SAP Fraud Management Analytic Application to Help Companies Detect Fraud Earlier for Reduced Financial Loss and Lower Fraud Investigation Costs
DUBAI, United Arab Emirates — To help companies worldwide address the estimated US$3.5 trillion worth of fraud that occurs every year1, SAP AG (NYSE: SAP) today announced the SAP Fraud Management analytic application. Powered by the SAP HANA platform, SAP Fraud Management aims to enable enterprises across industries such as insurance, public sector, banking, healthcare and utilities to detect, investigate, analyze and prevent irregularities or fraud in “big data” environments.
|The typical organization is at risk of losing up to five percent of its revenues to fraud1. In 2011, the total potential projected worldwide losses due to fraud were $3.5 trillion1. SAP Fraud Management is intended to help companies address potential, significant losses due to fraud; the high cost and effort for fraud investigation and false alarms; difficulties in keeping track of changing fraud behaviors; and the inadequate or obsolete detection capabilities associated with newer fraud patterns.|
As part of the broader portfolio of SAP solutions for governance, risk, and compliance (GRC), SAP Fraud Management is planned to be adaptable to unique business needs and varying industries, in order to:
- Detect fraud earlier to reduce financial loss: The application is planned to provide real-time detection that leverages the power of SAP HANA and offers robust integration capabilities into business systems, along with alert notification and management features
- Improve detection accuracy at less cost: SAP Fraud Management aims to help minimize false positives through real-time calibration and simulation capabilities on large volumes of data
- Prevent and deter fraud situations: With the combination of rules and predictive methods, SAP Fraud Management is intended to help users optimize fraud scenario analysis and adapt measures to changing fraud patterns to better prevent fraud
“The rise of big data is forcing organizations to improve their governance, risk and compliance efforts. Being able to validate who did what, and provide a defensible audit trail, is key in addressing potential fraud,” said Michael Rasmussen, chief pundit, GRC 20/20. “There is a potential for organizations to face massive loss due to fraud. This is becoming even more of a risk with the ever-increasing amount of data being generated. Helping customers detect even a fraction of these cases would represent significant savings — employing advanced solutions to help detect and deter fraud makes sense.”
“SAP Fraud Management powered by our cutting-edge in-memory technology, HANA, will afford organizations across all industries the ability to detect, investigate, prevent and monitor any irregular fraudulent activities in business environments that deal with ultra-high volumes of data, on SAP and non-SAP systems alike. With SAP HANA massive computing power, SAP Fraud Management aims to bring unprecedented processing capabilities,” said Paul Devlin, Director of Business Analytics, SAP MENA. “With companies at risk of losing five percent of their revenues because of fraud, they need better analytical applications to help them identify and prevent fraud before these losses occur and to keep abreast of with changing fraud behaviors — all in real time.”
12012 Report to the Nations on Occupational Fraud and Abuse, Association of Certified Fraud Examiners
2Association of British Insurers
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