Detect Accounting Fraud Before It's Exposed

PactDig's fraud similarity engine compares every SEC filing against a proprietary database of 206 AAER enforcement cases — the same cases the SEC used to prosecute WorldCom ($3.8B fraud), Enron ($74B loss), and Wirecard (€1.9B fabricated).

Fraud Patterns We Detect

• Revenue Fabrication: Fake customers, round-tripping, bill-and-hold schemes
• Channel Stuffing: Shoving inventory into distributors to inflate sales
• Expense Capitalization: Calling operating costs "investments" (WorldCom classic)
• Non-GAAP Manipulation: Stripping recurring costs to fabricate "adjusted" profits
• Off-Balance-Sheet Concealment: SPEs, VIEs, Repo 105-style window dressing
• Related-Party Self-Dealing: CFO-controlled entities, undisclosed conflicts
• Goodwill Impairment Avoidance: Refusing to write down failed acquisitions