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3 Instances Where E-mail Mining For Fraud Detection Could've Prevented Financial Loss
The document discusses three corporate fraud cases where email mining could have detected fraudulent activities, including a Netflix executive receiving kickbacks, HP discovering financial misrepresentation after acquiring Autonomy, and a law partner sharing confidential information. Each case highlights the importance of email communications in uncovering fraud, with statistics indicating significant financial losses linked to such schemes. The document emphasizes the need for proactive fraud detection measures to protect corporate reputation.
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3 Instances Where E-mail Mining For Fraud Detection Could've Prevented Financial Loss
- 1. By 3 Instances WhereE-Mail Mining For Fraud Detection… Could’ve Prevented Financial Loss
- 2. Do You RecognizeAny Of These Corporate Fraud Headlines? Breaking News
- 3. It’s ok ifyou don’t remember… because we’ll give you all of the details!
- 4. The databahn Times MikeKail Senior Netflix executive receives bribesCase # 1: • Mike Kail was the former VP of Information Technology Operations • Kail made a deal with IT service providers to receive bribes of 12% - 15% of the total deal value • Kail earned $490,000 in kickbacks • Netflix uncovered the fraud after Kail left • Netflix uncovered e-mails discussing “referral fees” • Kail got away with the crime because he was an upper-level employee
- 5. The databahn Times Britishsoftware company, Autonomy, falsifies numbers Case # 2: • HP acquired Autonomy for $11.1 billion in 2012 • HP discovered Autonomy misrepresented its finances – by $5.55 billion • HP filed a $5.1 billion lawsuit against Autonomy • E-mails were discovered between the former CFO and founder • Included the phrases “covered up” and “imaginary deals” • E-mails were checked and the truth was discovered after the deal had gone through
- 6. The databahn Times Formerlaw partner shares private information with opposing attorney Case # 3: • A former law partner at Willkie Farr & Gallagher, Keila Ravelo, had suspicious communications with the opposing counsel • Ravelo had an established friendship with the opposing counselor • The law firm found e-mails and attachments concerning the American Express litigation • The opposing counselor sent Ravelo documents secured under the American Express litigation protective order
- 7. What These HeadlinesHave In Common… Besides Fraud FRAUD ! ?
- 8. Proof of Fraud: AutonomyE-mail From The Telegraph E-Mail conversation between the CFO and founder
- 9. E-mail Mining WouldHave Saved… Time Money Median fraud duration in 2014 was 18 months Median loss in 2014 was $145,000 *stats from Association of Certified Fraud Examiners’ Report to Nations Reputation Your reputation is immeasurable
- 10. Internal Fraud CanHappen To Any Company Small Company Large Company You need to implement a proactive approach!
- 11. You’ve Seen EnoughFraud In The News... YOU Don’t become the next headline!
- 12. For more information,check out our blog at www.databahn.com/blog @844databahn Databahn databahn