Internal Fraud Analytics

Introduction

A risk assessment scoring system for relationship managers
Successful on-going measurement of fraud events and activity allowing the audit department instant identification of potential fraudulent activity.

Challenges

• Complex design requirement for a dynamically weighted scoring system to assess the risk at a resource level.
• KPIs needed to be scored from the CRM and multiple transactional systems.
• The transactional systems were distributed across 7 countries and had unique tabular designs.
• Test data was highly limited due to country specific private banking regulations and protection of account holder identification. Testing could only be incurred in-country, separate from country of development.
• The solution needed to be backward compatible – i.e. be able to test and score known past fraudulent activities.

Solutions

• A relational database was used to build views of transactional and aggregated levels of data.
• A QlikView dashboard was designed to allow variable weighting of risk points, over 30 KPIs.
• Highly complex risk calculations were tested and validated in the front end before being moved to and optimized in the ETL process.
• The QlikView data model incorporated a linked table and dual calendar (data island) design.

Benefits

• The audit department could instantly identify relationship managers that needed to be investigated internally.
• The ability to immediately change individual risk weightings allowed auditors to build a level of significance across their board of leading indicators.

Impacts

• The client successfully back tested all known fraud events.
• The client identified multiple cases of potential historic fraudulent activity.
• Potential cases of active fraud where bough to the clients attention for immediate investigation.