
    • Enhanced prediction accuracy

The IBM Financial Crimes Insight framework plays a crucial role in the financial industry, helping institutions stay one step ahead of financial criminals and maintain trust with their customers.