Tag Archives: ACFE

Crime Tech Solutions Acquires Case Closed Software

June 1, 2016 (Austin, TX)   Crime Tech Solutions, LLC, a leading provider of analytics and investigation software for law enforcement and commercial markets, today announced that it has acquired Cleveland, TN based Case Closed Software in a cash transaction. The terms of the deal were not released, but according to Crime Tech Solutions’ founder and president Douglas Wood, the acquisition brings together two dynamic and fast-growing software companies with an unparalleled complement of technologies.
For Crime Tech Solutions, the opportunity to add Case Closed Software into the fold was too good to pass up” said Mr. Wood. “We think that the technology offered by Case Closed helps to further differentiate us in the market as the price performance leader for this type of investigative solution.PNG

Crime Tech Solutions, based in the city of Leander, TX, delivers advanced analytics and investigation software to commercial investigators and law enforcement agencies across the globe. Their solution suite includes criminal intelligence software, sophisticated crime analytics with geospatial mapping, and powerful link analysis and visualization software. The company says that the addition of Case Closed Software expands those offerings even further.

CaseClosed1Case Closed Software develops and markets investigative case management software specifically designed for law enforcement agencies. The suite is built around four primary software products including best-in-class investigative case management software, property and evidence tracking, a gang database tool, and an integrated link analysis and data visualization tool.

Case Closed couldn’t be happier than to be joining Crime Tech Solutions,” said Keith Weigand, the company’s founder. “The blending of our technologies creates a suite that will add tremendous value to our mutual customers, and will be hard for others to duplicate.

According to both Mr. Weigand and Mr. Wood, the name Case Closed will continue on as the product brand, given its widespread popularity and loyal customer base. Crime Tech Solutions is expected to retain all Case Closed employees, with Mr. Weigand joining as the company’s chief technical officer.

Crime Tech Solutions says it expects continued growth via ongoing software sales and strategic acquisitions.

About Crime Tech Solutions

(NOTE: Crime Tech Solutions is an Austin, TX based provider of crime and fraud analytics software for commercial and law enforcement groups. Our offerings include sophisticated Case Closed™ investigative case management and major case management, GangBuster™ gang intelligence software, powerful link analysis software, evidence management, mobile applications for law enforcement, comprehensive crime analytics with mapping and predictive policing, and 28 CFR Part 23 compliant criminal intelligence database management systems.)

China building big data platform for pre-crime

Re-posted by Crime Tech Solutions – Your Source for Investigation Software

It’s “precrime” meets “thoughtcrime.” China is using its substantial surveillance apparatus as the basis for a “unified information environment” that will allow authorities to profile individual citizens based upon their online behaviors, financial transactions, where they go, and who they see. The authorities are watching for deviations from the norm that might indicate someone is involved in suspicious activity. And they’re doing it with a hand from technology pioneered in the US.

Tiananmen_Square_Beijing_China_1988_1-640x447As Defense One’s Patrick Tucker reports, the Chinese government is leveraging “predictive policing” capabilities that have been used by US law enforcement, and it has funded research into machine learning and other artificial intelligence technologies to identify human faces in surveillance video. The Chinese government has also used this technology to create a “Situation-Aware Public Security Evaluation (SAPE) platform” that predicts “security events” based on surveillance data, which includes anything from actual terrorist attacks to large gatherings of people.

The Chinese government has plenty of data to feed into such systems. China invested heavily in building its surveillance capabilities in major cities over the past five years, with spending on “domestic security and stability” surpassing China’s defense budget—and turning the country into the biggest market for security technology. And in December, China’s government gained a new tool in surveillance: anti-terrorism laws giving the government even more surveillance powers and requiring any technology companies doing business in China to provide assistance in that surveillance.

The law states that companies “shall provide technical interfaces, decryption and other technical support and assistance to public security and state security agencies when they are following the law to avert and investigate terrorist activities”—in other words, the sort of “golden key” that FBI Director James Comey has lobbied for in the US. For obvious reasons, the Chinese government is particularly interested in the outcome of the current legal confrontation between the FBI and Apple over the iPhone used by Syed Farook.

Bloomberg reports that China is harnessing all that data in an effort to perform behavioral prediction at an individual level—tasking the state-owned defense contractor China Electronics Technology Group to develop software that can sift through the online activities, financial transactions, work data, and other behavioral data of citizens to predict which will perform “terrorist” acts. The system could watch for unexpected transfers of money, calls overseas by individuals with no relatives outside the country, and other trigger events that might indicate they were plotting an illegal action. China’s definition of “terrorism” is more expansive than that of many countries.

At a news conference in December, China Electronics Technology Group Chief Engineer Wu Manqing told reporters, “We don’t call it a big data platform, but a united information environment… It’s very crucial to examine the cause after an act of terror, but what is more important is to predict the upcoming activities.”

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(NOTE: Crime Tech Solutions is an Austin, TX based provider of crime and fraud analytics software for commercial and law enforcement groups. We proudly support the Association of Certified Fraud Examiners (ACFE), International Association of Chiefs of Police (IACP), Association of Law Enforcement Intelligence Units (LEIU) and International Association of Crime Analysts (IACA). Our offerings include sophisticated link analysis software, comprehensive crime analytics with mapping and predictive policing, and criminal intelligence database management systems.)

Uncovering Fraud means Uncovering Non-Obvious Relationships

Posted by Tyler Wood, Operations Manager at Crime Tech Solutions

Although no fraud prevention measures are ever 100% foolproof, significant progress can be achieved by looking beyond the individual data points to the relationships between them. This is the science of link analysis.

Looking at data relationships isn’t straightforward and doesn’t necessarily mean gathering new or more data. The key to battling financial crimes it is to look at the existing data in a new way – namely, in a way that makes underlying connections and patterns using powerful but proven tools such as the Sentinel Visualizer software offered by Crime Tech Solutions.

Unlike most other ways of looking at data, link analysis charts are designed to exploit relationships in data. That means they can uncover patterns difficult to detect using traditional representations such as tables.

Now, we all know that there are various types of fraud – first-party, insurance, and e-commerce fraud, for instance. What they all have in common is the layers of dishonesty to hide the crime. In each of these types of fraud, link analysis from Crime Tech Solutions offers a significant opportunity to augment existing methods of fraud detection, making evasion substantially more difficult.

Let’s take a look at first-party fraud. This type of fraud involves criminals who apply for loans or credit cards but who have no intention of ever paying the money back. It’s a serious problem for banks, who lose tens of billions of dollars every year to this form of fraud. It’s hard to detect and the fraudsters are good at impersonating good customers until the moment they do their ‘Bust-Out,’ i.e. cleaning out all their accounts and disappearing.

Another factor is the nature of the relationships between the participants in the fraud ring. While these characteristics make these schemes very damaging, it also renders them especially vulnerable to link analysis methods of fraud detection.

That’s because a first-party fraud ring involves a group of people sharing a subset of legitimate contact information and bogus information, and then combining them to create a number of synthetic identities. With these fake identities, fraudsters open new accounts for new forms of loans.

The fraudsters’ accounts are used in a normal manner with regular purchases and timely payments so that the banks gain confidence and slowly increase credit over time. Then, one day… Poof! The credit cards are maxed out and everyone has disappeared. The fraudsters are long gone and ready to hit the next bank down the road.

Gartner Group believes in a layered model for fraud prevention that starts with simple discrete methods but progresses to more elaborate types of analysis. The final layer, Layer 5, is called  “Entity Link Analysis” and is designed to leverage connections in data in order to detect organized fraud.

In other words, Gartner believes that running appropriate entity link analysis queries can help organizations identify probable fraud rings during or even before the fraud occurs.

 

IBM Crime Analytics: Missing the mark? CTS Hits the bullseye!

quote-one-may-miss-the-mark-by-aiming-too-high-as-too-low-thomas-fuller-10-41-63Posted by Crime Tech Solutions – Your source for analytics in the fight against crime and fraud.

September 7, 2015. IBM announced this week a major update to its IBM i2 Safer Planet intelligence portfolio that includes a major overhaul of the widely used Analyst’s Notebook product. The product, which has become increasingly abandoned by its user base over the past five years, is now being positioned as ‘slicker‘ than previous versions.

IBM suggests that the new version scales from one to 1,000 users and can ingest petabytes of information to visualize. (A single petabyte roughly translates to 20,000,000 four-drawer filing cabinets completely filled with text).

That’s a lot of data. Seems to me that analysts are already inundated with data… now they need more?

This all begs the question: “Where is IBM headed with this product?”

The evidence seems to point to the fact that IBM wants this suite of products to compete head-to-head with money-raising machine and media darling Palantir Technologies. If I’m IBM, that makes sense. Palantir has been eating Big Blue’s lunch for a few years now, particularly at the lucrative US Federal market level. Worse yet, for IBM i2, is the recent news of a new competitor with even more powerful technology.

If I’m a crime or fraud analyst, however, I have to view this as IBM moving further and further away from my reality.

The reality? Nobody has ever yelled “Help! I’ve been robbed. Call the petabytes of ‘slick’ data!”  No, this tiring ‘big data’ discussion is not really part of the day to day work for the vast majority of analysts. Smart people using appropriate data with intuitive and flexible crime technology solutions… that’s the reality for most of us.

So, as IBM moves their market-leading tool higher and higher into the stratosphere, where does the industry turn for more practical desktop solutions with realistic pricing? For more and more customers around the world, the answer is a crime and fraud link analytics tool from Crime Tech Solutions.

No, it won’t ingest 20,000,000 four-drawer filing cabinets of data, and it’s more ‘efficient‘ than ‘slick‘. Still, the product has been around for decades as a strong competitor to Analysts Notebook, and is well-supported by a network of strategic partners around the world. Importantly, it is the only American made and supported alternative. Period. It’s also, seemingly, the last man standing in the market for efficient and cost-effective tools that can be used by real people doing their real jobs.

Using Link Analysis to untangle fraud webs

Posted by Douglas Wood, Editor.

NOTE: This article originally appeared HERE by Jane Antonio. I think it’s a great read…

Link analysis has become an important technique for discovering hidden relationships involved in healthcare fraud. An excellent online source, FierceHealthPayer:AntiFraud, recently spoke to Vincent Boyd Bryant about the value of this tool for payer special investigations units.

A former biometric scientist for the U.S. Department of Defense, Bryant has 30 years of experience in law enforcement and intelligence analysis. He’s an internationally-experienced investigations and forensics expert who’s worked for a leading health insurer on government business fraud and abuse cases.

How does interactive link analysis help insurers prevent healthcare fraud? Can you share an example of how the tool works?

Boyd Bryant: Link analysis is most often used to piece together different kinds of data from multiple sources–to identify key players, connections between those players and patterns of behavior frequently missed. It can simplify an understanding of the level of involvement of individuals and criminal organizational hierarchies and can greatly simplify visualizing and communicating the operations of complex criminal enterprises.

One thing criminals do best is hide pots of money in different places. As a small criminal operation becomes successful, it will often expand its revenue streams through associated businesses. Link analysis is about trying to figure out where all those different baskets of revenue may be. Insurers are drowning in a sea of theft. Here’s where link analysis becomes beneficial. Once insurers discover a small basket of money lost to a criminal enterprise, then serious research needs to go into finding out who owns the company, who they’re associated with, what kinds of business they’re doing and if there are claims associated with it.

You may find a clinic, for example, connected to and working near a pharmacy, a medical equipment supplier, a home healthcare services provider and a construction company. Diving into those companies and what they do, you find that they’re serving older patients for whom multiple claims from many providers exist. The construction company may be building wheelchair ramps on homes. And you may find that the providers are claiming payment for dead people. Overall, using this tool requires significant curiosity and a willingness to look beyond the obvious.

Any investigation consists of aggregating facts, generating impressions and creating a theory about what happened. Then you work to confirm or disconfirm your theory. It’s important to have tools that let you take large masses of facts and visualize them in ways that cue you to look closer.

Let’s say you investigate a large medical practice and interview “Doctor Jones.” The day after the interview, you learn through link analysis that he transferred $11 million from his primary bank account to the Cayman Islands. And in looking at Dr. Jones’ phone records, you see he called six people, each of whom was the head of another individual practice on whose board Dr. Jones sits. Now the investigation expands, since the timing of those phone calls was contemporaneous to the money taking flight.

Why are tight clusters of similar entities possible indicators of fraud, waste or abuse?

Bryant: When you find a business engaged in dishonest practices and see its different relationships with providers working out of the same building, this gives rise to reasonable suspicion. The case merits a closer look. Examining claims and talking to members served by those companies will give you an indication of how legitimate the operation is.

What are the advantages of link analysis to payer special investigation units, and how are SIUs using its results?

Bryant:  Link analysis can define relationships through data insurers haven’t always had, data that traditionally belonged to law enforcement.

Link analysis results in a visual reference that can take many forms: It can look like a family tree, an organizational chart or a time line. This reference helps investigators assess large masses of data for clustering and helps them arrive at a conclusion more rapidly.

Using link analysis, an investigator can dump in large amounts of data–such as patient lists from multiple practices–and see who’s serving the same patient. This can identify those who doctor shop for pain medication, for example. Link analysis can chart where this person was and when, showing the total amount of medication prescribed and giving you an idea of how the person is operating.

What types of data does link analysis integrate?

Bryant: Any type of data that can be sorted and tied together can be loaded into the tool. Examples include telephone records, addresses, vehicle information, corporate records that list individuals serving on boards and banking and financial information. Larger supporting documents can be loaded and linked to the charts, making cases easier to present to a jury.

Linked analysis can pull in data from state government agencies, county tax records or police records from state departments of correction and make those available in one bucket. In most cases, this is more efficient than the hours of labor needed to dig up these types of public records through site visits.

Is there anything else payers should know about link analysis that wasn’t covered in the above questions?

Bryant: The critical thing is remembering that you don’t know what you don’t know. If a provider or member is stealing from the plan in what looks like dribs and drabs, insurers may never discover the true extent of the losses. But if–as a part of any fraud allegation that arises–you look at what and who is associated with the subject of the complaint, what started as a $100,000 questionable claims allegation can expose millions of dollars in inappropriate billings spread across different entities.

Part Two: Major Investigation Analytics – Big Data and Smart Data

Posted by Douglas Wood, Editor.

As regular readers of this blog know, I spend a great deal of time writing about the use of technology in the fight against crime – financial and otherwise. In Part One of this series, I overviewed the concept of Major Investigation Analytics and Investigative Case Management.

I also overviewed the major providers of this software technology – Palantir Technologies, Case Closed Software, and Visallo. The latter two recently became strategic partners, in fact.

The major case for major case management (pun intended) was driven home at a recent crime and investigation conference in New York. Full Disclosure: I attended the conference for educational purposes as part of my role at Crime Tech Weekly. Throughout the three day conference, speaker after speaker talked about making sense of data. I think if I’d have heard the term ‘big data’ one more time I’d have gone insane.  Nevertheless, that was the topic du jour as you can imagine, and the 3 V’s of big data – volume, variety, and velocity – remain a front and center topic for the vendor community serving the investigation market.

According to one report, 96% of everything we do in life – personal or at work – generates data. That statement probably best sums up how big ‘big data’ is.  Unfortunately,  there was very little discussion about how big data can help investigate major crimes. There was a lot of talk about analytics, for sure, but there was a noticeable lack of ‘meat on the bone’ when it came to major investigation analytics.

Nobody has ever yelled out “Help, I’ve been attacked. Someone call the big data!”. That’s because big data doesn’t, in and by itself, do anything.  Once you can move ‘big data’ into ‘smart data’, however, you have an opportunity to investigate and adjudicate crime. To me, smart data (in the context of investigations) is a subset of an investigator’s ability to:

  1. Quickly triage a threat (or case) using only those bits of data that are most immediately relevant
  2. Understand the larger scope of the crime through experience and crime analytics, and
  3. Manage that case through intelligence-led analytics and investigative case management, data sharing, link exploration, text analytics, and so on.

Connecting the dots, as they say. From an investigation perspective, however, connecting dots can be daunting. In the children’s game, there is a defined starting point and a set of rules.  We simply need to follow the instructions and the puzzle is solved. Not so in the world of the investigator. The ‘dots’ are not as easy to find. It can be like looking for a needle in a haystack, but the needle is actually broken into pieces and spread across ten haystacks.

Big data brings those haystacks together, but only smart data finds the needles… and therein lies the true value of major investigation analytics.

Robbing the Casket, What Happens In Vegas, and Railroad Ripoffs: Selected Financial Crimes Snapshot 12/21/2013

To all of our readers… Have a great Christmas season and see you in 2014!

Posted by Douglas Wood, Editor.  http://www.linkedin.com/in/dougwood

Another case of worker’s compensation premium fraud. You may recall my previous post on this subject. It’s worth reading.

http://manasquan.patch.com/groups/police-and-fire/p/owner-of-wallbased-roofing-company-indicted-for-fraud-and-theft

You’ve heard of robbing the cradle. This is robbing the casket, I suppose…

http://www.13abc.com/story/24279926/funeral-home-owner-charged-with-theft-fraud

He’ll have 8 years to choo choo choose a new way to make a living…

http://newyork.cbslocal.com/2013/12/21/8-years-in-prison-for-former-lirr-conductor-in-fraud-scheme/

What happens in Vegas… Stays in a federal penitentiary.

http://www.lasvegassun.com/news/2013/dec/20/man-gets-11-years-15-million-mortgage-fraud-scheme/