Pacific Dental, a rapidly growing dental support organization, sought to fortify its risk management and compliance strategies. With over 6,000 vendors, the company faced potential exposure to issues ranging from fraud to IRS fines. By adopting Fraud.net’s innovative Know-Your-Vendor (KYV) platform, Pacific Dental efficiently tackled its vendor backlog, resulting in substantial benefits.
Company Profile and Goals: Pacific Dental has consistently ranked among Inc. 5000’s fastest-growing private companies for 13 consecutive years, showcasing its prominence in the dental support industry. With a network spanning 26 states and over 850 supported offices, Pacific Dental aimed to enhance compliance, reduce vendor-based fraud, and decrease manual fraud detection using AI-powered solutions.
Challenges and Objectives: The company recognized the need to assess compliance among its extensive vendor base. The primary objectives included identifying compliant vendors, minimizing fraud-related losses, and leveraging AI technology to streamline risk rules, thereby saving time and resources. Pacific Dental faced a substantial backlog of vendors, exposing them to heightened risks, including potential IRS fines.
Fraud.net’s Contribution: Fraud.net emerged as a key ally for Pacific Dental in addressing their challenges. The AI-powered KYV platform proved instrumental in swiftly vetting the extensive list of vendors. The solution demonstrated its effectiveness by instantly flagging discrepancies, such as unregistered tax identification numbers (TINs) and instances where vendors lacked IRS records.
Risk Reduction Through KYV: Fraud.net’s KYV solution enabled Pacific Dental to proactively identify non-compliant vendors, allowing for a prompt cleanup of their third-party supplier network. This intervention positioned the company for pre-audit success, averting potential IRS fines and reducing overall risks in a more expedited manner than initially anticipated.
Quantifiable Results: The outcomes of Pacific Dental’s collaboration with Fraud.net were tangible and impactful. The company successfully avoided potential IRS fines amounting to $3.3 million. The KYV platform significantly reduced the time required for vendor fraud reviews. Notably, it promptly identified 25 high-risk vendors, facilitating swift corrective actions.
Refinement of AI-Powered Rules: The integration of Pacific Dental’s vendor data into Fraud.net’s KYV solution allowed for the refinement of AI-powered rules. This approach not only enhanced compliance by identifying irregularities but also contributed to a more efficient risk management framework. The streamlined vetting process provided Pacific Dental with actionable insights, empowering them to secure their supply chain and onboarding procedures effectively.
In conclusion, Pacific Dental’s strategic adoption of Fraud.net’s KYV platform exemplifies the positive impact of AI in fortifying compliance, reducing fraud risks, and streamlining operational processes. The collaboration showcases how innovative technology can empower organizations to navigate complex vendor landscapes, ultimately safeguarding their financial integrity and regulatory standing. Download the case study here.