IBM Launches Counter Fraud Effort With New Software, Services
Big Blue also announced counter fraud service offerings that combine IBM’s consulting, software and technology expertise to help clients improve their counter fraud programs. And the company is offering a portfolio of customizable, research-developed assets that use analytics to discover fraud, waste, abuse and errors in data intensive industries and functions. These assets analyze an organization’s internal data to measure behavior, and then compare the results within specific peer groups to identify anomalies that indicate suspicious activity. Based on the results, an investigation recommendation is made. The assets are available across industries for enterprisewide discovery. The fraud discovery assets will be available in the cloud, enabled by IBM Softlayer. The assets will focus on the following areas: · Medical Fraud: Discovers fraud during provider, beneficiary and internal employee profiling using IBM's Fraud Asset Management System (FAMS). · Insurance Claim Fraud: Enables insurers to detect suspicious activity for claims submitted by vendors, brokers and individuals using IBM's Loss Analysis and Warning System (LAWS).· Occupational Fraud: Helps organizations discover fraud for accounts payable, travel and expense claim, and other frauds committed by employees. In addition, IBM will offer four levels of counter fraud capabilities as a service--including hosting, application management, behavior modeling & scoring and analytics & referral generation--that use a subscription-based model to give clients flexible choices that match their business needs and technical requirements. IBM's Counter Fraud Center of Competency gives clients global access to expertise including fraud industry experts, advanced analytic capabilities and technical implementation services. IBM has a long history working with hundreds of counter-fraud clients such as the London Borough of Camden in the UK, which is using IBM Big Data and Analytics technology to streamline processes, improve services, reduce tax fraud and increase revenue. Working with IBM, Camden has been able to create a "Residents' Index," uniting information from multiple services to create a single, consistent view of all resident data, including the services they're accessing. “Information we once considered unobtainable is now within our grasp," said Hilary Simpson, head of ICT Business Partnering at London Borough of Camden, in a statement. "We have identified at least a dozen specific examples where a Residents’ Index, based on IBM Big Data and Analytics technology, can help us. We have estimated that the solution could help to cut single person council tax discount fraud by five percent, potentially delivering major savings for our borough.” Meanwhile, “Companies are used to taking some percentage of fraudulent activities as a cost of doing business,” Griffin told eWEEK. “But if we can reduce that by some percentage, that number will go straight to our client’s bottom line.” Though only now being announced, the IBM counter-fraud solutions have been used in several proof of concept projects for customers, with “outstanding results,” Griffin said. A next step for the technology will be for IBM to deliver a cognitive element to its counter-fraud offerings. “Right now, we have aspects that feed into Watson, but we are not using Watson as an engine for this as of now,” Griffin said. “However, I’m a strong believer that cognitive will take a place in all the areas we cover.”
· Public Tax Fraud: Empowers governments to address tax gaps by uncovering tax evasion activities and filing inaccuracies using IBM's Tax and Audit Compliance System (TACS).