Download Forensic Data Analysis

Forensic Data
Analysis
Making more than something out
of apparently less than nothing
How do you overcome the cost
of reviewing a large volume
of transactions – or the likely
error introduced by reviewing
only a cost effective sample?
How would you link together
related entities in an
investigation when all you
have is a mess of misaligned
dates or identifiers that don’t
seem to match?
When tweaking a complex
set of controls becomes too
much to manage and their
optimisation seem impossible
who would you turn to?
We can help.
Forensic Data Analysis techniques are
used to proactively seek opportunities
to prevent and detect fraud, waste and
abuse by leveraging the knowledge found
within corporate data assets. Our success
is achieved by combining deep forensic
investigation knowledge with advanced
analytical techniques such as investigative
data linking, social network analysis,
artificial intelligence and predictive
modelling.
Forensic Data Analysis –
capability landscape
Our solutions can stand alone or be used
to support complementary EY practices
such as investigations, disputes, transaction
advisory, contract risk and due diligence.
We address issues which are fundamental
to all sectors, such as reducing error, waste
and abuse within purchasing systems. We
are also experienced at addressing sectorspecific risks, such as insurance claims fraud
and price-fixing, as summarised below:
Sector risks Regulation and compliance
Consolidation/transition
Global financial shocks
Energy shocks
Aging population
Strategic transactions
Emerging markets
Our solution Cross-sector solutions
FS and insurance
areas ►► Retrospective lookback
►► Mortgage, cheque
(example ►► Continuous monitoring
►► Card, faster payments
sectors) ►► Financial statement fraud
►► Analytical tuning
►► Investigations support
►► Market abuse
►► Disputes support
►► Fraudulent claims
Our Capability frameworks
Delivery frameworks
analytical Industry maturity models
Fraud scheme rule sets
enablers
Our Reporting
Supervised
Unsupervised
analytical ►► Basic reporting ►► Classification ►► Association rules
operations ►► MI frameworks
►► Prediction
►► Clustering
Our Pre-Processing
Content mining
Dimension reduction
analytical ►► Sampling
►► Text mining
►► Principal
techniques ►► Cleansing
►► Web mining
components
►► Aggregation
►► Audio mining ►► Factor analysis
►► Transformation
►► Summarisation
Our Best in class applications
Analytical suites
analytical ►► Oversight for transaction
►► SAS
environment
monitoring
►► SQL*server 2005
►► Tableau for query and
►► i2 analyst notebook
reporting
►► Discipulus genetic
programming
Cost inflation
Radical greening
Consumer demand shifts
Network analysis
►► Investigative data linking
►► Social network analysis
►► Graph mining
Concept mapping
►► Hierarchy generation
►► Concept clustering
►► Summarisation
We map global
strategic risks issues
to our solution
offerings
Solutions range
from complete
service offerings to
bespoke analytical
implementations for
specific issues
Delivery is underpinned
by mature knowledge
frameworks
A comprehensive
suite of analytical
capabilities support
in-depth solutions
Diverse experience
allows us to integrate
at multiple levels of the
EY solution hierarchy
Bespoke toolsets
►► Bayesian belief networks
►► Social network analysis
►► Weka, Python
Our world-class
environment delivers
robustness and
repeatability
Telecommunications
►► Subscription, pre-paid
►► Premium rate, roaming
►► Cloning, calling cards
►► Internal fraud
Standard data models
Insight libraries
Our solutions are under-pinned by a range
of analytical enablers which embody our
industry, sector and delivery expertise.
Analytical operations are used to build an
analytical solution or to integrate analysis
into a broader investigation or litigation
solution. Our analytical techniques and
environment have been designed to ensure
we employ leading edge techniques whilst
retaining our flexibility and agility.
Supporting practical business
decision making
“Most sudden deaths are of cardiac
origin”1 The role of the forensic
technologist is to get to the heart of
the organisation
Making the invisible visible
Forensic Data Analysis provides the
ability to spot patterns or trends in data
that are invisible to the naked eye. This is
achieved by using techniques which ‘draw
out’ or format data so that the previously
invisible patterns become visible – and can
therefore be exploited.
Clustering techniques allow us to create
groupings of similar entities or behaviours.
For example, we can navigate our way
through a fraudster’s communications
history by associating burglaries with
known offenders or documents within a
collection of emails.
When we have a network of relationships
between connected entities, we use
investigative linkage techniques and social
network analysis. From these we
1
All quotations taken or adapted from: ‘Anil Aggrawal’s page
of Forensic Quotes: Forensic quotes starting with F’
(http://anil2970.tripod.com/f001.html)
can create graphs of connections which
highlight suspect or potentially fraudulent
behaviours.
The act of foretelling
Forensic Data Analysis can also be applied
to see into the future. By building on an
understanding of historical information
we can use predictive or classification
techniques to determine the likelihood
of a future event occurring. For example,
the chance of a particular control being
exploited, or of an organisation being
prosecuted given their response to a
particular regulatory scheme.
Where we have evidential experience we
can use Bayesian probability to determine
whether an event, for example the
assignment of an invoice of a particular
size to a known code, occurs more (or less)
frequently than we would expect. Time
series forecasting is used to project future
values of a continuous variable (such as
spend) when we have a reliable history
from which we can project.
Seeing the wood for the trees
Sometimes, the art of data analysis comes
down to nothing more than simplifying
or reshaping data. By summarising data
we can provide views which highlight the
pertinent patterns. By cleansing we can
remove outlying values or random events
which can obscure the material behaviours
being represented. By transforming
data into a more meaningful form we
make it amenable to the lay-person. By
creating derived variables we can highlight
relationships between data items that may
otherwise remain hidden.
Expertise all the way down
“There is only one path to the mastery
of Forensic Technology, and that is an
extensive practical experience”1
Methodology and mindset
“Many people ask me why I chose forensic
technology as a career, and I tell them
that it is because a forensic man gets
the honour of being called when the top
analysts have failed!”1
Core to our success is our forensic
approach. We ensure that each decision
builds upon previous experience and
feeds documentation to support future
engagements.
Our analysts’ ability to understand how
data relates to real-world fraud schemes
means they are able to enrich, augment
and shape data so that salient patterns can
be exposed.
Our delivery methodologies build
upon industry-standard analytical
methodologies and instil quality and
robustness in everything we do.
How we engage with you
We combine thought leadership with a
strong delivery capability. Examples of
our work include performing a fraud-risk
assessment of a business function to
provide recommendations for process
improvement and demonstrating the valueadd of forensic data analysis with a proof of
concept exercise on an historic dataset.
Our experience
Here is an example of how we help our
clients reduce error, waste and abuse:
A major UK client was concerned over
potential duplicate payments and fraud
within their accounts payable system. We
analysed over £450m worth of invoices
from a ten month window. Our analysis,
delivered in less than six weeks, identified
over £2m of transactions worthy of review.
The cash recovery opportunity delivered
was significantly higher than our fees.
Our sector and analytical maturity allows
us to quickly ascertain where analysis can
contribute to a client solution.
Ernst & Young contacts
Many years of hands-on delivery allow us to
codify our expertise in domain libraries and
to deliver robust results quickly.
+44 (0)20 7951 6935
[email protected]
The broad range of analytical software we
utilise underpins our flexibility and agility.
Our Advanced Solution Centre provides a
world class infrastructure that allows us to
configure complex platforms within hours.
1
All quotations taken or adapted from: ‘Anil Aggrawal’s page
of Forensic Quotes: Forensic quotes starting with F’
(http://anil2970.tripod.com/f001.html)
Paul Walker, Partner, Head of Forensic
Technology and Discovery Services
Sanjay Bhandari, Partner, Head of Evidence
and Disclosure Management
+44 (0)20 7951 8370
[email protected]
Nicolas Mallison, Director
+44 (0)20 7951 2750
[email protected]
Gavin Meggs, Assistant Director
+44 (0)20 7951 5954
[email protected]
Ernst & Young
Assurance | Tax | Transactions | Advisory
About Ernst & Young
Ernst & Young is a global leader in
assurance, tax, transaction and advisory
services. Worldwide, our 130,000 people
are united by our shared values and an
unwavering commitment to quality. We
make a difference by helping our people,
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achieve potential.
About Ernst & Young’s Fraud
Investigation & Dispute Services
Fraud, unethical conduct and commercial
disputes may present major reputational
and financial risks to your business, as
well as detracting from your company’s
efforts to achieve its potential. We offer
forensic and IT skills, knowledge, tools and
methodologies to conduct investigations
and help resolve disputes quickly,
effectively and globally with minimal
impact on “business as usual.” Better
management of fraud risk and compliance
exposure is a critical business priority - no
matter the industry sector. Working closely
with you and your legal advisors, we bring
an objective approach to these sensitive
and contentious situations. It’s how
Ernst & Young makes a difference.
For more information, please visit
www.ey.com/fids.
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member firms of Ernst & Young Global Limited, each of
which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not
provide services to clients.
© 2008 EYGM Limited.
All Rights Reserved.
EYG no. XX0000
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