OFFICIAL GOVERNMENT FIGURES are underestimating the cost of fraud to the NHS by a factor of 20. A former counter-fraud detector Jim Gee claims that fraud is costing the NHS £5bn a year. It is also alleged that hundreds of millions are being wasted every year due to financial errors.
The government disputes the figures and estimates fraudulent losses of £229m per annum. Both numbers are staggering. The potential impact on front line services and patient welfare is stark.
Big Data Analytics – Countering Fraud in a Big Data World
The fraud and risk market is growing fast and Big Data analytics plays a central counter-fraud role. IBM has invested billions in Big Data Analytics and Big Data research. From the intelligence analysis software of i2 to the purchase of Israeli tech company Trusteer, IBM is amassing an impressive arsenal of counter-fraud weaponry.
IBM report that 25% of large companies will adopt Big Data Analytics for security or fraud detection by 2015. They estimate that $3.5 trillion (USD) are lost each year from fraud and financial crime with $21bn in identify fraud.
IBM Big Data and Analytics Help Stop Fraudsters in their Tracks. (PRNewsFoto/IBM)
Counter-fraud Big Data Analytics will be bolstered by the formation of a dedicated IBM Red Cell that will support the work of IBM X-Force.
Red Cell Rising
A ‘Red Cell’ may sound like an elite fighting unit in Crimea or somewhere to imprison Pussy Riot. It is however a new IBM counter-fraud intelligence task force. Red Cell will provide trend scanning, research and continuous improvement capabilities to counter-fraud Big Data Analytics.
Counter-fraud Analytics in London
IBM is working with London boroughs and is tackling council tax fraud in Camden. Hilary Simpson, Head of ICT Business Partnering at London Borough of Camden said “information we once considered unobtainable is now within our grasp. We have identified at least a dozen specific examples where a Residents’ Index, based on IBM Big Data and Analytics technology can help us. We have estimated that the solution could help to cut single person council tax discount fraud by five percent, potentially delivering major savings for our borough.”
Big Data Analytics is providing governments and businesses with unprecedented insight into citizen and consumer behaviour. Fraud leaves traces, data can be ‘dusted’ for digital fingerprints. The volume and combination of attributes that can be explored within the data has grown exponentially. Big Data Analytics and counter-fraud algorithms will help forensic investigators expose and prosecute the fraudsters.
The prize is obvious: reducing trillions of dollars in global fraud, and tackling appalling levels of financial crime in health and other sectors.
Big Data Books
- Big Data Analytics: Turning Big Data into Big Money
- Big Data: A Revolution That Will Transform How We Live, Work and Think
- Big Data at Work: Dispelling the Myths, Uncovering the Opportunities
- Data Science for Business: What you need to know about data mining and data-analytic thinking
- Doing Data Science: Straight Talk from the Frontline