Institutions Increasingly Rely on IT Solutions to Combat Fraud
Combating Fraud: A Growing Trend
A recent study has revealed a significant increase in the number of institutions implementing various methods to prevent and detect fraud. The study found that, on average, 14 out of 17 anti-fraud methods were used by surveyed institutions in the past year, up from 12 methods used in the previous study.
No Correlation between Effectiveness and Frequency
Interestingly, the study discovered that there is no correlation between the assessed effectiveness of a method and its frequency of use. For example, verification of documents by employees and written procedures, which were rated as relatively less effective, are still used by 100% of respondents.
IT Solutions Play a Key Role
In addition to traditional anti-fraud methods, institutions are increasingly relying on IT solutions to prevent and detect fraud. The study found that over 90% of respondents indicated that their institution uses IT tools dedicated to fighting fraud, with 3 out of 4 surveyed institutions using solutions designed to detect potential fraud.
Modern Anti-Fraud Systems
The study also revealed that institutions are more likely to use modern, comprehensive anti-fraud systems incorporating a variety of analytical techniques such as:
- Text mining
- Integrated interface
- Predictive models
- Geospatial analysis
These techniques were used by 34% of respondents, up from slightly over half in the previous study.
Most Effective IT Tool: Analysis of Networks and Tools
According to the survey results, the most effective IT tool for combating fraud is the analysis of networks and tools used to detect anomalies, which are used by 66% of respondents. The use of analytical techniques in fraud prevention programs was found to have numerous benefits, including:
- Early identification of fraud
- Increased transparency of business operations
Study Conclusion
The study suggests that institutions are increasingly recognizing the importance of implementing mature, complex anti-fraud systems based on various analytical techniques. As a result, there is a higher correlation between the popularity and assessment of effectiveness of individual tools, indicating a higher share of institutions that implement effective anti-fraud measures.
Overall Findings
Overall, the study highlights the growing trend among institutions to rely on IT solutions and analytical techniques to combat fraud, and the benefits that come with these efforts.