Red Flag Fraud Examination and Prevention Tools

The Red Flag Fraud Examination tool is a "simple to use" graphical user interface tool developed to provide a fast clear picture of financial data analytics.

Designed by a fraud examiner for fraud examiners, the current version will analyze large data files for duplicate numerical entries and apply Benford's Law to the first three digits of every numerical record. It will separately analyze the positive and negative numbers. It allows you to save the Benford's gragh as an image file for future reference, rather than having to re-run the tool on your data.This also makes it easy to add as an exhibit to the examination file.

Benfords Law

Benford’s Law analyzes the digits in numerical data, helps identify anomalies, and detects systematic manipulation of data (the making up of false numbers) based on the digital distribution in a natural population.

Benford's Law is based on the Natural Logarithm of digit distribution and the digital distribution is not evenly distributed. Let's take a look with a short video demonstration.