The ACFE 2024 Anti-Fraud Technology Benchmarking Report

·26 min·2 clips

Matt Kelly reveals that 83% of anti-fraud professionals expect to use generative AI, but only 25% target corruption.

Tom Fox introduces the episode by stating he and Matt Kelly will dive into the ACFE 2024 Benchmarking Technology Report to extract lessons for fraud risk management and compliance practitioners. Matt Kelly explains the report comes from the Association of Certified Fraud Examiners and is based on a poll of their membership, with over 1,200 respondents globally. He notes two big takeaways: how anti-fraud professionals plan to use AI in the future and how they currently use anti-fraud technology. Matt highlights that 83% of respondents expect to use generative AI in the next 2-5 years, while only 25% use analytics to root out corruption and bribery. Tom Fox points out that corruption typically accounts for about 20% of fraud in ACFE's broader reports, so the 25% figure isn't surprising. The hosts then discuss concerning statistics: 57% of organizations don't use case management software, 71% don't use digital forensics or e-discovery software, and 67% don't use online evidence capturing software. Matt suggests some of this may be due to smaller companies in the survey, but argues larger companies without these tools are managing investigations manually, which is problematic. They turn to the types of data analyzed, with 76% of anti-fraud teams looking at internal structured data, but only around 30-33% examining internal unstructured data or external social media data. Matt emphasizes that unstructured data like emails and employee chat rooms often contain crucial evidence for fraud and compliance issues. Tom proposes the report could serve as a roadmap for compliance professionals to improve data access and tools. The conversation shifts to how humans use technology, noting that 70% of respondents rely on exception or anomaly detection, which flags items for human review. Matt warns that as AI improves, it may flag too many anomalies, overwhelming human reviewers, similar to challenges in anti-money laundering. They discuss the need to align AI capabilities with human resources and judgment. Tom adds that while financial institutions face sanctions for inadequate AML staffing, compliance officers might respond more quickly to corruption risks due to higher penalties. The episode concludes with the hosts framing the central challenge: balancing AI efficiency with human judgment across fraud, corruption, privacy, and cybersecurity risks, with choices between hiring more humans or leveraging AI to bridge gaps.

As heard by us

A clear, practical look at how fraud and compliance teams can use a technology benchmark to assess their gaps.

Compliance Into The Weeds uses the ACFE 2024 Benchmarking Technology Report as a way to talk through where fraud risk and compliance teams are moving with AI and LLMs.

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Why you'd press play

You want to know whether your fraud program is ready for AI, LLMs, and investigations that may be getting too manual to scale.

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