PwC has used Suspicious Transaction Analysis (STA) as a tool to detect potential fraud in financial data for numerous years. The processes and methodology surrounding this tool have been tested and refined over time. Development of this tool set is ongoing to meet the demands of the constantly evolving business community. The exponential increase in data stored in financial systems and corresponding complexity of this data has also driven the need to find new ways to identify suspicious transactions.
Generation 2 STA uses methodology and tools that have been developed using our global resources. The backend platform is based on an Oracle database. The platform uses complex algorithms to identify potential fraud and other data errors. As each data set is unique the STA product is infinitely customisable to meet the needs of our clients. Our fraud detection servers are located in Australia, Indonesia, Hong Kong, USA, UK and South Africa. STA2 is a fraud detection and data analysis process which searches through millions of transactions within financial ledgers to identify any transactions that meets a criteria deemed as suspicious.
For a transaction to be deemed suspicious it must meet certain criteria. This criteria has been developed by our investigation fraud specialist working with our experienced forensic accountants. Transactions that meet our suspicious transaction criteria warrant further investigation. STA2 complements a company’s existing schedule of audit and control tests, making the best use of valuable, and often scarce, resources. It is a tool which identifies problem areas, particularly in a company’s purchasing, payment and expense records, which are high risk areas in many organisations.
Transactions that may be identified as suspicious include:
- Collusion between suppliers and employees
- Suppliers and customers fitting known fraud profiles
- Questionable transactions and payments
The methodology used in STA can also be used for other data sets such as those used widely by companies to secure their environment. Ea. analysis such as customer accounts, insurance claims, bank transactions and inventory movements.
How PwC can help you
Our STA methodology has been proven over many years of use with clients. We have ongoing communication with our overseas colleagues to refine out methodologies and techniques. This constant refinement of our technology is passed on to you to bring you the latest in fraud detection analysis irrespective of whether you are a multinational organisation or a local organisation. Our comprehensive, confidential service can analyse all types of electronic data, regardless of the software that produced it.
STA is a product that can be used across all industry sectors. It has been found to be particularly beneficial when conducted in conjuction with annual audits. While an annual STA allows clients to regularly identify transactions of interest, it also allows clients to determine if control or process changes, made as a result of a previous STA, have been beneficial.
