Why annual reviews are failing and how continuous streaming analytics can stop fraud before it happens.
In our series on Fraud Trends for The Future, one concept identified as becoming more and more important is the need for real-time fraud risk assessments. But what does that really mean?
Most are comfortable and aware of the term risk assessment. A fraud risk assessment is aimed at proactively addressing a business's vulnerabilities to internal and external fraud. This includes:
But the concept of a risk assessment typically implies a process that is conducted on a periodic basis.
Real-time fraud detection varies from your periodic fraud risk assessment. It is the real-time execution of fraud-detection algorithms to detect fraudulent activities in real time (on credit cards and other financial payment systems as well as operational activities). It makes use of real-time data analysis such as forensic analytics and predictive analytics to determine if an ongoing transaction is legitimate or not.
Studies have shown the system has reduced fraud losses in the U.S. by 70% since 1992, when real-time fraud detection was introduced.
This course will delve further into the elements that comprise a real-time fraud risk assessment or detection process.
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
