- Travel and Entertainment (T&E) expenses are under
increasing scrutiny as one of the largest controllable
indirect expenses in a firm. This involves internal audits
and analysis by business controls personnel to identify
fraud and misuse and to take appropriate corrective
actions. We have developed a set of statistical models to
identify suspicious behavior for further investigation. Our
Behavioral Shift Models (BSM) leverage domain
knowledge in the form of simple, generic templates that
represent classes of fraud and abuse. The emphasis is on
robustly detecting repeated, out-of-the-norm behaviors as
opposed to single instance occurrences. In this paper, we
describe the application of these models and characterize
their detection capabilities empirically. We also present
validated results and insights generated by our approach
when applied to production data from multiple firms for
several T&E scenarios.
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