Identify collusion with Vendor during contract award using pattern analysis
The Client – The client is a well-known infrastructure company headquartered in New Delhi.
The Scope – The company awards about 1000 contracts a month across all business units. They wanted to identify suspicious transactions so that in-depth investigation can be done for about 5% of all transactions.
The Solution –
Our analysis included
- Detection of related-party transactions and conflict of interest during Contract award
Detection of information leakage during Contract award process by looking at bidding pattern
Identification of split contracts and purchase orders (Multiple orders to a Vendor within a short period of time)
Contract awarded to Vendors with past quality issues (in another location or unit)
Identification of suspicious transactions through a group of indicators. For e.g : Big order awarded to small Vendor
The Outcome –
Early Identification of potential fraud of significant value using data analytics (Use to take 1.5 years instead of weeks)
Proactive investigation of suspicious cases instead of re-active investigation