Procurement Fraud Detection Solution

CHALLENGE

• Client was experiencing increasing procurement fraud cases, with concerns in high-risk regions
• Corporate Audit Committee identified need for improved data and analytics to support fraud
  detection and investigation at scale to reduce fraud risk
• Existing compliance tools were limited to ad hoc reports and data requests, meaning they were
  highly-manual, time intensive, and took months to refresh

SOLUTION

• Conducted 4-week assessment to review
  available data, evaluate existing tools, and
  prioritize compliance issues/opportunities
• Delivered Split-PO anomaly detection
  prototype in 5 weeks
• Automated, on-demand dashboard
  implemented in 2 additional weeks
• Expanded solution to include supplier
  favoritism detection through risk scoring
  (collusion, COI, kickbacks, etc.)

RESULTS

• Project payback achieved in one month with
  identification of only 1 Split-PO fraud case
• 20% improvement in investigation efficiency
• Fully-qualified fraud cases increased
  by 22%
• 42% Incremental Procurement Cost Recovery through detection of ‘unseen’ fraud