The uses of data analytics in compliance is almost unlimited. When you pair data analytics with human behavioral analytics, you can create a very powerful tool in the worldwide fight against fraud directed at corporations. Fraud has become a silent enemy that is killing companies worldwide, according to., Marta Cadavid, CEO of NoFraud Latam. To combat this growing problem, she and her colleagues have developed an AI-based software called the Fraud Explorer. This innovative software utilizes artificial intelligence, behavioral analytics, natural language processing, and triangle analytics to predict, prevent, and detect fraudulent activities in real time.
The Fraud Explorer is not just a tool for fraud detection; it is a proactive approach to fraud prevention. By analyzing human behavior and understanding the intentions behind it, the software can identify potentially fraudulent activities before they occur. This is achieved by reading and analyzing the communications of individuals within the corporate environment.
The software is built on a methodology that combines technology, people, and processes. It allows for the articulation of communication strategies within the company, enabling the software to read and understand communications across various business units and industries. This adaptability ensures that the Fraud Explorer can effectively operate in different communication styles and cultural contexts.
One of the key features of the Fraud Explorer is its ability to create a comprehensive behavioral library. This library consists of over 100,000 expressions related to opportunities, rationalizations, misbehaviors, and sociocultural issues. By understanding the culture in different countries and languages, the software can effectively detect potentially fraudulent activities across different regions.
The Fraud Explorer’s approach is based on the fraud triangle, which includes the factors of rationalization, pressure, and opportunity. By utilizing this established methodology, the software can explain its underlying basis to customers, corporations, and compliance officers. This helps build trust and understanding of how the software operates and its potential benefits.
One of the key advantages of the Fraud Explorer is its focus on prevention rather than detection. While traditional approaches to fraud risk management rely on audits and forensic accountants to identify past fraudulent activities, the Fraud Explorer uses data analytics to prevent fraud before it occurs. This proactive approach can save companies significant financial losses and reputational damage.
To effectively manage human risk, the Fraud Explorer utilizes behavioral analytics. By combining artificial intelligence, natural language processing, and triangle analytics, the software can predict, prevent, and detect human behavior in real time. This allows companies to understand and address a wide range of human risks, including fraud, compliance, cybersecurity, bullying, discrimination, and harassment.
Implementing the Fraud Explorer requires a multidisciplinary team with diverse backgrounds, including lawyers, data science professionals, and certified fraud examiners. This collaborative approach ensures that the software’s strategy aligns with the company’s overall risk mitigation efforts. Human resources also play a crucial role in preventing and detecting misbehaviors, as human risk extends beyond fraud and corruption to encompass a wide range of illegal activities.
In conclusion, the AI-based fraud prevention software developed by NoFraud Latam offers a comprehensive and proactive approach to combating fraud. By leveraging artificial intelligence, behavioral analytics, and natural language processing, the Fraud Explorer can predict, prevent, and detect fraudulent activities in real time. Its focus on human behavior and understanding cultural contexts makes it a versatile tool for companies across various industries and regions. With the Fraud Explorer, companies can take a proactive stance against fraud, saving themselves from significant financial losses and reputational damage.
