The conference stressed the crucial role of technology in detecting and preventing fraud. Using computers to scan records and make possible fraud connections has shaved investigative processes that would normally take months to complete. One massive data-mining investigation that scanned the billing patterns of medical providers revealed rampant overbilling of laboratory tests. From such experiences in detecting fraud, organizations can implement computer controls to prevent it in the first place. For example, Ohio now instantly checks to see if welfare applicants are fugitive felons at the time of application.
Computer controls can also help deter insiders from fraud.
Our office noted in a recent performance audit that a school district with an extremely high bus parts budget had not fully implemented software to monitor inventory and expenses. We alerted school officials to further investigate. The district discovered that its chief mechanic was involved in a long-time scheme of ordering vehicle parts from a local business, charging them to the district and then selling them on the side. Other technical controls that organizations should consider include maintaining computer security policies, encrypting data, implementing strong passwords and maintaining offsite backup files. It is very possible to reap the efficiencies of computers while maintaining strong fiscal controls.