Forensic Data Analytics to Fight Cybercrime, Threats
March 31, 2016
According to Ernst & Young’s Annual 2016 Global Forensic Data Analytics Survey, Shifting into High Gear: Mitigating Risks and Demonstrating Returns, cyber breaches and insider threats is one of the fastest growing fraud risks for companies across various sectors.
The survey, which polled 665 executives from around the globe in nine industries including financial services, life sciences, manufacturing and power and utilities, found that many companies are turning to Forensic Data Analytics (FDA) to help combat the growing list of fraud risks.
In terms of numbers, 77% of respondents said that FDA was used for managing internal fraud like travel and entertainment abuse. Other risks being managed with FDA include cyber breach/insider threat (70%), bribery and corruption risk (68%), financial statement fraud (60%) and money laundering (43%).
The survey also found that 74% of C-suite respondents thought that they need to do more to improve their current anti-fraud procedures, including the use of data analytics tools. The top beneficiaries in the use of forensic data analytics include “executive corporate management”, “internal audit” and the “board”.
Deployment of data analytics tools is growing. The survey found a trend toward higher spending on advanced tools and proactive surveillance monitoring of larger volumes of data from a wider variety of sources. Proactive monitoring is a key driver and at least half of the respondents are investing their budget in this area.
Much education is still needed in regards to the value of data analytics tools. While 79% of respondents said the value was to detect previously undetected fraud and 78% said the value was to detect fraud sooner, only 42% said the value was to reduce the cost of running their anti-fraud program. Another 68% thought they needed to improve management’s awareness of the benefits of data analytics in their anti-fraud programs.
About Andrew Simpson
Andrew Simpson (LinkedIn | Twitter) is Chief Operating Officer at CaseWare RCM and has more than 20 years of experience building businesses in the fields of information systems audit and security, data analytics, Anti-Money Laundering and forensics. He is a regular contributor to conferences and a recognized thought leader in financial crime management.