Fraud & Error Risk Detection Tech Can Unlock Company-Wide Efficiencies

Fraud can happen where complexity and inefficiency occur together. For large organisations with global entities, this can be a challenge. Regulatory complexity, disjointed Enterprise Resource Planning (ERP) systems, multi-currency transactions and manual or siloed processes create gaps where fraudulent activity can hide. But they can also be the cause of process inefficiencies that slow the company down.

At Sixthfin, we believe technology should drive efficiency, while also detecting fraud and error risks. Our technology is designed to streamline financial and accounting operations, improve governance and generate data-driven insights. Our automated and AI-driven anomaly detection reduces ineffective checks. This means that fraud and risk errors, such as identifying duplicate invoices, unusual payments and VAT mismatches, can be spotted faster. This in turn gives the finance team more time for investigations, which leads to more secure closing cycles. So, precious time is saved exactly when it is needed most: at month and quarter ends.

Compliance as a catalyst for speed

Improved compliance and governance also drives efficiencies. Measures like UK Economic Crime and Corporate Transparency Act and Sapin II in France will not only protect the organisation, but can be used to create a culture of integrity and produce a more streamlined workflow. These requirements build on the ‘failure to prevent’ idea. Boards now need to prove they had processes in place to root out fraud, or at least identify it early on. Senior teams can no longer claim they didn’t know, so processes and oversight have to be improved.

Proactive risk management vs. reactive crisis

If a fraud event occurs, the senior team switches focus to managing the incident. This can slow up the business, as decision-making is put on hold to co-ordinate a response to the impact of fraud. With Sixthfin technology, continuous monitoring prevents small anomalies from escalating into major fraud cases. We can also accelerate responses with risk-based transaction scoring that automatically prioritises investigations. Early detection not only saves the fraud itself, it also avoids costly regulatory fines, reputational damage, and the operational drag of a full-scale internal crisis.

Data-driven insights highlight inefficiencies

Advanced analytics using AI and machine learning can surface unusual patterns. For example: our technology deploys 300+ built-in controls/analyses to catch weak signals like; duplicate invoices, outliers, late payments, and workflow access issues. It does this across the exhaustivity of your accounting data, whatever the volume of data. Our AI tool can manage different languages, account plans and currencies etc. This means that all your subsidiaries will be analysed in the same way, helping internal audit and control teams to detect risks in countries, in which they don’t have a complete understanding of all the cultural, financial and accounting process and rules. These tools will also offer trend analyses that can inform better vendor management and procurement strategies. In the process of hunting for fraudulent activity our technology can root out inefficiency too.

The cultural impact

There’s a cultural shift that can prevent fraud and improve productivity. Fraud causes operational disruption, which leads to increased inefficiency. Similarly, when policies are loosely defined or enforced by the senior team, employees may rationalise questionable behaviours, leading to gradual erosion of standards. Openly implementing a risk and error tool detection could strengthen the antifraud and corruption culture, as it makes people aware of the company’s position. In addition, anomalies often slow closing cycles by triggering investigations. If this happens repeatedly, it can result in high staff turnover as people look for more valuable work elsewhere.

So how can large corporations meet the challenges of fraud prevention and gain productive efficiencies in the process?

Our recommendations are to:

• Integrate AI analytics-driven tools to automate detection, reduce false positives, and enforce consistency.
• Ensure top-down commitment: harmonisation of practices across the group.
• Prepare for fraud events by designing strong internal controls, response protocols, and remediation.
• Enable Cross-Department Collaboration. Centralise platforms to connect finance, compliance, and control/audit teams, breaking silos and speeding up decision-making.

Fraud detection technology offers more than one benefit. It will spot anomalies, harmonise controls and compliance and free-up the Finance team to concentrate on more strategic work. Isn’t it time you brought company-wide efficiencies to your organisation and improved productivity throughout the global entity?

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