$3.9M Leakage Detection

The Challenge

A manufacturing company with $120M annual turnover knew they had financial leakage but couldn't pinpoint the source. Margins had eroded over 3 years despite stable revenues. Internal audits found nothing significant. Management suspected fraud but had no evidence. The leakage was spread across multiple processes making it invisible to traditional audits.

Our Approach

• 1Deployed 210 AI agents to analyze every transaction across procurement, payroll, inventory, and vendor payments
• 2Cross-correlated data across processes to identify multi-process fraud schemes
• 3Applied duplicate payment detection across 3 years of AP transactions
• 4Ran ghost vendor analysis against corporate registry and tax records
• 5Analyzed payroll for attendance manipulation and ghost employees
• 6Examined inventory records for shrinkage patterns and theft indicators
• 7Built vendor relationship graphs to identify collusion rings

The Outcome

• Identified $3.9M in total leakages across multiple fraud types
• $2.2M in procurement fraud (duplicate payments, inflated pricing, kickbacks)
• $1.0M in payroll fraud (ghost employees, overtime manipulation)
• $730K in inventory shrinkage and theft
• New controls implemented prevented future leakage