German multinational software corporation SAP AG has announced the launch of the SAP Fraud Management analytic application, to help companies worldwide address the estimated $3.5 trillion worth of fraud that occurs every year.

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, analyse and prevent irregularities or fraud in “big data” environments.

The typical organisation is at risk of losing up to 5 per cent of its revenues to fraud. In 2011, the total potential projected worldwide losses due to fraud were $3.5 trillion. 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, improve detection accuracy at less cost, and prevent and deter fraud situations, a statement from the company said.

“The rise of big data is forcing organisations 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 organisations 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 make sense.”

“SAP Fraud Management powered by our cutting-edge in-memory technology, Hana, will afford organisations 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 5 per cent 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.” – TradeArabia News Service