Countering Fraud with Big Data Analytics

Using Big Data and Big Data Analytics in the fight against sophisticated financial fraudsters.

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: Using Smart Big Data, Analytics and Metrics to Make Better Decisions and Improve Performance

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.

IBM Big Data and Big Data Analytics Help Stop Fraudsters in their Tracks. (PRNewsFoto/IBM)
IBM Big Data and Big Data Analytics Help Stop Fraudsters in their Tracks. (PRNewsFoto/IBM)

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 in Practice (Use Cases): How 45 Successful Companies Used Big Data Analytics to Deliver Extraordinary Results

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

By Steve Nimmons

Steve is a Certified European Engineer, Chartered Engineer, Chartered Fellow of the British Computer Society, Fellow of the Institution of Engineering and Technology, Royal Society of Arts, Linnean Society and Society of Antiquaries of Scotland. He is an Electric Circle Patron of the Royal Institution of Great Britain, a Liveryman and Freeman of London and serves on numerous industry panels. He is a member of Chatham House, the Royal United Services Institute and the Chartered Institute of Journalists.

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