SAP Fraud Management

SAP Fraud Management is a product for opposition to fraud in spheres where the general losses make 3.5 trillion US dollars: in insurance companies, the organizations of the state, bank sectors and housing and public utilities and also medical institutions, etc.

2015

Common offering of SAP, EY and SPI

On November 12, 2015 the companies SAP, EY also Institute of security concerns and information analysis (SPI) provided technology for the companies of any scale for the purpose of reduction of risk of losses from fraudulent transactions.

The SAP Fraud Management system, the analytical Institute of Security Concerns and Information Analysis (SPI) tools and examination of EY, will help to save to the companies about 2% of revenue due to minimization of financial and material losses, building of the early warning system about possible offenses and errors.

As a part of a product a full range of tools for calculation of the main fraudulent activity and errors:

• corporate business investigation and identification of risks,
• analysis of management information,
• analysis of accounting entries and registers,
• analysis of external sources,
• analysis of logistics information and check of perimeters of objects,
• the automated control of business applications.

The consolidated solution will provide an opportunity for heads of divisions to quickly receive signals of suspicious transactions and necessary information on each incident that allows to make the fast and thought-over decisions.

The consolidated solution will allow to increase control of correctness of pricing and application of discounts, observance of estimates and terms of projects, identifications of cases of fraud on production, warehouses and repair work. Use of common offering of SAP, EY and Institute of security concerns and information analysis (SPI) reduces risks of fraudulent activity in the main fields of activity of the companies:

• purchases,
• logistics,
• sales
• corporate financial activities.

"The consolidated security system will help owners of business, it is essential to Boards of Directors and security services to reduce deliberate and unintentional losses that will favorably affect the profit of the company. In the conditions of economic instability such powerful instrument of increase in efficiency as cost reduction because of losses and plunders, according to us, cannot be ignored. The solution on counteraction to fraud is focused, first of all, on the companies which care for efficiency and transparency of the business, long-term growth and a faultless goodwill" — Dmitry Shepelyavy, the deputy CEO of SAP CIS noted.

"The single consolidated solution — useful and necessary addition to a corporate IT landscape, especially today when the complexity and amount of information risks significantly increase. The project on implementation of such solution lasts, on average, half a year. As a result the customer receives the individual solution created taking into account key risks of the enterprise. By our estimates, the implemented system will be able to pay for itself in one-three years" — Alina Zasimovich, the director of EY said.

"Check losses from negligent or malicious actions — a difficult task, especially for the large companies with the developed branch network. Such losses — only an iceberg top: their identification and prevention leads not only to quantitative, but also high-quality changes, creates a fruitful environment for dynamic organization development that, finally, positively influences provision of the company in the market. To these purposes also serve the solution proposed by three market leaders: SAP, EY and Institute of security concerns and information analysis (SPI)" — Marat Chokparov, the CEO of Institute of security concerns and information analysis (SPI) emphasized.

About an output of the SAP solution Fraud Management for Banking to the Russian market

In November, 2014 the SAP CIS company announced an output of the SAP solution Fraud Management for Banking to the Russian market. The solution helps banking and financial institutions to prevent losses from malicious actions, to cut down expenses on investigation of similar cases and false signals at the expense of the instant analysis of Big Data. The tool contains the preconfigured scenarios of identification of the abuses connected with counteraction of legalization of income gained in the criminal way and to financing of terrorism (ANTI-MONEY LAUNDERING). Speed of operation of the tool was tested by one of the leading banks of Europe and showed increase in speed of work by 1200 times among 20 million customer accounts and 1 billion transactions. News was announced within SAP HANA Council.

According to IDC, world information volume will increase by 2020 is tenfold and will reach the 44th zettabyte. Russia does not lag behind world trends, and for today our country saved up about 155 exabytes of information that makes about 2.4% of world data. At the same time Big Data can how to open new opportunities of business development for several tens industries, well threat of activity of the company. As Uwe Grigoleit, the director of global division of development of Suite on HANA and applications on HANA, the increasing amount of data used by the companies noted leads also to growth of volume of the world market of security by 7-12% a year.

In Russia the problem with safe use of data is particularly acute, in particular, in the questions concerning internal use of data. According to a research of Vegas Lex law company, over a third of the Russian companies in 2013 revealed at themselves signs of corporate fraud (38%), at the same time in some cases the damage was up to one billion dollars.

According to Dmitry Shepelyavy, the deputy CEO of SAP CIS, the Russian financial institutions will be able to cope with a problem using the solution, new to the CIS countries, now: "SAP Fraud Management for Banking on the SAP HANA platform allows to detect malicious actions in real time, is easily integrated, has a management system and notifications on danger. In the current situation the similar tool can significantly increase cost efficiency of many Russian financial institutions and if to speak about the SAP Fraud Management platform, then and the companies in other branches of the economy"

2014

2013

In March, 2013 the SAP AG company announced the analytical SAP solution Fraud Management based on SAP HANA which will help with fight against fraud in spheres where the general losses make 3.5 trillion US dollars: in insurance companies, the organizations of the state, bank sectors and housing and public utilities and also medical institutions and other.

SAP Fraud Management will help the companies to prevent losses from fraudulent activity, to cut down expenses on investigation of similar cases and false signals, using "Big Data". The solution is included into wider solution portfolio of SAP for risk management and ensuring compliance to standards (GRC) and can be adapted to requirements of any enterprise. It gives the chance to reveal fraud cases at the earliest stages and by that to reduce financial losses. Thanks to the productive SAP HANA platform the solution allows to detect fraudulent activity in real time, is easily integrated, has a management system and notifications on danger. Also the accuracy of detection of fraudulent activity with smaller costs increases. The SAP solution Fraud Management minimizes quantity of false signals thanks to management and modeling in real time using "Big Data". Besides, prevents fraud cases - uses a combination of rules and predictive measures to improve the analysis of fraudulent activity, to adapt to the changing behavioral models of malefactors and to stop similar cases.

"The saved-up amount of data forces the organizations to improve approach to risk management and ensuring compliance to regulatory requirements. Successfully to struggle with swindlers, it is important to monitor the performed operations and to keep magazines of audit, - Michael Rasmussen, the chief expert of GRC 20/20 analytical company considers. - The organizations can suffer huge losses because of swindlers. The similar risk increases even stronger when it is necessary to process constantly increasing amount of data. If clients could reveal, at least a small share of cases of fraud, it would already bring significant savings therefore application of the latest solutions for detection and prevention of cases of fraud really makes sense".

In the USA insurance companies faced cases of the fraud which is not connected with health care for the amount over 40 billion dollars a year. The association of the British insurers reports more than about 2500 counterfeited statements for insured events a week that it makes over 900 million pounds sterling a year. Insurance companies are forced to refuse identification of cases of fraud by traditional methods owing to their low performance. SAP Fraud Management for Insurance developed together with the largest international insurance companies offers not only a full stroke on fraud identification: from detection of counterfeited statements for an insured event before preventive protection against similar abuses, but also bilateral information exchange in real time between processing of information on fraud and statements for insured events for the approved interaction and optimization of these processes. In addition to all opportunities, the solution allows to make the optimized investigation: the clear functionality and the system of notifications help to trace actions of the malefactor, since emergence of the first signs of fraud.

Thus, the SAP solution Fraud Management for Insurance helps insurance companies to reveal automatically fraud cases, to increase the effectiveness of their investigation and to refuse payments for illegal statements for insured events.

Tax avoidance and fraud in the social sphere not only hurt reputation of state bodies, but also cause budget deficit. The SAP solution will help to reduce quantity of cases of fraud and mismatch to regulatory requirements using cross validations of tax declarations and applications for receiving the social help, comparing millions of records in real time and instantly detecting whether data of the statement with information from other sources match. Application of predictive algorithms SAP HANA for the analysis of a large number of transactions will allow to reveal the hidden fraudulent activity and to notify on suspicious cases which could remain unnoticed when using traditional methods of detection of fraud and discrepancies.