aveshka brief - oa nyc meetup
TRANSCRIPT
From Information to Intelligence:
The Power of Social Media to Manage
Financial Risk
May 23, 2013
Scott SchneidermanPrincipal
Innovative Analytic SolutionsAveshka, Inc.
Introduction
“One emerging area of concern… is the use of social media to support fraudulent schemes
bringing what are called boiler room scams into chat rooms, Facebook pages, Twitter feeds, and
your inbox.”
SEC Chairman Elisse WalterApril 1 2013
Financial Risks Abound
Enron
Adelphia
Tyco
QWest
Bernard Madoff
Societe Generale
MF Global
SAC Capital
JP Morgan Leak
2013
2001
Rogue Trading
Ponzi Schemes
Insider Trading
Leaks or Loss of IP
Accounting Fraud
Pump-&-Dump Schemes
Identity Theft
The financial risk environment has
become more varied and complex
over the past decade.
A Network View of Financial RiskWe use relationship mapping and cognitive modeling to
visualize complex event relationships and identify previously
unknown or hidden events, entities, and interactions.
Fraud
Netw
ork
Network Complexity Can VaryFinancial risks exist across a spectrum of network complexity.
The more complex the network, the greater the opportunities for
detection and interdiction.
Lon
ewo
lf
Rogue Trading
Leaks or Loss of IP
Pump-&-Dump Schemes
Insider Trading
Accounting Fraud
Ponzi Schemes
Social Network and OS Indicators
• Frauds arise from business and social networks
• Social Media and OS indicate potential relationships
Traditional Social
Media Sources
Social Media and OS CollectionNew technologies and techniques allows an analyst to query data from
multiple databases rapidly and comprehensively to provide information
awareness and reveal hidden relationships
Common Indicators
Fraud Network
“Trusted” Relations
Off-the-Books
Enablers
Front Companies
Serial Fraudsters
Off-the-Books
Beneficiaries
Fraud networks have common risk factors that can inform due diligence
assessments or investigations.
Aveshka conducted a 1-week study of the company to find relationships for further investigation
Swiss investment bank provides partial or incomplete names of two companies and two individuals
Aveshka hired to investigate one of the largest bankruptcies in Swiss history
Swiss Case Study
Aveshka-provided intelligence is supporting the recovery of > $10 million
Complex Social Network Analysis
10
Travel Patterns
Risk by Company
From Information to Intelligence
13
In summary, social media monitoring and analysis can help organizations manage financial risk leading to:
Informed Investment Decisions
Protection of IP
Time Saving Through
Automation
Proactive Brand
Management
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SCOTT SCHNEIDERMAN
PRINCIPAL
INNOVATIVE ANALYTIC SOLUTIONS
KELLI COOPER
INTELLIGENCE ANALYST
INNOVATIVE ANALYTIC SOLUTIONS