Solutions for Checking Frauds

Identifying frauds and minimizing tax evasions thus resulting in higher revenue collections has made governments and corporates realize the importance and use of technology aids in this avenue. One identified aid is the use of customer-centric data analytics. In this respect, several technology and consulting companies are coming together to derive frameworks that can largely be put into use to as simple tasks as reducing processing times for claims, refunds, etc or even complications such as unearthing fraud patterns, detect potential crimes such as evasions, improper payments etc.

In India, EMC for example, has unveiled the EMC Documentum xCP Saksham eGov Case Management to facilitate easy electronic delivery of service by automating operations of government departments and public sector agencies in India. The Saksham solution is a case management and file tracking solution which automates processes through an easily configurable web based user interface. It can be used for digitalizing tax process, issuing driver license, visa and passports, criminal justice matters, etc. This is however amongst the first steps that can be taken in this respect.

While SAS has developed a powerful analytics based technology - SAS Fraud Framework - that helps government agencies in many areas right from detecting suspicious patterns in social programs, uncovering tax evasion to identifying sophisticated frauds. According to SAS, this technology will help tax agencies reduce the gap between revenues owed and collected, either erroneously or by fraud while social welfare agencies will see cost savings by reducing erroneous or fraudulent payments. Capgemini has collaborated with SAS in the public sector also after a number of successful fraud and risk management projects in financial services, executed with Capgemini's Business Information Management (BIM) Global Service Line.

In fact the two have collaborated upon projects such as strategic risking analytics solutions used by HM Revenue & Customs, the UK tax authority to tackle fraud and manage debt, implementing a SAS business intelligence and analytics solution for the Maharashtra Sales Tax Department (MSTD) in India, etc.

Deloitte, on the other hand, emphasizes on the use of technology in form of computer forensic analysis, data analytics, and conducting interviews for its fraud investigations. Since most companies rely on maintaining data electronically and commit only one-third of it on paper, major portion of the investigations depends on careful searches of the electronic information.

The consulting major advocates the use of computer forensics using sophisticated tools and laboratories, which helps fraud investigators uncover more facts, support unsubstantiated information, clear allegations, and analyze all possible theories. The process thus involves identifying, collecting, analyzing large numbers of data. But the data would be admissible legally only when correctly presented or coded.

In fact, electronic evidence would pertain not just to data in mobile devices, laptops, databases and network computers, but also offsite files, servers, data centers, etc. Other evidence could be gathered through conducting interviews with the suspected perpetrators or other potential witnesses.

Deloitte also suggests use of software in companies almost regularly to analyze the data for anomalies that could indicate fraud or error, and pass alerts to its investigation management unit.