Methods and systems for extraction of transaction data for compliance monitoring

Abstract

Methods and systems for extraction of transaction data for compliance monitoring, particularly useful in a system for monitoring electronic transactions of an enterprise and detecting exceptions indicating noncompliance with enterprise policies. Data extractors obtain data from various data sources and provide the data for use by a transaction analysis engine that executes computer-executable compliance policy statements against extracted data. Data extractors include one or more of following: a master extractor, a log extractor, a resync extractor, a programmatic extractor, an environmental source extractor, and an external source extractor. Data extraction is effected by using the master extractor and / or programmatic extractor to extract an initial subset of information about monitored transactions from an enterprise system, and then using the log extractor, the resync extractor, the programmatic extractor, the environmental source extractor, and / or the external source extractor to extract a second subset of information about changed data.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This application is a continuation of copending U.S. patent application entitled “METHODS AND SYSTEMS FOR TRANSACTION COMPLIANCE MONITORING” by Peter H. Kennis, Daniel R. Kuokka, Charles A. Coombs, Stayton D. Addison, Andrew T. Otwell, Jeffrey Z. Johnson, Patrick Taylor, and Michael E. Lortz, having application no. 11 / 085,725, filed on Mar. 21, 2005, which claims the benefit of and priority on U.S. Provisional Patent Application No. 60 / 554,784 entitled “METHODS AND SYSTEMS FOR CONTINUOUS MONITORING OF TRANSACTION DATA FLOW” BY Peter H. Kennis, Stayton D. Addison, Charles A. Coombs, Andrew T. Otwell, and Daniel R. Kuokka, filed on Mar. 19, 2004, the disclosures of which are hereby incorporated herein by reference in their entirety.[0002]This application is also related to and incorporates by reference herein the following U.S. patent applications:[0003]1. Application No. 11 / ______, filed on ______, entitled “METHODS AND SYSTEMS FOR MAPPING...

AI Technical Summary

Benefits of technology

[0029]In one embodiment, the extracted information is stored in a monitoring database. According to an aspect of this embodiment, the step of storing extracted information comprises storing information in a staging database to minimize the computational load on the data source, retrieving the information from the staging database, and storing the extracted information in the monitoring database according to an enterprise ontology.

[0059]From the foregoing, those skilled in the art will understand and appreciate that, with its transaction integrity monitoring, exception detection, analysis engine, and case management aspects, a system constructed in accordance with aspects of the inventions identifies fraud, misuse, and errors that directly affect the bottom line of an enterprise or the operations of an organization. The disclosed system combines the benefits of a systems auditor, fraud examiner, forensics auditor, and an information security specialist that is on duty “24×7” to monitor the effectiveness of internal controls. With its advanced analysis engine, the disclosed system identifies systems-based fraud, misuse, and errors in veritable real time. Rather than relying on periodic audits that sample transaction data, the disclosed system's transaction integrity monitoring identifies a problem the moment it occurs and prevents a perpetrator from covering his or her tracks. By identifying errors, misuse, and abuse in veritable real time, the disclosed system minimizes financial loss by allowing an organization to quickly and decisively respond. In many cases, use of the system allows an enterprise to close a hole before it can be exploited. Finally, with transaction integrity monitoring, the disclosed system empowers enterprises to “trust but verify” its financial transactions. The system allows an enterprise's management team to establish a “tone at the top” regarding expectations of conduct within the organization.

Problems solved by technology

However, automated business systems are subject to errors, misuse, and fraud, just like manual, unautomated systems.

Furthermore, automated business systems can open the door for business “hacks” resulting in asset misappropriation and significant financial losses.

Both intentional and unintentional problems can jeopardize the integrity of transactions and reporting of an enterprise.

Vulnerabilities in electronic transaction systems can: (1) permit access to target business applications to launch fraudulent schemes, (2) unknowingly introduce system errors that affect asset appropriation, such as create duplicate payments, or (3) allow system control to be overridden or circumvented, which then provides others the opportunity to abuse or misuse the system to commit fraud.

Present day financial controls of modern business enterprises do not do enough to mitigate business risks from fraud and error within the organization.

According to reports from the Association of Certified Fraud Examiners (ACFE), fraud and white collar hacks collectively drain 6 percent of a typical business enterprise's annual revenue.

Failure to establish and abide by some government-imposed requirements can result in criminal as well as civil penalties, so many businesses and other organizations are scrambling to establish policies and compliance monitoring systems.

The real-time nature of information, analysis, decision-making, and policy validation creates additional complexities in financial controls and compliance monitoring.

In the process of exploring automated monitoring systems, many enterprises are facing tradeoffs between stringent controls, operational efficiency, and business risk.

While stringent systems controls may stop a small percent of insiders who intend to defraud the enterprise, stringent controls place a heavy burden on the vast majority of insiders who are honest.

However, prior efforts to provide efficient and effective automated transaction monitoring systems have not been entirely successful.

Such limited approaches are watchful of only a small percentage of transactions on a computer system.

Problematic issues in areas outside of the monitored fields can be overlooked though such issues may result in problems in seemingly non-critical transactions, may affect critical transactions with subtlety, and may result in disperse adverse affects that amount in summations to problems deserving attention but that may go undetected.

Images