IBM has introduced new software and services to help organizations use Big Data and Analytics to address the $3.5 trillion lost each year to fraud and financial crimes. Through sophisticated business expertise and analytics, organizations can take a holistic approach to address the financial losses caused by fraud.

As part of this news, IBM launched its “smarter counter fraud” initiative, drawing on the expertise and innovation from more than 500 fraud consulting experts, 290 fraud-related research patents, and $24 billion invested in IBM's Big Data and Analytics software and services capabilities since 2005. The initiative extends IBM's leadership in Big Data and Analytics and Cloud to help public and private organizations prevent, identify and investigate fraudulent activities.  

IBM is delivering new software that allows organizations to gain better visibility and take a more proactive, holistic approach to countering fraud. This includes the ability to aggregate Big Data across a variety of internal and external sources—including mobile, social and online—and apply sophisticated analytics that continuously monitor for fraudulent indicators.

The new offerings feature advanced analytics that understand non-obvious relationships and co-occurrences between entities, new enhanced visualization technologies that can identify and connect fraudulent patterns closer to point of operation, and machine learning to help prevent future occurrence based on previous attacks and behaviors.  

The new software and services include:

Counter Fraud Management Software: A single offering that brings together IBM's Big Data and Analytics capabilities to help organizations aggregate data from external and internal sources and apply sophisticated analytics to prevent, identify and investigate suspicious activity.

It includes analytics that understand non-obvious relationships between entities, visualization technology that identifies larger patterns of fraud, and machine learning to help prevent future occurrence based on previous attacks. To enhance these capabilities as new threats emerge, IBM also launched a new counter fraud intelligence task force, IBM Red Cell, that will work in tandem with the IBM X-Force unit to continuously research trends, develop strategies, and deliver enhancements to the software and services R&D team.

Counter fraud service offerings: Industry-aligned services that combine IBM's consulting, software and technology expertise to help clients improve their counter fraud programs, including:

Outcome-based Accelerators: Evaluate an organization's counter fraud capabilities and provide rapid prototyping to demonstrate business value for enterprise-wide protection.

Target Operating Model: Design organizational constructs, operational governance and technology architecture to better detect fraud, and respond and investigate exposures.

Scale and Manage: Fast implementation of strategies and technological dimensions to customize and run counter fraud programs tailored for each client.

Fraud discovery assets: A portfolio of customizable, research-developed assets that use analytics to discover fraud, waste, abuse and errors in data intensive industries and functions. These assets analyze an organization's internal data to measure behavior, and then compare the results within specific peer groups to identify anomalies that indicate suspicious activity.

Based on the results, an investigation recommendation is made. The assets are available across industries for enterprise-wide discovery. The fraud discovery assets will be available in the cloud, enabled by IBM SoftLayer, with focus on the following areas:

Medical Fraud: Discovers fraud during provider, beneficiary and internal employee profiling using IBM's Fraud Asset Management System.

Insurance Claim Fraud:  Enables insurers to detect suspicious activity for claims submitted by vendors, brokers and individuals using IBM's Loss Analysis and Warning System.

Public Tax Fraud: Empowers governments to address tax gaps by uncovering tax evasion activities and filing inaccuracies using IBM's Tax and Audit Compliance System.

Occupational Fraud: Helps organizations discover fraud for accounts payable, travel and expense claims, and other fraud committed by employees.

Counter fraud as a service:  IBM will offer four levels of counter fraud capabilities as a service. These include Hosting; Application Management; Behavior Modeling & Scoring; and Analytics & Referral Generation. All four use a subscription-based model to give clients flexible choices that match their business needs and technical requirements. IBM's Counter Fraud Center of Competency gives clients global access to expertise, including fraud industry experts, advanced analytic capabilities, and technical implementation services.

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