Many computer systems are subject to fraud and errors. The fraud can be committed by internal staff or external hackers.
40 years ago, I introduced a system to prevent the fraud and errors in the computer operations of a large insurance company. It worked. It identified a major error that was hidden. It allowed the bug to be identified and fixed. It prevented the occurrence of similar errors.
Every night, we were assured that the database is intact against deliberate fraud by internal staff or external hackers.
How was this achieved?
I introduced a system of independent audit of the entire database and transactions at the end of the day. A separate audit program, under the control of a separate team of staff, monitor all the transactions and ensure that the control totals are intact.
If there was any mistake in the software code or any fraudulent attempt to change any data, the audit program was able to identify the differences and alert the internal audit team to investigate the source of the error.
It is a simple, yet foolproof approach. I do not need to check the million lines of codes thoroughly, as any wrong code will throw out an error in the audit protocol.
While many people are scared of computer systems and platforms being hacked, I know how to detect the fraudulent activities.
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