OverviewAs a measure to address the legal risk of companies concerning electronic communication through e-mail, etc., we have utilized our past knowledge and investigational experience, along with the latest technology developed in-house, to establish an unparalleled “AI-based audit method.”
E-mail has become the most common means of transmitting information in recent years, so the importance of e-mail auditing for companies is growing rapidly. However, it is difficult to examine and audit the immense volume of day-to-day e-mail traffic manually, so existing e-mail auditing processes have been a barrier to countering legal risks, such as international litigation, the leakage of confidential information, and unauthorized trading.
KIBIT has learned the investigative techniques used by auditors and uses these to extract relevant e-mails, as well as automatically learning from audit results. It identifies and analyzes risk incredibly cheaply, accurately, and speedily, in a way that was thought to be impossible with conventional technologies.
KIBIT promptly identifies signs that confidential information is being leaked as a result of internal malpractice, and prevents technologies and confidential sales information being taken to domestic or overseas competitors by employees, an issue of life-or-death importance to Japanese companies. Analysis of past cases has shown us that there are three phases in deliberate data leakage: “cultivation,” “preparation,” and “execution.” The perpetrator’s motivation to leak data is fostered during the “cultivation” phase. By using e-mail audits to identify e-mails expressing grievances/dissatisfaction with the company or referring to money worries, which are indicative of this phase, companies can prevent internal malpractice before it reaches the “execution” phase, during which prevention is much more difficult.
Combating cartels and activities that violate antimonopoly laws
In recent years, a number of companies have fallen afoul of U.S. antitrust law (laws prohibiting and restricting the restraint of trade), which is analogous to Japan’s Antimonopoly Act, resulting in large fines and, in the worst cases, the imprisonment of employees. KIBIT has learned the investigative techniques used by auditors, so it can identify differences in nuance that were hard to detect via e-mail filtering based on ordinary keyword searches. By identifying e-mails that refer to playing golf or going drinking with employees of rival companies, which are indicative of the “building a relationship” and “preparation” phases, companies can prevent the formation of cartels.
Combating accounting fraud, bribery, and activities that violate the FCPA
As corporate transactions become increasingly borderless, countries across the globe are stepping up their efforts to unearth dishonest practices involving the bribery of public officials abroad. The U.S. FCPA and the UK’s Bribery Act have been tightened up, as have anti-bribery regulations in China, Japan, and Russia, among others, with a consequent increase in both the number of prosecutions and the total value of fines. Our AI-based solution to combat accounting fraud, bribery, and activities that violate the FCPA detects the counterparts in staff transactions and the bribery of public officials abroad. This prevents corruption, which can lead to the imprisonment of staff if unearthed by the authorities.
Voice analysis designed for the finance industry
The finance industry seeks to strengthen frameworks for managing corporate information and prevent insider trading and data leakage via information management of not only electronic data, but also many other storage media. The task of dealing with voice data is still thought to be something that can only be carried out by a human listening to the actual recording. This places a tremendous burden on companies in terms of cost, time, and effort. FRONTEO has developed an automatic speech-to-text engine specifically designed for the finance industry and offers specialist voice analysis services that incorporate advanced analytical technologies.
Services and Products
Our AI has learned the investigative techniques used by auditors and uses these to extract relevant e-mails automatically, enhancing the accuracy and efficiency of auditing. FRONTEO has built the ideal compliance system, which facilitates efforts to deter internal malpractice, prevent its recurrence, and detect it at an early stage should it occur.