The seven wonders of fraud detection analytics

In 2000, a Swiss foundation thought it was time to name a New Seven Wonders of the World. After all, only one of the original seven that the Greeks compiled in the second century B.C. was still standing — the Pyramids of Giza. People around the world apparently agreed, casting more than 100 million votes in response to the foundation’s campaign. The final results were announced in 2007, but not without some controversy as participants grumbled about various wonders that were omitted. (See “ New Seven Wonders of the World,” by Amy Tikkanen, Britannica, and “Seven wonders stir up controversy,” by Tom Robbins, The Guardian, June 3, 2007.)

In this “Innovation Update,” I take inspiration from the Seven Wonders of the World and compile my own top-seven list of the best ways to prevent, detect and investigate fraud using data analytics. Like the New Seven Wonders of the World, this isn’t intended to be an all-inclusive list but serves to highlight some of the key techniques that fraud examiners can use in their investigations and proactive monitoring efforts.