Extracted 09SEP2011 from http://www.accenture-blogpodium.nl/latest-post/new-environment-of-fraud/
Posted on September 9th, 2011 at 12:07 pm by Tom van der Spek
Like stated in my first blog post, Insurance fraud is becoming an increasingly bigger problem in the Netherlands with an estimated 1 Billion Euro fraudulent claims annually. Organized crime, global terrorism, and new and ever-changing types of fraud – in addition to increased regulatory requirements – have led financial services organizations to pursue new techniques for preventing and detecting illegal activities...
Due to regulatory concerns and the increasing sophistication of fraud attacks, financial services organizations can no longer treat fraud as a cost of doing business. Instead, organizations must invest in advanced prevention and detection strategies to minimize their fraud losses while protecting both their reputations and good standing with regulators.
An effective approach to fraud asks for integral planning where organizational structure, business processes and applied data analytics meet. The financial and reputational risks from fraud have increased at a time when financial services organizations’ focus on driving costs down have cut resources available for fraud prevention and detection. Firms must keep in mind the reality that a certain level of controlled risk enables growth. Investments in the processes and technologies to manage fraud and financial crime can provide a competitive advantage, not just a reduction in losses.