Technology is proving business’ Achilles Heel in the fight against fraud. New research conducted by KPMG reveals that, while a quarter of fraudsters use technology to rip off companies, only 3% of businesses detected illegal behaviour using data analytics. 24% of technology-enabled frauds were caught accidentally, showing that firms are failing to harness new methods of fraud detection.
Alex Plavsic, head of investigations at KPMG in the UK, informed The Paper: “As technology becomes more advanced, so too do the schemes to use it maliciously. While it’s clear that fraudsters are all-too-comfortable using technology to perpetrate a fraud, we’re seeing little evidence that companies are doing the same in response to prevent it. A shockingly small number of firms have invested in threat monitoring systems and data analytics which can sift through data looking for suspicious items and help businesses uncover and question any anomalous behaviour.”
Plavsic continued: “Social media is also an important weapon in the fight against fraud. It needs to be regularly monitored by companies to uncover suspicious behaviour. Fraudsters’ urge to brag, show off assets and reveal their business connections can prove insightful as they unwittingly share too much information online.”