iAcuity helps investigators trace the flow of funds across multiple accounts

Financial crime and fraud refer to illegal activities that involve deception, dishonesty, or manipulation for personal or financial gain. These activities are typically carried out within the realm of financial transactions, systems, or institutions. Financial crime and fraud can have severe consequences for individuals, organizations, and the overall economy.

Financial crime and fraud can have significant consequences, including financial losses, damage to reputations, and erosion of trust in financial systems. Governments, financial institutions, and law enforcement agencies employ various measures and regulations to combat these activities, including stricter compliance controls, enhanced due diligence, and the use of advanced technologies for fraud detection and prevention.

With so many financial crimes and fraud attacks on the rise across the globe, Gaurav Batheja, CEO, iAcuity Fintech spoke to V&D and shared his insights on ways in which one can recognize an attack, basic financial fraud precautions, how iAcuity contributes towards abating financial crime and much more. Here are some excerpts from the interaction, have a look:

V&D- How does iAcuity help abate financial crime, fraud and risk?

Gaurav Batheja- iAcuity helps abate financial crime, fraud, and risk by providing automated analytics tools that can detect suspicious patterns and anomalies in financial transactions. Our solution helps organizations detect and prevent financial crime and fraud by tracing the flow of funds and identifying potential risks from bank statements.

iAcuity Fund Trail helps investigators trace the flow of funds across multiple accounts. Using bank statements and ledgers, our advanced pattern detection engine identifies anomalies and suspicious behaviours imperative to the investigation. A powerful tool for investigating embezzlement, non-performing assets, ponzi schemes, tax fraudd, money laundering and other financial crimes.

V&D- What is iAcuity’s approach towards combining effective investigation and fraud prevention?

Gaurav Batheja- iAcuity's approach to combining effective investigation and fraud prevention is centred around providing a comprehensive analysis of transactions and detailed understanding of fund utilization. Our suite of advanced analytics algorithms identify suspicious transactions and flow patterns that enable intelligence and law enforcement agencies to detect and investigate fraud.  

V&D-What are iAcuity’s further plans in India in terms of opportunities and challenges in financial crime?

Gaurav Batheja- In India, iAcuity is looking to partner with financial institutions, expand its reach among law enforcement agencies, and other relevant organizations to provide automated forensic audit solutions. We plan to leverage our expertise in advanced data analytics and machine learning to develop more advanced tools and solutions to automate audit and further combat financial crime and fraud.

We also plan to invest in building strong relationships with our clients, providing ongoing support, and working collaboratively to address the challenges associated with financial crime and fraud.

V&D-Do iAcuity solutions Profile Risk across the user session?

Gaurav Batheja- Our application does not profile risk across the user session as it primarily focuses on analysing ingested bank statements and financial data to identify utilisation of funds, end beneficiaries and detect any discrepancies in transactions or accounts. This information is critical for investigations into potential financial crimes or fraudulent activities.

V&D-Does iacuity also provide any solution that helps financial institutions, forensic auditors, and law enforcement agencies identify the exact moment someone begins exhibiting malicious behaviour?

Gaurav Batheja- Our flagship platform, Fund Trail is designed to provide investigators and analysts with a clear understanding of the money trail. This means where money came from and what it was used for. While a majority of law enforcement agencies act after a crime is committed, there are still a few scenarios in which our pltaform can help prevent or reduce the damage of a fraud. Intelligence Agencies can monitor suspicious activities of suspected ponzi schemes, multi-level marketing organisations, or terror groups. The platform can also be used by banks to continuously monitor utilisation of loan funds for corporate clients and identify early signals of misappropriation or siphoning.

V&D-With so many financial crimes, fraud attacks and methodologies on the rise across the globe what are the ways in which one can recognize an attack and are there any basic financial fraud precautions you would suggest?

Gaurav Batheja- Financial crimes and fraud attacks are indeed on the rise across the globe, and businesses need to be aware of the potential risks and take measures to prevent them. Here are some ways to recognize an attack and basic financial fraud precautions that can help mitigate the risk of fraud, including B2B frauds:

• Regularly Monitor Financial Transactions: Businesses should closely monitor their financial transactions and identify any unusual or unauthorized activities. This can be done through regular audits.

• Implement Strong Internal Controls: Strong internal controls are critical in preventing financial frauds. These controls can include segregation of duties, dual authorization for high-value transactions, and strict access controls to sensitive financial data.

• Educate Employees: Employees should be trained on how to identify potential fraud risks and how to report them. This can help to create a culture of vigilance within the organization, making it easier to detect and prevent frauds.

• Perform Background Checks: Businesses should conduct thorough background checks on all employees, vendors, and other stakeholders involved in financial transactions. This can help to identify any potential red flags or fraud risks.

• Stay Up-To-Date On Fraud Trends: Finally, it is important to stay informed about the latest fraud trends and techniques. This can help businesses to proactively identify and prevent potential fraud attacks.

V&D-Does iAcuity also contribute towards identification of any tools in use that are typically associated with fraud?

Gaurav Batheja- Our application cannot identify/highlight any tools that are typically associated with fraud. Our focus is to assist investigators, auditors, compliance officers and analysts make sense of transaction data by providing them with an overview of where money came from and how it was used. Our focus on hyper-automation and big data analytics enables our customers to quickly identify fraud, collect evidence and carry out the judicial process with ease.

V&D- Please provide an overview of your flagship software Fund Trail, the hyper automated forensic audit tool and its growth.

Gaurav Batheja- Fund Trail is a flagship software solution developed by iAcuity Fintech, which is a hyper-automated forensic audit tool designed to help forensic auditors and investigation officers in financial crime investigations. Powered by artificial intelligence and machine learning, Fund Trail uses advanced analytics techniques to analyse large volumes of financial data and identify potential discrepancies or fraudulent activities within transactions and accounts.

The scope of the forensic accounting market in India is steadily growing, driven by factors such as an increase in financial crimes, regulatory compliance requirements, and the need for effective fraud detection and prevention measures. Industry reports indicate that, the forensic accounting market in India is expected to grow at a CAGR of over 9% during the period 2021-2026.

Given the growing demand for forensic accounting services in India, there is a need for advanced technology solutions that can help forensic auditors and investigation officers to conduct effective investigations. This is where Fund Trail comes into play, offering a comprehensive suite of features to analyse financial data and detect potential fraudulent activities.

Since its launch, Fund Trail has gained significant traction in the Indian market and has been widely adopted by various Law enforcement agencies. With the increasing demand for advanced forensic audit tools, the software is expected to continue to experience steady growth in the future.