SAP Takes Aim at US$3.5 Trillion of Fraud

                  SAP Takes Aim at US$3.5 Trillion of Fraud

SAP® Fraud Management Analytic Application to Help Companies Detect Fraud
Earlier for Reduced Financial Loss and Lower Fraud Investigation Costs

PR Newswire

LAS VEGAS, March 19, 2013

LAS VEGAS, March 19, 2013 /PRNewswire/ --To help companies worldwide address
the estimated US$3.5 trillion worth of fraud that occurs every year^1, SAP AG
(NYSE: SAP) today announced the SAP® Fraud Management analytic application.
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, analyze and prevent
irregularities or fraud in "big data" environments. The announcement was made
at GRC 2013, being held March 19-22 in Las Vegas.


The typical organization is at risk of losing up to five percent of its
revenues to fraud^1. In 2011, the total potential projected worldwide losses
due to fraud were $3.5 trillion^1. 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:

  oDetect fraud earlier to reduce financial loss: The application is planned
    to provide real-time detection that leverages the power of SAP HANA and
    offers robust integration capabilities into business systems, along with
    alert notification and management features
  oImprove detection accuracy at less cost: SAP Fraud Management aims to help
    minimize false positives through real-time calibration and simulation
    capabilities on large volumes of data
  oPrevent and deter fraud situations: With the combination of rules and
    predictive methods, SAP Fraud Management is intended to help users
    optimize fraud scenario analysis and adapt measures to changing fraud
    patterns to better prevent fraud

"The rise of big data is forcing organizations 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 organizations 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 makes sense."

A Compelling Case for the Insurance Industry
Fraudulent insurance claims and associated costs are at historical highs. In
the U.S., insurance companies are faced with non-health-related insurance
fraud of more than US$40 billion per year, while the Association of British
Insurers cites more than 2,500 fraudulent claims per week, totaling more than
GPB 900 million per year^2. Insurers can no longer afford traditional fraud
detection methods with low recovery rates. Developed with leading
international insurance companies in a co-innovation development model, the
SAP® Fraud Management for Insurance analytic application is planned to offer:

  oClosed-loop fraud processing: detection and prevention of claim fraud
    across multiple line of business with direct impact on the loss ratio
  oSeamless Integration: real-time information flow between fraud and claim
    processing in both directions to help ensure consistency and optimized
    process flows
  oOptimized Investigation: intuitive functionality and alerts, supporting
    investigators from first fraud signal to final decision

SAP Fraud Management for Insurance is intended to help insurance companies
automate fraud detection, improve fraud investigation efficiency and avoid
payments on illegitimate claim requests.

Savings for Government At All Levels Through Early Fraud Detection
Tax evasion and social services fraud not only hurt the reputation of
government agencies, but contribute to ever-increasing budget deficits. SAP
Fraud Management is planned to help reduce fraud and non-compliance by
cross-checking tax returns or social service applications against millions of
related data records in real time and immediately spotting whether the
submitted applications match information from other data sources. Applying
predictive algorithms from SAP HANA on a large number of transactions aims to
uncover hidden fraud patterns and produce alerts on suspicious transactions
that might be missed by conventional fraud and compliance rules.

"With organizations at risk of losing five percent of their revenues due to
fraud, companies need better analytical tools to identify and prevent fraud
before losses occur and to stay apace with changing fraud behaviors — in real
time," said John Schweitzer, senior vice president and general manager,
Analytics, SAP. "SAP Fraud Management powered by SAP HANA will enable
enterprises in all industries to detect, investigate, prevent and monitor
irregularities or fraud in environments with ultra-high volumes of data, from
both SAP and non-SAP systems. With SAP HANA as its backbone, SAP Fraud
Management aims to bring unprecedented processing capabilities."

For more information, visit the SAP Newsroom.

^12012 Report to the Nations on Occupational Fraud and Abuse, Association of
Certified Fraud Examiners
^2Association of British Insurers

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps
companies of all sizes and industries run better. From back office to
boardroom, warehouse to storefront, desktop to mobile device – SAP empowers
people and organizations to work together more efficiently and use business
insight more effectively to stay ahead of the competition. SAP applications
and services enable more than 232,000 customers to operate profitably, adapt
continuously, and grow sustainably. For more information, visit

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