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Author's profile photo Christian Gschloessl

SAP Fraud Management@HANA

SAP Fraud Management is a cross industry solution to analyze, detect, investigate, and prevent fraud and irregulatories in ultra high data environments. It targets both internal and external fraud scenarios that can be based on SAP and non SAP data sources.

Exemplary Internal Fraud Cases

  • Suspicious payments to vendors (conflict of interest in procurement)
  • In appropriate HR payments (bonuses, salary increases)
  • Abuse of payment cards (eg. patrol for company cars)
  • FCPA (foreign corrupt practices act)
    • Each stock listed company needs to have processes and systems in place to avoid bribery and have transparency about payments
    • Violating the law leads to very large fines

Exemplary External Fraud Cases

  • Insurance: Claims Management eg. car insurance
  • Public Sector: Tax related fraud
  • TelCo: Stolen SIM-Cards
  • Retail: Online shops
  • Banking: Anti Money laundering, Sanction List Screening

Fraud management enables companies to detect fraud quicker in order to prevent financial damage.

Key benefits are:

  • Early fraud detection
  • Quick investigation
  • Continuously improvement
  • Fraud Prevention

Why HANA makes a difference:

  • Detection not only in batch mode but realtime: -> seamless integration into business processes
  • Calibration and simulation of rules in realtime on productive data in order to iteratively optimize rules
  • Predictive capabilities on full data volume and not only on data subsets
  • Fuzzy Search capabilities eg for high volume address matching
  • Native full text search in unstructured data

Take a look at SAP official Overview Video:

http://www.youtube.com/watch?v=L_NiH6D28Z0

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      10 Comments
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      Author's profile photo Former Member
      Former Member

      Christian,

      Thanks for sharing this news; the features certainly look promising. I did not see any release info in the video. Is this new component part of the GRC 10.1 that is currently in ramp-up?

      Thanks,

      Gretchen

      Author's profile photo Christian Gschloessl
      Christian Gschloessl
      Blog Post Author

      Hello Gretchen,

      SAP Fraud Management 1.0 is a own product.

      It is a stand alone solution on HANA which works on real time replicated data.

      At the moment SAP Fraud Management 1.0 is in ramp up since February.

      If you need further information, please contact me.

      Best Regards

      Christian

      Author's profile photo Suvonkar Bashak
      Suvonkar Bashak

      Hello Christian,

      Is SAP Fraud Management 1.0 going to detect malicious transaction in real time as it going to be powered by HANA, or its going to act as a detection tool after the Fraud have already occured, like an Auditing tool.

      What kind of knowledge is pre-requisite for gaining expertise in SAP Fraud Management, is Financial experiance a must.

      Regards,

      Suvonkar Bashak

      Author's profile photo Christian Gschloessl
      Christian Gschloessl
      Blog Post Author

      Hello Suvonkar,

      SAP Fraud Management works on real time replicated data coming from a source system. It will detect old as well as new fraud cases, which can lead to immediate actions as e.g. blocking purchase order execution. The detected fraud cases can be input or trigger for an audit.

      SAP Fraud Management is a generic tool which delivers in the first release content (detection rules) for insurance and public sector. So you do not have to have esspecially financial experience.

      Best Regards

      Christian

      Author's profile photo Former Member
      Former Member

      Hi Suvonkar,

      Please check below link for SAP Fraud Mangement:

      http://help.sap.com/fra

      Regards,

      Dinesh

      Author's profile photo Jerome Pugnet
      Jerome Pugnet

      Just to be clear

      It is marketed as part of GRC, but does not follow the 10.1 version like other solutions, and it had its own versions (1.0 then now 1.1) and separate ramp up (now ended we are GA)

      I can be sold stand alone, but can also be a good addition to other GRC apps for a GRC customer (adds forensic detection, fraud investigation, prevention capabilties and option to bring in predictive analytics to help prevent new types of fraud....)

      Author's profile photo Former Member
      Former Member

      Does SAP Fraud Management come as part of GRC,

      can SAP FM can be implemented independently

      can SAP FM be implement for  non-SAP systems

      thanks

      Author's profile photo Christian Gschloessl
      Christian Gschloessl
      Blog Post Author

      Hello Rao,

      SAP Fraud Managemnt is a stand alone solution which is delivered on HANA and which can be implemented separately.

      Best Regards

      Christian

      Author's profile photo Jerome Pugnet
      Jerome Pugnet

      But please note SAP Fraud Management is marketed as part of SAP GRC! So YES it is part of GRC. Christian, we need to be crystal clear on this; it is been so for almost a year now.

      (sorry I had missed these conversations back this summer)

      FM is very interesting for GRC customers to add, especially of they use Process Control as fraud prevention is also about putting ad hoc controls and policies in place, and idenified fraud cases in FM can be interfaced into PC to be processed into the issue management worflow, so that they can be remediated, which often involves improving fraud controls and /or policies in place, or adding new controls or policies...

      Now, if the customer does not have any other GRC app, yes FM can be sold stand alone.

      Hope this is now 100% clear 🙂  

      Author's profile photo Jerome Pugnet
      Jerome Pugnet

      Please also refer to the Fraud Management page of the SAP Corp Portal - good info to start with and links to key sources of detail info, sales tools and marketing assets:

      https://portal.wdf.sap.corp/irj/portal?NavigationTarget=navurl://bbfa20f82c1f657c0b132f4620b7a59a