In Context, by Doug Henschen
Doug Henschen joined Intelligent Enterprise as Editor in 2004 and was named Editor-in-Chief in January 2007. He has specialized in covering the intersection of business intelligence, performance management, business process management and rules management technologies within enterprise applications and architectures. See More by Doug Henschen Routine Fraud Detection Fingered Spitzer
Posted by Doug Henschen "Follow the money." This approach to investigation, applied by criminal prosecutors going back before Eliot Ness and made famous as a line in the movie "All the President's Men," is exactly how soon-to-be-ex New York Governor Eliot Spitzer was tied to a high-end prostitution ring. In this case it was fraud detection technology, of the kind routinely applied by banks in money laundering investigations, that led directly to Spitzer and to his resignation. "Internal Revenue Service investigators conducting a routine examination of suspicious financial transactions reported to them by banks found several unusual movements of cash involving the governor," reported the New York Times in this story. "The transactions, officials said, suggested possible financial crimes — maybe bribery, political corruption, or something inappropriate involving campaign finance. Prostitution, they said, was the furthest thing from the minds of the investigators." The Times followed up today with this story, which explains that "employees at a large New York bank detected... Gov. Spitzer was moving around thousands of dollars in what they thought was an effort to conceal the fact that the money was his own." The Times didn't detail whether these two banks employed analytic models, rules-based filtering, complex event processing or some combination of the above, but you can rest assured that the initial flag was raised in a purely automated fashion. It's a good question whether this particular set of flags would have ever been investigated had Spitzer's name not turned up, but the Feds were then obliged to investigate what otherwise involved "apparent sleight of hand [that] kept transactions small." E-MAIL | SLASHDOT | DIGG This is a public forum. CMP Technology and its affiliates are not responsible for and do not control what is posted herein. CMP Technology makes no warranties or guarantees concerning any advice dispensed by its staff members or readers. Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of CMP Media LLC and may be edited and republished in print or electronic format as outlined in CMP Technology's Terms of Service. Important Note: This comment area is NOT intended for commercial messages or solicitations of business.
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