Fraud Detection Analytics

Fraud presents a constant threat to all organizations, both large and small. Fraudsters exploit vulnerabilities in an organization’s internal controls, systems, and people. In addition to financial losses, fraud can damage reputation; weaken consumer and investor confidence; impact share price and employee morale, and result in costly regulatory investigations from which many organizations fail to fully recover.

The ability to detect and prevent instances of fraud early is vital to avoiding business-critical problems. K2 Integrity helps clients identify and uncover fraudulent activities and schemes, while also assisting with the recovery of losses associated with fraud. Our team uses proprietary research-gathering tools and advanced data analytics technology to identify the indicators of fraud from the large volumes of data held by organizations, often from a variety of independent data sources.

Fraud Detection 

Our tailored fraud detection analytics provide insight into clients’ most critical data to detect fraud and areas of high risk, including the following:

  • Conflicts of interest involving purchasing, sales schemes, and customer collusion
  • Nepotism
  • Bribery, kickbacks, commissions, bid-rigging, and illegal gratuities
  • Overcharging
  • Theft of cash and skimming
  • Billing and expense reimbursement schemes
  • Fictitious invoices, suppliers, and credit notes
  • Ghost employees and payroll fraud
  • Inventory and raw material misuse and theft
  • Financial statement fraud, including fictitious revenue, timing differences, and concealed liabilities
  • Over-reliance on key suppliers and customers

K2 Integrity’s investigators design fraud detection analytics for each client based on the client’s profile, industry, geography, size, and regulatory environment. The result is a bespoke fraud prevention diagnostic service that identifies potential fraud indicators and areas of high risk through the interrogation of patterns and irregularities in large data sets.

Monitoring and Prevention

Detection of fraud is one of the best forms of fraud prevention and is a crucial mechanism in uncovering and preventing fraud and corruption within an organization and should be part of an organization’s ongoing fraud monitoring and prevention program. 

Fraudsters are not easily deterred and will continue to look for ways to exploit an organization’s control weaknesses. As such, it is vital for an organization to review and tighten its controls, policies, and procedures, and develop a program for ongoing fraud monitoring. K2 Integrity brings together experts in compliance, forensic accounting, law enforcement, government regulation, and financial services, who work with clients on a continuous basis to ensure their organizations stay ahead of fraud and corruption issues.