Organizations lose an estimated five percent of annual revenues to fraud, totaling nearly $1 trillion in the U.S. alone. Cyber criminals are more organized and better equipped than ever, and continue to evolve their strategies in order to undermine even the strongest protections. We continue to hear about major security breaches across all industries, but what is being done to fix the problem? There must be a tight interlock between risk, security, fraud and financial crimes management. Current solutions are proving inadequate as point solutions and a corporate silo mentality directly contribute to the risk of fraudulent activities going undetected. Our webinar covered: -How IBM’s Smarter Counter Fraud initiative can help public and private organizations prevent, identify and investigate fraudulent activities -Real-world use cases including how one financial institution stopped $1M in fraud in the first week after implementing a counter-fraud solution -Perficient’s multi-tiered approach to help guide successful business outcomes It’s time to stop the bad guys with IBM Smarter Counter Fraud and Perficient – learn how now!

1. Fortify Your Enterprise with IBM Smarter
Counter-Fraud Solutions
facebook.com/perficient linkedin.com/company/perficient twitter.com/Perficient_IBM

2. About Perficient
2
Perficient is a leading information technology consulting firm serving clients throughout
North America.
We help clients implement business-driven technology solutions that integrate business
processes, improve worker productivity, increase customer loyalty and create a more agile
enterprise to better respond to new business opportunities.

3. Perficient Profile
3
• Founded in 1997
• Public, NASDAQ: PRFT
• 2013 revenue $373 million
• Major market locations:
• Allentown, Atlanta, Boston, Charlotte, Chicago, Cincinnati,
Columbus, Dallas, Denver, Detroit, Fairfax, Houston,
Indianapolis, Lafayette, Minneapolis, New York City,
Northern California, Oxford (UK), Philadelphia, Southern
California, St. Louis, Toronto, Washington, D.C.
• Global delivery centers in China and India
• >2,200 colleagues
• Dedicated solution practices
• ~90% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology and growth awards

4. BUSINESS SOLUTIONS
Business Intelligence
Business Process Management
Customer Experience and CRM
Enterprise Performance Management
Enterprise Resource Planning
Experience Design (XD)
Management Consulting
Our Solutions Expertise
TECHNOLOGY SOLUTIONS
Business Integration/SOA
Cloud Services
Commerce
Content Management
Custom Application Development
Education
Information Management
Mobile Platforms
Platform Integration
Portal & Social

5. Smarter Threats, Smarter Counter Fraud
Aaron Glover, IBM Counter Fraud Management
Consultant & Financial Crimes SME

6. Agenda
6
Speaker Introduction
Defining the Fraud Problem – Scope and Dimensionality
Quantifying the Fraud Problem – Forces, Externalities,
and Impacts
Qualifying the Fraud Problem – Barriers and
Opportunities
The IBM Smarter Counter Fraud Approach
The IBM Smarter Counter Fraud Results
Closing Remarks and Summary

7. IBM Smarter Counter Fraud
Big Data
Analytics
Statistics
Fraud
Prevention &
Detection
Information
Security
Anti Money
Laundering
Banking &
Financial
Services
7
Aaron J. Glover
• Joined IBM Counter Fraud Management Software Group in 2014
• Bank Fraud Analytics & Strategies for Large Super-Regional Bank
• Account Take Over (Cyber vs. Non-Cyber)
• Anti Money Laundering (AML)
• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD)
• Know Your Customer (KYC)
• Know Your Customer’s Customer (KYC2)
• Sanctions Screening
• Transaction Monitoring
• Check Deposit Fraud / Kiting
• Check Fraud
• Debit / Credit Plastic Card Fraud
• Emerging Technology Schemes (Remote Deposit Capture, Bitcoin)
• Hadoop-based Big Data Super Computing Infrastructure
• Internal / Employee Fraud
• Regulation E Claims Abuse
• Reward Points Program Abuse
• Wire / ACH Fraud
• Analytics Consulting for Nationwide Home Improvement Retailer
• Information Security Consulting for Health Insurance Provider
• Education & Certifications
• Charted Financial Analyst (CFA) Level III Candidate
• Master of Business Administration (MBA), Finance & Operations Management, Georgia Institute of
Technology
• Master of Science (MSc), Financial Engineering, Georgia Institute of Technology
• Bachelor of Science (BSc), Statistics, University of Tennessee
• CompTIA Security+

8. IBM Smarter Counter Fraud
8
Fraud is a deliberate deception or misrepresentation which violates
a legal statute and is intended to produce an undue financial gain.
Organized
Opportunistic
Staged events
Money laundering
Organized Provider
Individual Employee
Slip and fall
Arson
Tax fraud
Medical fraud
Improper billing
Improper payments
Procurement
Financial statement
Expense
Scope includes
Financial crime including money
laundering, cyber attack and
illegal security breach.
Abuse which similar to fraud but
not determined to violate the law.
Waste & Error refer to improper
payments which are the result of
over paying due to poor policies or
operational mistakes
Risk includes financial,
operational, IT and security risks
and financial crimes which all
must be identified, monitored and
controlled.

9. IBM Smarter Counter Fraud
9
Converging forces are escalating fraud risk, exerting significant
downward pressure on an organization’s bottom line.
Increasingly frequent
and complex fraud
The explosion in global connectivity
has escalated the vulnerabilities of
individuals, enterprises and nations
to cybercrime
Intensifying regulatory enforcement
and operational losses apply
significant pressure on profitability
Customer convenience, satisfaction
and trust drive brand choice and
must be earned on an ongoing basis
1 The 2013 Norton Report
2 United Nations Office on Drug and Crime, Comprehensive Study on Cybercrime, February 2013
3 The Fiscal Times, Feds Blow $100 Billion Annually on Incorrect Payments, Jan 15, 2014, amount in US $
4 Reuters, Dec 11, 2012, amount in US $
5 Brand Index, Company perception falls after data breach, Dec 23, 2013, Brand Index ranges from -100 to 100 pts
6 Entersekt-sponsored Harris Interactive US survey conducted May 14-16, 2013
schemes
12 cybercrime victims per
second1
80% of schemes are perpetrated
by organized criminal
groups2
Fraud no longer
acceptable as “cost of
doing business”
$100 billion annual improper
payments by US Fed
Agencies3
$1.92 billion largest fine to-date
in money
laundering case4
Customer expectations
are on the rise
45 point drop - retail store
brand perception index
change one week after
data breach5
71% customers who will switch
banks due to fraud6

10. IBM Smarter Counter Fraud
Advantage to the fraudster: isolated data, point solutions and corporate silo
culture play into the fraudsters hands – especially in emerging markets
Claims
Analytics
Underwriting
Legal
Special
Investigative Unit
(SIU) – Analysts &
Investigators
Risk
Management
The challenges:
Narrow observation space
Isolated Data
Reactive versus Proactive
Accepted cost of doing business
Departmental band-aides
Dept A Dept B Dept C Dept D

11. IBM Smarter Counter Fraud
IBM’s Point of View is based on advances in technology that can enable
organizations to stay ahead of the threats, improve the bottom line and
enhance customer / citizen engagement
1 | Elevate the agenda
• Elevate to board-level responsibility
• Manage fraud risk to improve business impact
• Establish cross organizational leadership to counter
fraud and financial crimes
2 | Act with insight superiority
• Expand the observation space
• Apply deep and layered analytics at each
level of fraud lifecycle
• Act upon suspicions as they are identified
3 | Adapt with agility
• Leverage technology to auto`mate response
• Implement a lifecycle management approach to
continuously adapt to evolving threats
• Tap into and engage with industry-wide, global intelligence
networks

12. IBM Smarter Counter Fraud
IBM Smarter Counter Fraud Management addresses each phase of
an enterprise fraud approach.
Detect
Investigate
Respond
Discover
Detect fraud
within a
business
process
Turn fraud
intelligence into
action with
investigative analysis
Apply fraud
insights to take
action in real
time—when it
matters
Uncover hidden
fraud within Big
Data


13. IBM Smarter Counter Fraud
IBM Smarter Counter Fraud framework defines our recommended
structure for both Technology and Services to reduce fraud.

14. IBM Smarter Counter Fraud
A comprehensive set of integrated market-leading software and
services capabilities designed to combat today’s new threats.
Counter: Fraud management
Detect
decision time
Respond
stop or proceed
Investigate
suspicious activity
Discover
retrospective
Prevent: Fraud defense
Cybercrime Protection
Security Intelligence
Controls, Policies and
Processes
Governance
Intelligence

15. IBM Smarter Counter Fraud
IBM Counter Financial Crimes software plus services delivers a holistic solution.
Detect
Predictive analytics
Entity Analytics
Rules
Decision
management
Respond
Operational system
integration
Action
Guidance
Rules
Discover
Selection
Evaluation
Anomalies
Identification
Investigate
Case management
Content analytics
Relationship
visualization
Forensic analysis
Expanded observation space
Report
Dashboards
Operational
reporting
Case briefing
Feedback
Operational systems
Advanced industry libraries
Data models | Predictive models | Rules | Reports | Process | External fraud data and more
Real time | In-line Back-office analytics
Information
domains
External
sources
Big data
Evolving unstructured
sources
Internal
sources
Target operating model
how you run and operate
Enablement
standing up the capabilities
Strategy and roadmap
what you should do and when
Services

16. IBM Smarter Counter Fraud
Detect Prevent Detect Respond DDiissccoovevrer InInvveessttigigataete RReeppoortrt
Business
Rules
Entity
Analytics
Predictive
Model
Optimize
Decision
Manager
Anomaly
Detection
Detection
Transactions
(Financial)
Forensic Investigation
Reporting and
Dashboards
Entity Analytics
Real Time Alert
New Investigation
Case Management
Customer
Criminal
Discovery
Emerging
model library
Selection
Evaluation
Identification
Observation Space
Customer
Actions ?

17. IBM Smarter Counter Fraud
Entity Analytics – Resolving Who’s Who and Who’s Related to Who
• There are no consistent standards for names. Some countries mandate certain standards
but they differ from country to country, and most countries have no standards.
• Names can contain a variety of OPTIONAL information that can make the same name
appear very differently.
Typos, Misspellings:
 SMITH~SIMTH, JOHNSON~JPHNSON
Noise
 THOMPSON~TH9MP2ON
Concatenations:
 Andrews~AndrewsJR
Truncations/Initials:
 Ivanov~Ivanovsky, Patrick~P
 Abdul ~ Abdul Rahman
Name Order (parsing):
 George Michael ~ Michael George
 Maria del Carmen Bustamante de la Fuente
Qualifiers, Titles, Suffixes, Prefixes:
 Jr., Dr., Hajj, -oglu, Fitz, Rev., Abdul…
Nicknames/Shortened Names:
 Dave Young / David Young.
 Francisco Garcia / Paco Garcia.
 Mhd Al-Fadhil / Muhammed Al-Fadhil.
 GPE Sanchez / Guadalupe Sanchez.
Phonetics:
 Leighton ~ Layton
Variant Spellings
 Mohammed ~ Imed
Transliteration
 محمد عمر عايد على جادالله “ ~ Mohammed Omar
Ayed Ali Jadallah

18. IBM Smarter Counter Fraud
Entity Analytics – Resolving Who’s Who and Who’s Related to Whom

19. IBM Smarter Counter Fraud
Detect – Rules and Analytics
Graphical UI makes it easy to integrate multiple data sources and multiple different
types of analytics into a single flow without coding.

20. IBM Smarter Counter Fraud
Detect – Content Analytics powered by Watson
Watson Content Analytics are seamlessly integrated into Counter Fraud
Management to mine, search and analyze unstructured data.
• Automatically enrich information
so analysts can focus on
decision making, not research
• Often, the links between things
are buried in unstructured
information (e.g. how do you
know that Joe works with Bill?
From email or website.)
• Search across all cases,
documentation, claims, policies,
web pages, lists, public records

21. IBM Smarter Counter Fraud
Respond – Case Management and Investigation
Graphical UI makes it easy to investigate, triage, and reach actionable decisions.

22. IBM Smarter Counter Fraud
Investigate – Social Network Analysis
Graphical UI makes it easy to investigate and uncover non-obvious interconnected
relationships through social network analysis techniques.

23. IBM Smarter Counter Fraud
Discover – Business Intelligence and Reporting
Reporting seamlessly leverages the data from detection and investigation to
manage the business and visualize patterns.
Timelines
Program Efficiency Money flows
& Effectiveness
Fraud risk heat maps
Exposure by Type by Geo

24. IBM Smarter Counter Fraud
Discover – Business Intelligence and Reporting
Management Summary Reports Examples

25. IBM Smarter Counter Fraud
The IBM Smarter Counter Fraud Results for a Large North American Bank
25 12/9/2014

26. IBM Smarter Counter Fraud
The IBM Smarter Counter Fraud Results
Results achieved at a leading Bank
• Identification of $9.4M in fraudulent ATM deposits annualized, that had
not been flagged for investigation by the Bank’s existing alerting system
• 10% reduction in false positive alerts, which translated to a doubling in
accuracy when identifying truly fraudulent deposits
• 130% increase in detecting of ATM fraud
IBM’s capabilities that achieved these results
• Leverage Big Data/Analytics capabilities to enhance algorithmic and
models
• High speed storage
• Ability to understand and apply unstructured data
• Real-time or near real-time decision making
• Increased data linkage
• Risk Scoring of customers and transactions
• Predictive analytics
26 12/9/2014

27. IBM Smarter Counter Fraud
The IBM Smarter Counter Fraud Results
Business Challenge: Money Services Business (MSB) faced pressure to keep up with
fraud and compliance regulations affecting the international business landscape.
The Solution: Understanding who its clients are is helping the business identify and
stop fraudulent, unauthorized money transfers, thereby addressing a common problem
for financial institutions worldwide. Using a powerful, algorithms-based software
platform, the company has new insight into “who’s who?” “who knows whom?” and
“who does what?” as it analyzes transactions to identify known and unknown people
attempting to move money.
With the solution, the business can quickly identify questionable patterns, proactively
enact processing rules, and quickly become compliant with new regulations, preventing
thousands of customers from losing funds to fraud.
$37.7 million halted
in fraud in one year
40% increase
in ability to identify fraudulent
transactions
72% reduction
in consumer fraud complaints in
one year

28. IBM Smarter Counter Fraud
Closing Remarks and Next Steps
Aaron Glover, IBM Counter Fraud Management
Consultant & Financial Crimes SME
aaron.glover@us.ibm.com

29. Counter Fraud Partner
Joel Thimsen
Director, IBM Smarter Cities Consulting, Perficient

30. Perficient and IBM
30
IBM Counter Fraud
• Perficient SMEs in Financial Services,
Healthcare, and Retail/Consumer
Goods to ensure your success
• Dedicated delivery team focused on
Counter Fraud solutions
• Perficient’s fraud experts have
experience turning intelligence into
action through investigative analytics
• 15+ year history of partnering with IBM
IBM i2
Also experienced in i2 solutions:
• i2 Analysis Notebook Premium
• i2 Enterprise Intelligence Analysis
• i2 Intelligence Analysis Platform
• and more

31. As a reminder, please submit your
questions in the chat box.
We will get to as many as possible.
12/9/2014

32. Thank you for joining us today.
Please fill out the survey at the close of this session.

33. Daily unique content
about content
management, user
experience, portals
and other enterprise
information technology
solutions across a
variety of industries.
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Perficient.com/IBM
Facebook.com/Perficient
Twitter.com/Perficient
For more information contact:
Katie.Hull@Perficient.com