Are software and technology providers making any advances in fraud detection?
Numerous software companies have designed products that perform fraud tests on real-time, daily transactions. They can also conduct tests on historical data. This software attaches to a company’s systems for accounts payable, accounts receivable, expense reporting or any system that conducts financial transactions. Tools can examine every transaction (both financial and administrative) and run each transaction against a series of tests. The more common indicators of fraud include a vendor address that is the same as an employee address, duplicate invoice numbers and multiple changes in vendor identity fields. Most of the software currently available runs approximately 100 tests per transaction. These automated daily reviews provide exception reports when a transaction is flagged. The software not only detects potential fraudulent activity but can also recognize legitimate mistakes. Companies with this type of software in place have saved tremendous amounts of money by identifying fraud
