IBM has launched new software and consulting services to help organizations leverage the benefits of big data and analytics to address fraud and financial crimes.
According to reports, over $3.5 trillion is lost each year to fraud and financial crimes associated with several industries. With sophisticated business expertise and analytics, organizations can address these challenges, IBM said.
IBM’s smarter counter fraud initiative draws on the expertise and innovation from more than 500 fraud consulting experts, 290 fraud-related research patents and $24 billion invested in IBM’s Big Data and Analytics software and services capabilities since 2005.
Identity fraud has impacted more than 12 million individuals in 2012, resulting in theft of nearly $21 billion. Reports indicate that each day the U.S. healthcare industry loses $650 million due to fraudulent claims and payments.
Considering the damage such frauds can bring to organizations, decision makers should have taken appropriate measures to prevent them.
In fact Gartner recently stated that 25 percent of large global companies will have adopted big data analytics for at least one security or fraud detection use case, up from eight percent today, and will achieve a positive return on investment within the first six months of implementation by 2016.
Meanwhile IDC estimates that the market for Financial Crime solutions alone will be nearly $4.7 billion in 2014, with a 5.5 percent CAGR over the 2014-2017 forecast period.
The new software allows organizations to gain better visibility and take a more proactive, holistic approach to countering fraud. This includes the ability to aggregate Big Data across a variety of internal and external sources – including mobile, social and online – and apply sophisticated analytics that continuously monitor for fraudulent indicators.
IBM’s new counter fraud portfolio consists of Counter Fraud Management Software, Counter fraud service offerings, Outcome-based Accelerators, Target Operating Model, Scale and Manage features, Fraud discovery assets, Medical Fraud, Insurance Claim Fraud, Public Tax Fraud, Occupational Fraud, and Counter fraud as a service.
The new offerings feature advanced analytics that understand non-obvious relationships and co-occurrences between entities, new enhanced visualization technologies that can identify and connect fraudulent patterns closer to point of operation, and machine learning to help prevent future occurrence based on previous attacks and behaviors, IBM said.
Robert Griffin, vice president, IBM Counter Fraud Solutions, said, “These technologies allow line of business leaders to quickly adapt to emerging threats across the entire organization. Our new initiative puts Big Data and Analytics into the hands of those tasked with defending their organizations from financial losses, protecting the brand and delivering exceptional customer service.”