OFFICIAL GOVERNMENT FIGURES are underestimating the cost of fraud to the NHS by a factor of 20. A former counter-fraud detector Jim Gee claims that fraud is costing the NHS £5bn a year. It is also alleged that hundreds of millions are being wasted every year due to financial errors. How can Big Data and Big Data Analytics be used to help solve the problem?
The government disputes the figures and estimates fraudulent losses of £229m per annum. Both numbers are staggering. The impact on front line services and patient welfare is stark.
The Chancellor of the Exchequer announced funding for Big Data research in his 2014 budget. What part could Big Data play in helping UK Government and NHS Protect reduce financial crime?
Big Data Analytics – Countering Fraud in a Big Data World
The fraud and risk market is growing fast and Big Data analytics plays a central counter-fraud role. IBM has invested billions in Big Data Analytics and Big Data research. From the intelligence analysis software of i2 to the purchase of Israeli tech company Trusteer, IBM is amassing an impressive arsenal of counter-fraud weaponry.
IBM report that 25% of large companies will adopt Big Data Analytics for security or fraud detection by 2015. They estimate that $3.5 trillion (USD) are lost each year from fraud and financial crime with $21bn in identify fraud.
Counter-fraud Big Data Analytics will be bolstered by the formation of a dedicated IBM Red Cell that will support the work of IBM X-Force.
Red Cell Rising
Red Cell is a new IBM counter-fraud intelligence task force which will provide trend scanning, research and continuous improvement capabilities to counter-fraud Big Data Analytics.
Counter-fraud Analytics in London
IBM is working with London boroughs and is tackling council tax fraud in Camden. Hilary Simpson, Head of ICT Business Partnering at London Borough of Camden said “information we once considered unobtainable is now within our grasp. We have identified at least a dozen specific examples where a Residents’ Index, based on IBM Big Data and Analytics technology can help us. We have estimated that the solution could help to cut single person council tax discount fraud by five percent, potentially delivering major savings for our borough.”
Big Data Analytics is providing governments and businesses with unprecedented insight into citizen and consumer behaviour. Fraud leaves traces, data can be ‘dusted’ for digital fingerprints. The volume and combination of attributes that can be explored within the data has grown exponentially. Big Data Analytics and counter-fraud algorithms will help forensic investigators expose and prosecute the fraudsters.
The prize is obvious: reducing trillions of dollars in global fraud, and tackling significant levels of financial crime in health and other sectors.
Further Reading on Big Data
- Big Data: A Revolution That Will Transform How We Live, Work and Think
- Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die
- Data Smart: Using Data Science to Transform Information into Insight
- Predictive Analytics, Data Mining and Big Data: Myths, Misconceptions and Methods (Business in the Digital Economy)
- Big Data at Work