Helping Government Make Faster, Better Decisions:

Improving Decision Making and Investigations with Analytics

Robert GriffinVice President

IBM Industry Solutions

Campbell RobertsonProgram Director - Public Sector

IBM Enterprise Content Management

Robert GriffinVice President IBM Industry Solutions

3

Challenges Faced by Government Agencies

Reduce and eliminate fraud and abuse Prevent improper payments from errors Facilitate multimodal communication Enhance employee productivity Identify and eliminate weak internal

controls Manage the growth in benefits program,

especially the increased volume of data Reduce administrative costs

Pressures Continue for Federal Agencies

Transparency &AccountabilityTransparency &Accountability

Decision-qualityInformationDecision-qualityInformation

Global SecurityChallengesGlobal SecurityChallenges

Deliver Effective Public SafetyDeliver Effective Public Safety

Need for HighPerformanceNeed for HighPerformance

Ongoing BudgetPressuresOngoing BudgetPressures

Challenges are Becoming more Sophisticated and Are Hidden by Data Challenges

VV11

VV22

VV33

VV44

VolumeVolume

VarietyVariety

VelocityVelocity

• Data types• Analytical Methods• Data types• Analytical Methods

• Available data• Accessible sources• Available data• Accessible sources

VeracityVeracity

• Data flow• Decision making• Data flow• Decision making

• Data accuracy• Information integrity• Data accuracy• Information integrity

Distinguishing Fraudulent Activities from Legitimate Activities

Visualization Best Practices

Leverage best of breed visual analysis capabilities to improve analyst results, reduce costs and speed time to value

Big Data Platform &

Content AnalyticsExploit all of your data directly from your visualization toolset

Best Practice

Best Practice

Leverage content analytics to exploit unstructured data

Best Practice Best Practice

Content Analytics Enables Agencies to Ingest, Search, and Analyze Unstructured and Structured Data from Multiple Sources

Content Analytics for Public Safety Enables agencies to ingest and analyze

investigative documents

Correlation of data Correlate unstructured information (reports,

notes) to structural systems

Analysis of unstructured information Derive and identify new trends, patterns and

anomalies

Connections between structured and unstructured data

Provide a 360-degree view of suspects and relationships

Advanced analytical features Semantic searching, risk alerting, SNA etc… help turn volumes of data into a wealth of insights

TA European-based law enforcement agency used IBM Content Analytics as part of major pedophile investigation. Agency applied IBM Content Analytics to combination of web social network data and seized computer data to analyze relationships between members of pedophile ring.

Intelligence Analysis and Content Analytics

Fraud Intelligence AnalysisFraud Intelligence Analysis• Any data source• Risk scorecard• Cross channel analysis• Multi-stakeholder

investigation• Role based briefing

Rapidly Derived Insight

Analyzeand Visualize

Searchand Explore

Aggregateand Extract

Content Analytics• Configure raw internal and

external content• Process with natural language

processing, enhanced content analytics

• Understand trends, patterns, correlations, anomalies, more

Visualize suspected fraud characteristics Visual analysis using entity link tools Detection and forensic analysis Search/mine structured & unstructured

sources Investigation/enrichment of intelligence Intelligence dissemination, reporting

Enhances visualization applications Search, analyze and extract entities from

unstructured data and deliver normalization tools Discover suspicious patterns in unstructured data Flexible search, visualization and exploration across

structured and unstructured data Analytics on identities and relationships pre-

calculated and perpetually updated Scales to big data volumes and available for real-time

text and content analytics

11

Campbell Robertson Program Director - Public SectorIBM Enterprise Content Management

Today Can You Prove and Sustain …

• Impartiality?• Integrity?• Productivity?• Quality?• Compliance?

Can youmeasure success?

Case ManagementThe Integration and Synergy of Multiple Platforms

Source: Forrester Research.

Enterprisecontent

management(ECM) suites

Adapt to policies and automate decisions

• Document management• Records management• Citizen communications

management

AnalyticsAdapt to business needs

for analysis and reporting

• Analytics• Business activity monitoring

(BAM)• Information as a service

User experienceAdapt to the

context of user,task and process

• Information workplace• Social computing• Rich Internet application (RIA)

Businessprocess

management (BPM) suites

Adapt and automate business processes

• BPM• Business event

management

Casemanagement

Content creators•Employees•Public Sectors•Policy analysts•Public Sector-to-Public Sector (G2G) systems•Citizens•Exceptions

Content consumers•Employees•Government•Managers•Supervisors•Citizens•Auditors

Content stores•Repositories•File cabinets•File servers•Email archives•Enterprise resource planning (ERP) systems•Web servers•Wikis and blogs•Databases•Storage devices

Content types•Social media•Documents•Images•Web forms•Video and audio•Email•Mobile applications•Business applications•Structured data

The Staggering Complexity ofEnterprise Content

Fraud Identification and Investigation Has Many Challenges to Overcome

Pro-Active InvestigationIdentifying high risk fraud and at risk internal controls within an organization. Policy and Process assessment and automation. Improving data governance strategy and automation of rules to mitigate risk.

Reactive InvestigationsAutomation of investigation procedures. The need to provide a collaborative environment to co-ordinate all forms of evidence. Support decision making in prosecution documentation. Interviews and material management.

Pattern IdentificationIdentify type of fraud: Duplicate Fraud, Multi-payer; shell-game; defective goods; defective service need to use technology to be more flexible in identifying pattern and type in order to properly investigate activity.

EvidenceEvidence gathering is key. The need to assess data, transactions, terms, times, contracts, video, social media, audio, records is critical. Technical capabilities are needed to aggregate.

The Challenges of Addressing Fraud Enterprise data is stored across many disparate systems; and data

volumes are large (and growing)

Fraud is perpetrated across multiple channels (online, mobile, call center, cross-brand) and possibly includes insider collusion

Investigation is only possible by joining all relevant information – both structured and unstructured -- and presenting it in actionable, easy-to-digest format

The investigation must be completed quickly to minimize the costs (fraudulent payments, internal investigation costs and costs of recovery)

The Investigation Process Is Rife with Challenges High operational cost chasing too

many false positives

Inefficiencies in coordinating investigations

Difficulty in tracking, limited visibility to cases

High resource needs to collect and assimilate information/evidence

Investigate

Case management and visualization tools to aid investigators in building a case against fraudsters.

Today: Special investigations unit with manual adjusters

Detect

Detect if a transaction is likely a willful act to achieve financial gain through misrepresentation and/or falsification; and take steps to stop or send to Investigation

Today: Relies heavily on people to detect

Discover

Continuous comparison of customer, account or transaction data to the data of cases known to be fraudulent in order to identify fraud that was not previously detected

Today: Not really done

Prevent

Intervene if it appears the main purpose of the activity is to provide benefit to a fraudster

Today: Little is done to prevent fraud from occurring

IBM’s Vision for Fraud Analytics

Report/MonitorReport/Monitor ModelModel

LearnLearn

Build a case for prosecution or denial

of benefits

Detect fraud once it is reported – and react accordingly

Discover fraud after it occurs

Discover Detect

PreventInvestigateStop fraud before it is reported

Fraud analytics

* New Announcement - IBM Investigation Management

The three main components of the solution: IBM Case Manager IBM i2 Fraud Investigation Analysis IBM Content Analytics

Combined to provide, a powerful, integrated set of capabilities for managing investigations

IBM Intelligent Investigation ManagerIBM Intelligent Investigation Manager

IBM Intelligent Investigation Manager

IBM i2 Intelligent Analysis Platform

ICM Investigation Services

Case Manager Plugin

IBM i2 Analyst’s Notebook (iANB)

IBM Case Manager

I2 investigation services

Intelligent Investigation solution pkg

IBM i2 Fraud Investigation AnalysisIBM i2 Fraud Investigation Analysis

IBM Content Analytics

Providing Forensic Analysis Capabilities in the Context of an Investigation

Analysts are able to move through massive amounts of data – structured and unstructured, across lines of business, internal and external

Analyst can create visualizations that highlight the scope of the fraud, generate investigative leads, and provide evidentiary documentation

Analyze Explore for trends and patternsAggregate historical cases• Criminal case files• 911 reports• Police reports• Witness

statements• Evidence

descriptions• Forensic reports

Text descriptions of crime, motive and perpetrators’ actionsCase management

Crime and perpetrator data

Deliver business analytics

Take action based on derived insight

Discover

FraudFraud

Healthcare Provider Fraud

Vendor Risk Management

Claims / Benefits Fraud

Medicare / Medicaid Fraud

Financial Crimes Framework

Public SafetyPublic SafetyIntelligent Law Enforcement

Suspicious Activity Investigation

Advanced Intelligence

IBM SPSS

IBM Identity Insights

Predict & Identify Investigate, Analyze, & Manage ReportPredict & Identify Investigate, Analyze, & Manage Report

IBM fraud management platformIBM fraud management platform

IBM Cognos

IBM Case Manager

IBM Content Analytics

IBM i2 Fraud Intelligence Analysis

IBM Intelligent Investigation ManagerIBM Intelligent Investigation Manager

Financial

Operational Data SourcesOperational Data Sources

HR

Claims Case History

Informants / TipstersInformants / Tipsters

Social Media

Nat/Reg Data

Emails

Structured / Unstructured Data Source examplesStructured / Unstructured Data Source examples

Documents

WWW

StreamsDataDataOther AppsCRM PEP

OFACERP

Intelligent Investigation ManagerCritical Capabilities for Delivering Solution Value

IBM i2

IBM’s Unparalleled Capabilities in Security and Fraud

Industry Recognition

2011 Top Analytics and Business Intelligence Service Provider (Gartner Group)

2010 Best Security Company (SC Magazine) 2011 Dynamic Case Management Strategy Leader (Forester Report)

Broad and Deep Domain Expertise

Broad expertise & experience across all of Financial Crimes (AML, Fraud, Case Management, Sanctions, Governance, Enterprise Risk, Identity and Access Mgmt)

Tested reference models for financial crimes (architecture, workflows, business processes, risk assessments, scoring models, scenarios, IAM)

Proven IBM-WWPMM project management methodology System Implementation Accelerators

Capabilities and Experience

1500 Risk & Compliance consultants globally who have actually developed parts of the key solutions in the industry

125-person Risk and Compliance CoE 100-person Analytics CoE, 75% of whom had graduate or Ph.D. level degrees in related fields, growing at 25% annually

7 IBM Research Labs worldwide, producing cutting-edge analytical methods and solutions

9 Security Research Centers (two more under construction) and 11 Security Development Labs

Over 900 Professional Security Consultants

For Additional Information

Visit the Agile Summit Solution Center for demonstrations of these capabilities.

Ask an IBM Ambassador for additional information (case study, white paper, solution brief, etc.) related to the content shared during this session.

For a follow up discussion, complete the IBM Response Card on the table in front of you.

Thank You !Robert GriffinVP Industry SolutionsIBMgriffinb@us.ibm.com

Campbell RobertsonProgram Director - Public SectorIBM Enterprise Content Managementcir@ca.ibm.com

®

© 2012 IBM Corporation

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May 2012

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