Financial Crime World

Fraud Prevention Methods for Businesses in Poland Gain Momentum

Warsaw, Poland

As businesses in Poland continue to face the threat of financial losses due to fraud, professional services firms are developing innovative approaches to detect and prevent such incidents. In this article, we will explore KPMG in Poland’s comprehensive approach to detecting potential fraud with an emphasis on its economic aspect.

A Comprehensive Approach to Detecting Fraud

KPMG in Poland’s actuarial team has created a process that assesses the risk of fraud by analyzing various data sets and identifying irregularities. This approach involves:

  • Descriptive Analysis: Understanding the type of data available, including customer segmentation, community, and predictive analysis.
  • Predictive Modeling: Using machine learning methods to identify patterns based on historical and external data.
  • Flagging Damages: Identifying potential damages depending on their characteristics.
  • Model Assessment: Evaluating the quality of the model by determining its prediction performance.

The Role of Benford’s Law in Fraud Detection

Benford’s Law, developed by physicist Frank Benford, examines the frequency of the first digit in numbers to detect potential manipulation or data tampering. While this law can help identify suspicious data, it is not foolproof and may not catch all cases of fraud.

A Holistic Approach to Fraud Prevention

KPMG’s comprehensive approach considers every aspect of an organization at risk of fraud, including its specifics and current legislation. This involves:

  • Understanding the Organization: Identifying areas at risk and implementing dynamic processes to respond effectively to fraud challenges.
  • Current Legislation: Taking into account aspects specific to the organization and current legislation.
  • Model Calibration: Testing the fraud model’s stability and calibration.

Conclusion

The increasing concern over economic losses due to fraud has prompted businesses in Poland to adopt more effective fraud prevention methods. KPMG’s comprehensive approach offers a robust solution for detecting potential fraud and mitigating financial losses. By adopting a holistic approach, organizations can effectively prevent and detect fraud, ensuring the integrity of their financial systems.