Vincent M. Walden, CFE, CPA
Vincent M. Walden, CFE, CPA, is the CEO of Kona AI, whose company mission is to empower compliance, audit, and investigative professionals with research-driven, innovative, and effective analytics to measurably reduce global fraud, corruption and enterprise risk. He works closely with CFEs, internal auditors, compliance, audit, legal, and finance professionals and welcomes your feedback and ideas.
The seven wonders of fraud detection analytics
Fraud is constantly evolving. So too should our technologies for detecting and preventing it. Inspired by the Seven Wonders of the World, I present my seven favorite anti-fraud techniques. Some have been in use for over a decade, some are new and evolving — but all of them are “wonderful.”
Written By: Vincent M. Walden, CFE, CPA
Fraud Triangle Analytics, 12 years later
It’s been over a decade since we examined Fraud Triangle Analytics, a method of risk ranking individuals by applying keywords for pressure, opportunity and rationalization to electronic communications. Here we look at how advancements in technology have helped improve FTA in today’s battles with tech-savvy fraudsters.
Written By: Vincent M. Walden, CFE, CPA
Using technology-assisted review to uncover suspicious transactions
Technology-assisted review (TAR) has been used for nearly two decades in e-discovery matters to reduce costs, increase efficiencies and speed up the often-tedious task of manually reviewing emails and user documents for relevance. Fraud examiners can also use TAR techniques (with some guard rails) to find potentially improper payments (PIPs) or transactions in structured data.
Written By: Vincent M. Walden, CFE, CPA
Profile of an improper (corrupt) payment
What are the telltale signs of an improper payment? Here we explore the leading research into what can be measured and observed to find common patterns and profiles around improper, and sometimes corrupt, payments.
Written By: Vincent M. Walden, CFE, CPA
Who owns transaction and controls monitoring?
Who monitors and oversees high-risk transactions in your organization? In this article, I explore who owns transaction and controls monitoring for vendors, customers and employees.
Written By: Vincent M. Walden, CFE, CPA
Build it right, and they will come
Today’s world is fraught with geopolitical sanctions, fraud, corruption and cyber warfare, and fueled by rapidly emerging technologies that continue to change how we approach business and risk mitigation. Companies large and small are enduring a costly, but necessary, shift to digital, while transitioning operations to the cloud and scrambling to protect their systems from intrusion. With change comes risks, which is why companies often look to anti-fraud and/or forensic technology professionals to help them build the preventive and detective anti-fraud controls needed to protect their business and align with regulatory expectations.
Written By: Vincent M. Walden, CFE, CPA
Building an AI-focused anti-fraud company
Artificial intelligence (AI) is changing how businesses run — especially in anti-fraud and compliance. Here we describe how to build an AI-focused, anti-fraud technology company and what mindsets, strategies and tactics work well for organizations and entrepreneurs.
Written By: Vincent M. Walden, CFE, CPA
Future of fraud in a blockchain world
You can’t escape blockchain. The topic’s in the media daily. It’s at the forefront of digital disruption and innovation discussions among leading businesses. We’ve seen blockchain technology applications in banking, currencies, supply chain, contracts and dozens of other areas.
Written By: Vincent M. Walden, CFE, CPA
Conduct data-driven investigations of suspicious employment claims during pandemic
Bad actors don’t let a good crisis go to waste. Shifting of governmental department of health mandates and the absence of systems to capture evidence of compliance have contributed to a perfect storm of fraudulent employment claims during the pandemic. But you can still find hard data to drive your investigations and defense strategies.
Written By: Vincent M. Walden, CFE, CPA
Avoiding bias in your fraud risk management program
Complex business environments require fraud examiners to have diverse skills and holistic points of view to properly address the plethora of business risks. Escape your biases. Consider multiple sets of guidance to stay apprised to increase business transparency and dismantle silos of information.
Written By: Vincent M. Walden, CFE, CPA
Igniting anti-fraud research via ACFE Foundation
On March 14, the Institute of Fraud Prevention (IFP) merged with the ACFE Foundation, which expanded the Foundation’s mission beyond college scholarships to cutting-edge, anti-fraud research that’s accessible to all CFEs. The IFP will now be known as the ACFE Research Institute. ACFE members and other anti-fraud professionals are the beneficiaries.
Written By: John Warren, J.D., CFE, Vincent M. Walden, CFE, CPA
Accelerating anti-fraud innovation
As your fraud risk landscape changes, so does the need to adapt and innovate. We explore how organizations are “operationalizing” anti-fraud innovation and continuous improvement.
Written By: Vincent M. Walden, CFE, CPA, Eric Johnson
Game-changing digital background checks and asset searches
Fraud examiners understand the importance of knowing whom you’re doing business with. From compliance and due diligence to investigative asset tracing, solid background-checking skills are key tools for CFEs. But beyond traditional methods, new techniques are emerging to greatly enhance business transparency — and some may surprise you.
Written By: Vincent M. Walden, CFE, CPA
Are data-sharing consortiums the future of anti-fraud?
More organizations are collaborating with data-sharing consortiums to safely exchange fraud risk profile information that could improve their internal prevention and detection activities. Here’s an interview with Matt Galvin, global VP of ethics and compliance at Anheuser-Busch (AB) InBev, who discusses how cross-company collaboration might affect the anti-fraud profession.
Written By: Vincent M. Walden, CFE, CPA
Does your fraud risk management program actually work, in practice?
Global anti-fraud and compliance enforcement is on the rise, and regulators want proof that fraud risk management programs are effective. Here we look at some of the hard questions organizations need to ask and some examples of how companies have updated their systems to tackle fraud in the post-COVID environment.
Written By: Vincent M. Walden, CFE, CPA
Using geospatial tracking to shut down sanctions violators
The line between corporate crime and geopolitics has become increasingly blurred as the U.S. sanctions a broad range of bad actors across the globe. Organizations can quickly find themselves in violation of these rules. Here’s how fraud examiners can use one type of technology to prevent this fraudulent behavior.
Written By: Vincent M. Walden, CFE, CPA
Mind blowing
Understanding ChatGPT and similar generative AI tools is critical for fraud examiners seeking to leverage this emerging technology. Here we explore the risks and the extraordinary potential of this new phenomenon.
Written By: Vincent M. Walden, CFE, CPA
From many, comes one (algorithm)
Recent anticorruption research shows that when companies collaborate to share information about third-party payments and high-risk transactions, they have a 25% greater chance of predicting improper payments than when each company’s model is performed in isolation. A new data-sharing consortium led by a nonprofit at MIT is working to make such collaboration possible.
Written By: Vincent M. Walden, CFE, CPA
Measure and monitor your fraud risk management program success
‘Tis the season to set company goals. As we wrap up 2023 and look to the new year, ponder this: What are some of the key performance indicators (KPIs) companies use to measure the effectiveness of their fraud risk management program? Here, we explore some leading examples of anti-fraud KPIs that drive business value.
Written By: Vincent M. Walden, CFE, CPA
Monitoring and investigating human rights risk in the supply chain
Forced labor, an unfortunate reality in much of the world, may lie hidden (or in plain sight) in companies’ supply chains. Governments are taking notice, and CFEs have a key role to play in combating the problem.
Written By: Vincent M. Walden, CFE, CPA
Revisiting Benford’s Law with added AI horsepower
For over a decade, CFEs, auditors and analysts have used Benford’s Law to identify journal entry irregularities. Today, this analysis method remains relevant as ever as new applications using AI and simulation could bring Benford’s Law to the forefront of your fraud risk management controls.
Written By: Vincent M. Walden, CFE, CPA
Breaking down data silos
The better the data, the better the insight. The better the insight, the better the results. In this issue, we explore how CFEs can help their organizations break down data silos to improve business transparency.
Written By: Vincent M. Walden, CFE, CPA
Can generative AI give us prescriptive analytics?
One of four key types of analytics has long been considered a “pie-in-the-sky” concept for fraud investigators. Rather than describing or diagnosing something that’s happened or predicting what could happen, prescriptive analytics can tell us what we should do about it. With the growth of generative AI and large language models, it may just be in reach.
Written By: Vincent M. Walden, CFE, CPA
Fraud considerations for internal audits: The CFE perspective
In 2022, the Association of Certified Fraud Examiners (ACFE) and the Institute of Internal Auditors (IIA) announced a partnership that sought to collaborate on “education initiatives that will raise the competency of each organizations’ members with regard to fraud auditing and investigation.” As I reflected on this announcement, it struck me that both internal auditors and anti-fraud professionals strive to protect the organizations they serve, and though the primary focus may be different, the opportunities to collaborate are indeed vast.
Written By: Vincent M. Walden, CFE, CPA
Noncompliance with laws and regulations – CFEs’ elevated audit role under proposed PCAOB rules
CFEs, lawyers and auditors – be on alert! The proposed PCAOB’s amendments to its auditing standards related to an auditor’s consideration of a company’s noncompliance with laws and regulations about financial statement audits will have a profound impact on our profession, bringing fraud risk management front and center.
Written By: Vincent M. Walden, CFE, CPA
Insights without exposure
How should fraud examiners and legal professionals meet compliance standards but also keep individuals’ and organizations’ data private? “Differential privacy” is a system of cybersecurity that proponents claim can protect data far better than traditional sanitizing or anonymizing methods.
Written By: Vincent M. Walden, CFE, CPA
Demystifying AI in anti-fraud and compliance efforts
Artificial intelligence and machine learning seem to be included in most technology discussions. But what do these potential technologies really mean for fraud examiners and compliance professionals?
Written By: Vincent M. Walden, CFE, CPA
DOJ asks, ‘Can you show your compliance and anti-fraud program actually works?’
The U.S. Department of Justice (DOJ) recently updated its “Evaluation of Corporate Compliance Programs,” the primary guidance for DOJ prosecutors when they assess penalties. These updates provide insights into the factors DOJ is likely to emphasize when it evaluates the effectiveness of your organization’s compliance program — should you come under scrutiny.
Written By: Vincent M. Walden, CFE, CPA
Forensically preserving electronic evidence during a lockdown
During the COVID-19 lockdowns, how did fraud examiners manage evidence collection? Learn from forensic technology industry experts about collecting custodian information and remote data preservation.
Written By: Vincent M. Walden, CFE, CPA
Prevent procurement ‘leakages’ and save precious working capital
Given the current economic climate and regulatory expectations, monitoring procurement spending for fraud, waste and abuse (aka “leakage”) is even more important. We can proactively monitor procurement data via big data analytics, which will reveal transactions that are fraudulent or diminish working capital.
Written By: Vincent M. Walden, CFE, CPA
Cyber incidents
As cyber incidents become more complex, your organization’s ability to perform sufficient investigations must adapt. We explore pitfalls that businesses commonly struggle with as they deal with cyber incidents.
Written By: Shawn Fohs, CISM, Chip Guy, CFE, Vincent M. Walden, CFE, CPA
Avoiding the DOJ's red flags of collusion
The U.S. Department of Justice appears to have collusion in its crosshairs with its formation of a procurement and collusion strike force. Here are typical schemes and red flags in the context of new DOJ guidance.
Written By: Vincent M. Walden, CFE, CPA
Escape the analytics software 'black box'
New developments in forensic data analytics are breaking down traditional barriers to access, transparency and usability. You don’t need an advanced degree to use “data blending” software.
Written By: Vincent M. Walden, CFE, CPA
Is a U.K. version of SOX compliance on the horizon?
The U.S. Sarbanes-Oxley Act of 2002 mandated strict reforms to existing securities regulations and imposed tough new penalties on lawbreakers. The U.K. might soon adopt similar legislation, which could significantly change board responsibility for fraud risk management and increase demand for anti-fraud professionals.
Written By: Vincent M. Walden, CFE, CPA
Place 'ESG' on your radar
Organizations are increasingly striving to meet environmental, social and governance (ESG) standards, at least on paper. CFEs may be well versed in the “G” of ESG but they also need to know about the “E” and “S” to understand whether CEOs are truly sticking to the values they tout.
Written By: Vincent M. Walden, CFE, CPA
Keeping with the times
The Fraud Risk Management Guide has provided valuable guidance to fraud examiners, company leaders and other professionals since it was published five years ago. Now, the Committee of Sponsoring Organizations of the Treadway Commission and the ACFE — the guide’s creators — will incorporate users’ feedback to produce a stronger, updated edition.
Written By: Vincent M. Walden, CFE, CPA
‘Machine learning’ fights fraud behind cash registers
A global “quick-service” (i.e., minimal table service) restaurant business with thousands of locations accelerated its employee theft-and-error detection rate at the cash register by approximately threefold. Enhancements included the risk analysis of geographic regions, stores, employees and point-of sale (POS) transactions plus integrating “machine learning” for improved fraud detection.
Written By: Vincent M. Walden, CFE, CPA
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