Create Mousetrap

The Create et All developed a web-based fraud detection application called “Mousetrap” that allows an analyst to detect possible instances of corporate fraud, either at the company or executive level, through the use of Dun and Bradstreet data sources. Mousetrap allows the user to review possible fraudulent activity by identifying high-risk companies within a geographic location. Mousetrap then displays the highest risk companies by based on a composite rating of several D&B data sets. For our application, we selected the following data sets as we feel they establish several key risk indicators that can be rolled up into a composite rating to establish risk profiles.

The D&B Scores are converted to weights and used to intensify the Map Icon. The Map Icon weight can be composited by user selection of different Fraud Filters. Thus the weightings based upon the D&B data can be selected to limit the amount of data displayed.

Fraud Risk Score – The Fraud Risk Score is a metric calculated by D&B that considers credit application data and compares it to previously identified fraudulent characteristics and behaviors. The Fraud Risk Score ranges from 1-5 (low to high) and provides a relative measure of risk when comparing a company’s activities to their peers. Within the context of the composite rating a high fraud risk score will reflect negatively on a company’s risk profile.

Note: The D&B Fraud Risk Score is currently unavailable as D&B works to better align products and services in the fraud mitigation space to best meet customer needs. 1/16/15

Viability Rating – The Viability Rating is a predictive D&B metric that forecasts the likelihood of a company going out of business, becoming inactive, or filing for bankruptcy within the next 12 months. The Viability Rating ranges from 1-9 (low to high) and identifies companies that would be more likely to commit fraud in order to remain in business. Within the context of the composite rating a low viability rating will reflect negative on a company’s risk profile.

Financial Stress Score – The Financial Stress Score is a predictive D&B metric that forecasts the likelihood of a company closing its outstanding debts or going bankrupt within the next 12 months. The Financial Stress Score ranges from 0-5 (low to very high) and identifies companies that would be more likely to commit fraud due to cash flow or balance sheet issues.

Composite Score – Mousetrap’s composite score provides a comprehensive view of a company’s propensity to commit fraud by combining D&B metrics that consider: a company’s reporting practices, viability, and financial health. It is our opinion that these factors would lead an analyst to finding companies that are more likely to commit fraud due to poor management, poor performance, or a history of questionable practices. Furthermore, by using a GIS-based interface, the analyst will be able to visualize this data in a map view to determine areas more prone to fraud. This initial web application could be customized in the future to reflect additional data sets, adding to the granularity and accuracy of the analysis.