What are the three steps of the proactive method of fraud detection?

The proactive method of fraud detection involves a systematic approach to identifying and mitigating potential fraudulent activities before they occur. The correct choice identifies the three critical phases: analytical steps, technological steps, and investigative steps.

Analytical steps refer to the processes involved in examining data patterns and anomalies that may indicate fraud. This phase is essential as it relies on statistical analysis, data mining, and other analytical techniques to uncover suspicious trends and behaviors.

Technological steps involve leveraging advanced tools and software designed to detect fraud. These technologies aid in automating the monitoring process, making it easier for investigators to analyze vast datasets and identify irregularities that require further examination.

Investigative steps are critical as they encompass the actions taken to delve deeper into the findings from the analytical phase. This may involve interviewing individuals, gathering documentation, or conducting further analysis to determine whether fraud has indeed occurred.

This structured approach ensures that organizations are not only reactive to fraud after it has taken place but are also proactively working to prevent it by utilizing data and technology effectively.