Strategies/Techniques For Building Effective Fraud Management
Listed below are SOME VITAL techniques to address weaknesses in internal controls (i.e., removing the Opportunity element) that can improve your fraud risk management program with better fraud detection and responsive control capabilities.
- Detecting fraud with risk indicators
are “metrics used by organizations to provide an early signal of increasing fraud risk exposures across the organization. And when designing, assessing, or monitoring systems of internal control to limit the risks of fraud, significant value can be derived from incorporating indicators of fraud into systems of control.” Some examples of fraud risk indicators include:
- There are ineffective controls such as inadequate segregation of duties or insufficient data security.
- Transactions are processed by people who would not usually process those transactions.
- Utilizing technology to continuously monitor these fraud risk indicators is a great way to detect fraud proactively.
- ACTIVATION OF continuous control monitoring
MEVISION HOLDINGS MANAGERIAL BOARD have officially recognized Continuous Controls Monitoring as one of a risk management product category, and it is highly recommended for improving your fraud detection capability.
- AUTOMATED artificial intelligence & machine learning.
To combat today’s sophisticated fraud risks, MEVISION HOLDINGS have employed (AI) AND (ML) empowered data analytics to detect inconsistent usage patterns. Tools that use AI and ML can replace the older rules- and signature-based tools to dramatically improve the effectiveness of your fraud prevention, detection, response, and recommendations process. Furthermore, AI & ML can enable continuous (24/7/365) fraud monitoring and real-time reporting.
- Maintain effective internal controls
Internal controls are the foundational enabler of your fraud risk management program. You cannot manage risk
