Data Discovery is a central component of Data Risk & Privacy (DRP) and focuses on systematically identifying, locating, and classifying all data assets within an organization. This process includes comprehensive data inventories, metadata analysis, and data flow mapping to gain insight into what data is present, where it is stored, and how it is being used. By applying automatic scans, pattern matching, and machine learning techniques, a dynamic overview of structured and unstructured data across various systems is created. The result is a robust data catalog in which sources, data types, sensitivity levels, and lifecycle information are recorded. Within fraud management, Data Discovery offers the opportunity to detect potential vulnerabilities in data landscapes early and take proactive security measures. This approach prevents unknown or forgotten data silos from leading to unnoticed data breaches, data manipulation, or unauthorized access, which can lead to fraudulent activities.
Financial Mismanagement
Financial mismanagement often stems from incomplete or inaccurate datasets underlying reports and analyses. Data Discovery projects begin with reviewing financial systems, including ERP, BI, and accounting platforms, to identify critical data fields such as general ledger entries, invoice information, and budget allocations. Advanced data matching algorithms are deployed to detect inconsistencies between source and reporting systems, such as differences in currency conversions or missing depreciation rules. Additionally, repository scans are performed on shared network drives and legacy databases to detect hidden spreadsheets and documents with financial information. Results are captured in a central dashboard, where data ownership, data quality scores, and validation steps are made visible. Through this comprehensive data mapping, risk analysts can accurately identify where mismanagement may occur and which data flows are most vulnerable to manipulation or misuse.
Fraud
Data Discovery plays a key role in uncovering complex fraud patterns by mapping data duplicates, unused records, and anomalies in customer or transaction data. Initial steps include scans on records with unrealistic values—such as extremely high transactions or illogical date and time combinations—and analysis of relationship patterns between customer accounts, bank accounts, and supplier data. Network analysis tools are used to discover surprising connections, such as clusters of accounts created via identical contact details or IP addresses. Additionally, unstructured data such as emails and contract documents are analyzed for key terms and entity recognition to identify hidden communications about fraudulent agreements or harmful instructions. Documented data lineage and audit trails allow the full path of suspicious records to be reconstructed, enabling forensic teams to conduct targeted investigations and effectively deter fraudulent behavior.
Bribery
Digital bribery often manifests through covert adjustments in procurement and tender systems, where Data Discovery provides the starting point for detecting suspicious changes. By classifying supplier data based on due diligence parameters—such as PEP status, previous violations, and geographic flags—risky entities are quickly identified. Bulk scans of contract documents and invoices search for unexplained price increases, repeated small invoices, or deviations in approval routes. Metadata analysis on documents captures which users had access to contract versions and when changes were made. Automated comparison of version history makes it possible to highlight hidden clauses or price arrangements indicative of bribery. These insights are consolidated into a clear register, in which each data point is linked to responsible parties and supporting documentation, ensuring that internal and external audits are fully transparent.
Money Laundering
In money laundering activities, exploring data ecosystems is crucial to uncover fragmented transaction paths and the setup of strawman structures. The Data Discovery module focuses on identifying transaction APIs, backend databases, and logging systems where payment flows and account activities are recorded. Specific profile analyses link personal and company data to transactions to detect structuring techniques—such as splitting large sums into smaller transactions. Data enrichment through external sanction lists, PEP registries, and negative news sources strengthens the risk profile of involved entities. Additionally, unstructured text extractions are performed on chat logs and email correspondence to uncover communication about money laundering strategies. Results are integrated into a risk register where each data entity receives an updated risk score, providing clarification for further investigation or reporting suspicious activities to financial regulators.
Corruption
Corruption processes often leave subtle traces in governance and compliance data that may easily be overlooked without Data Discovery. Initial data inventory includes mapping policy databases, internal survey platforms, and decision-making documents to uncover suspicious patrimonial transactions or favoritism toward certain parties. Text analysis on memos, emails, and minutes looks for signs of personal financial gain or covert agreements, with NLP models detecting entities and sentiment. Data lineage provides insight into who contributed which input to policy documents and through which approval stages they passed. A central audit log archive stores immutable hashes of every document version, making any attempt at secret policy changes immediately visible. This harmonized dataset provides compliance teams with a detailed overview of potential corruption networks and the exact data points on which misconduct is based.
Violations of International Sanctions
Data Discovery is essential in preventing accidental or deliberate violations of international sanctions by analyzing data silos for the presence of sanctioned entities. Automatic scans on master data, CRM systems, and supplier lists compare entity names and address data with current sanction lists. Entity resolution techniques link alias names and hidden structures to known sanctioned parties, making hidden risks visible. Additionally, log data from communication platforms and file shares are examined for document names and content referring to contacts in sanctioned regions. A cross-system correlation engine brings all findings together into a compliance dashboard, with real-time updates and alerts visible for each potential violation. This enables immediate blocking of transactions or data exchanges and supports a rigorous escalation and reporting process toward regulators and legal departments.
