How to Use Technology to Support Obama's Financial Fraud Enforcement Task Force
Setting precedent at the federal level
The current administration's Financial Fraud Enforcement Task Force is focused on mortgage, corporate and securities fraud, as well as ensuring that all current financial recovery and rescue efforts protect taxpayer investments. The Task Force is also focused on monitoring any discrimination to assure that the financial markets work for all Americans.
The ramifications of the recent financial meltdown are still being felt in the economy. The Task Force is charged with assuring that the underlying fraud and greed that contributed to the deterioration of the financial markets will be monitored and held in check moving forward.
The Task Force has already made some progress in its mission. In June 2010, it completed an operation which targeted mortgage fraudsters throughout the country and was the largest collective enforcement effort ever initiated to confront mortgage fraud. Over a four-month span, the Task Force has brought 1,215 criminal defendants to justice. These defendants were allegedly responsible for more than $2.3 billion in losses. The Task Force has also been able to enforce civil actions that have resulted in the recovery of hundreds of millions of dollars.
The early results have been encouraging. Financial institutions and insurance providers also have to look at their internal controls to help stem the threat of fraud and financial crimes. Many financial organizations have limited visibility across operational silos where there are a large amount of manual processes and multiple detection systems. Investigators and employees may be more knowledgeable about what to look for in suspicious activity, but firms need to take a more holistic approach, including using technology to identify seemingly unrelated risks and prioritizing higher risk activity.