Fraud examiners have a plethora of data analytics tools

Data analytics techniques play a crucial role in fraud prevention, detection and investigation. According to the 2020 Report to the Nations (ACFE.com/RTTN), proactive data monitoring and analysis are among the most effective anti-fraud controls. Organizations that undertake proactive data analysis techniques experience frauds that are 33% less costly and detect frauds 1.5 times as quickly as organizations that don’t monitor and analyze data for signs of fraud. And as stated in the 2022 ACFE Fraud Examiners Manual, “When properly used, data analysis processes and techniques are powerful resources for uncovering fraud. They can systematically identify red flags and perform predictive modeling, detecting a fraudulent situation long before many traditional fraud investigation techniques would be able to do so.” (See ACFE.com/FEM, Section 3: Investigation/Understanding the Need for Data Analysis.)