Fraud Detection Solution

STAR aids businesses and governmental organizations through the latest data analysis technologies and systematically addresses complex and modern fraud and misuse that poses a serious threat to their financial resources and credibility.

The fatal phenomenon of fraud, not only in Iran, but also worldwide, has become one of the concerns of state and governmental organizations and businesses in various industries. Existing data suggests a multi-billion dollar fraud in the global economy. The Association of Certified Fraud Examiners (ACFE) estimated that the world’s total fraud losses for 2013 would be $3.7 trillion. Banks and financial institutions, insurance companies, telecom operators, large manufacturers and retailers are among the companies that annually lose large sums of money from fraud. In addition to financial losses, the occurrence of large-scale fraud in organizations can also undermine the credibility and diminishes public confidence.

On the other hand, fraud methods are in the process of evolution and deformation. Criminals are constantly trying to use new methods to commit fraud in order to hide from the eyes of inspectors of regulatory authorities. Unfortunately, the growth and development of information technology and communication have also helped offenders and have resulted in a greater variety and complex methods of committing fraud. This complexity and constant change has led to the loss of effectiveness of the traditional methods of fraud detection, as well as fixed-laws and even self-learning algorithms that try to discover past patterns of fraud in the organization’s data. Hence, organizations need a new approach to combat today’s fraud and misconduct.

 

How does STAR help?

STAR’s fraud detection takes a human-like approach that can equip inspectors of regulatory authorities with the tools needed to search the organization’s data and discover complex patterns of fraud. In this approach, instead of using fully automated algorithmic processes, a set of algorithms and facilities for processing and searching data in the form of a tool is provided to experts in departments responsible for countering fraud. With the help of these tools, experts can define complex scenarios of fraud events and behavioral patterns that they consider to be suspicious and abnormal for continuous observation in the data. By identifying suspicious behaviors based on scenarios, these are referred to experts for further investigation and the creation and completion of the file in the form of an alert to the experts. At this stage, the analyst can make decisions about suspicious cases using their experience and creativity and utilizing a variety of STAR’s software tools to analyze and search the organization’s data.

 

Integrated search across all the organization’s data

One of the weaknesses of organizations is in the prevention and detection of scattered fraud and the isolation of data sources belonging to the organization. This vulnerability is often abused by offenders and although there are numerous clues about their fraudulent activities in each of the organization’s data sources, but the lack of integrity and the ability to appropriately combine the data in these resources prevents experts from completing the fraud puzzles. STAR, by providing the ability to combine organizational data such as operational transactions, customer database and the organization’s HR database and mapping them into an integrated model, will enable experts to search their clues in integrated organization data in a fully visualized environment and with putting together clues in different sources to neutralize threats to the organization.

 

Fast identification of known patterns in mass data

By detecting a fraudulent behavior pattern in a suspect case, analysts working on the organization’s fraud will be able to quickly search for similar behaviors within the organization’s mass data with the help of STAR’s analytical tool, as well as defining a process for continuous observation and reporting of this behavior with the STAR platform. The graphical user interface and creative environment of STAR will not require experts to be familiar with programming languages to search for patterns and define rules and identification scenarios.

 

Compliance to regulatory lists

A common requirement in the area of prevention of violations, in particular within money laundering and crimes sensitive to governmental regulatory authorities, is the ability to match the organizations consumers with blacklists enlisted by regulatory bodies and or matching the characteristics of actions in progress by the governments chartered agreements. STAR enables fuzzy and real-time compliance of massive operational records of the organization to interact with its audiences by the mentioned compliance methodology and by matching each record with blacklists and existing laws it initiates the immediate shutdown of the operation or the start of its tracking process.