How a Specialty Coatings Manufacturer
Reduces Travel and Entertainment Expense Fraud

 

The Challenge

Challenge

With over 10,000 annual corporate travelers, the Specialty Coatings Manufacturer wanted to assess which of the T&E expenses submitted may be improper, non-compliant, abusive, or fraudulent.

Solution

The SCM had a large amount of T&E data so they leveraged Angoss software to conduct an outlier analysis where they were able to successfully leverage their data to identify key patterns and insights.

Results

The SCM is now able to prioritize efforts and reduce analysis time and more effectively control T&E expenses.

The Company

A US manufacturer of specialty coating and products with over 5 billion dollars in annual revenues catering to industrial and consumer markets.

The Challenge

With over 10, 000 annual corporate travelers, the Specialty Coatings Manufacturer (SCM) had one primary goal:

  • Expand their very limited ability to assess which of the travel and entertainment (T&E) expenses submitted may be improper, non-compliant, abusive, or fraudulent

This SCM accumulates over $120 million a year in T&E expenses, and wanted to eliminate unnecessary incurred costs.

The Solution

The SCM had a large amount of T&E Expense data to be mined. The company combined this with other internal data sources such as employee, corporate, and identified fraud and abuse data, to populate an analytical data mart. The company used Angoss software to conduct an outlier analysis and was able to:

  • Identify and rank-order individuals and claims with the highest risk of abnormal behaviours
  • Use three primary modeling techniques to identify potential fraud and abuse within their data:
    • Individual patterns: an individual’s expenses are compared to themselves over time against their typical behaviour
    • Group behaviour: An individual’s expensing habits are compared to those of their peer group
    • Fraud detection: Information from credit transactions is compared to the information entered into the expense tracking tool
  • Automatically rank individuals with highest risk of abnormal behaviours

The company successfully leveraged their data to identify key patterns and insights.

The Result

The team used Angoss software to expand their ability to assess T&E data, and as a result, saw several beneficial outcomes:

By automatically ranking individuals with highest risk of abnormal behaviours, the company is able to prioritize efforts and reduce analysis time and more effectively control T&E expenses.

 

“This tool is unique in that it can show the behaviour of people graphically, allowing me to quickly target people of interest based on behaviour and a risk rating”

– Client User

 

About Managed Services

Angoss hosted and managed cloud solutions deliver predictive and prescriptive analytics in the Cloud providing rapid time to value and reduced IT investment without the need for highly specialized human capital and technology. Our fully hosted and managed cloud offerings are versatile and designed to be used across all industries. Angoss Services enable actions and cultivate revenue growth through a secure and scalable infrastructure. We make it possible for our clients to soar above the competition by targeting the right customers that are likely to have an impact on company profits.

Unlock the valuable customer intelligence in your data. Speak to one of our solutions specialists now.

 

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