Tel: 07976 767732
Stone Trough Cottage
Data mining and Investigation Services
Stonetrough Data Mining provides data mining and investigation services.
Tim Alderson is a qualified Chartered Accountant and has delivered Data Mining and Investigations services for the last nine years. He has been involved in some of the recent large litigation cases in the financial services sector. He has supported Forensic, Corporate Recovery and Investigation Services teams on IT and data mining related matters, particularly on fraud cases, working on assignments with the SFO, FSA, and DTI.
Data Mining can be described as the application of IT technical tools and skills where there is a need to investigate a specific claim, allegation, dispute or concern over integrity, or completeness, of the data within the computer applications. Tim through experience has found the most effective tool for this task to be IDEA.
IDEA is a commercially available software package that was originally written by the Canadian Institute of Chartered Accountants. For further details go to www.auditware.co.uk.
The value delivered
It is the combination of Tim's experience and knowledge of investigation techniques, financial reporting, computerised accounting applications, accounting systems data structures, and the power of the IDEA software application, which supports:
- the recovery of assets
- identifying and evaluating exposure to fraud
- the reduction in the value of claims made against clients
- challenging the validity of claims
Acquiring the data
The first stage of a data mining assignment involves the identification and acquisition of relevant data. This data is analysed to gain an understanding of the financial applications and data structures, using IDEA.
Analysis of the data
The analysis stage of the investigation typically involves:
- reviewing data integrity
- profiling data
- reviewing the completeness of data
- extraction of data populations
- producing and evaluating statistical samples
- reviewing and re-performing the identification and extraction of data populations
- identification, investigation, and evaluation of fraudulent transactions and activity
- the reconstruction of balance sheets based on transaction history
- testing of data for compliance with business rules
- the verification of costs looking for duplicate invoices and payments.
- Comparison of data between two complex asset management systems to prove the accuracy and integrity of the applications in a contract dispute for the appointed expert [claim for £50m]
- Instructed by directors to investigate and evaluate a fraud on a major customer over 7 years. [£3m claim]
- Enabling the recovery of VAT by a liquidator by unravelling the VAT treatment of 24m financial transactions [ £1.5m recovered]
- Defending an international breach of warranty claim for £300m arising out of a fraud on the sale of a business through the recreation of balance sheets for a number of years from the underlying financial transactions for the appointed expert
- Instructed by the compliance officer of a life insurer to review the integrity and completeness of the extraction of policy data from the corporate mainframe
- Reviewed contract terms and transactions to identify and recover costs relating to duplicate invoices and payments and for payments made outside of the agreed contract terms for the head of Internal Audit. [Recovered £3m]
- Instructed by the Association of British Insurers to investigate fraudulent insurance claims [£1m recovered]
- Instructed by liquidator to review the basis of a claim by the analysis of the completeness and integrity of the underlying transactions to support their claim [£20m recovered]
Tim Alderson FCA