Finally, financial statement fraud detection involves the monitoring of otherwise dormant and suspended general ledger (GL) accounts as well as journal entries (JEs) made at suspicious times.

The preceding descriptions are only a short list of fraud examples, and new methods for committing bank fraud are being introduced each year. According to Ernst and Young, more than 500 million checks are forged annually, with losses totaling more than $10 billion. You can see why understanding the concept of anomaly detection is critically important.