Data Analytics Is Low for Corporate Investigations

According to Wendy Schmidt, Deloitte Advisory principal and business intelligence services global leader for Deloitte Financial Advisory Services, “In the past year or so, new analytic tools have emerged that gather information from publicly available social media content which, in a matter of minutes, can reveal connections that previously may not have been identifiable. We are using this information, along with more traditional public record research, in the context of pending litigation, fraud and corruption investigations, regulatory inquiries, M&A due diligence and cyberthreat sensing.”

The research suggested that the barrier to data analytics usage is primarily a resource and education issue. Just over 21% of respondents said they lacked the budget to pursue data analytics technologies specifically tailored to social media content; another 18% said lack of leadership understanding was preventing it. A larger factor, however, was a lack of awareness concerning available data analytics options: 26% said they were unaware such tools existed.

“This is emerging technology, as more and more tools are developed, it will be important to educate lawyers and clients as to what may be out there. Lack of awareness of these tools is likely why we found that only a small percentage of survey respondents are currently using these social media analytics tools,” Schmidt added.

Currently, Deloitte is employing such tools to aid in litigation, trial intelligence and jury selection. However, data analytics of this type, and the ability to comb through massive troves of public social media information, could be applicable to nearly all practice areas.

Holly Edwards, vice president at FocusKPI, said that while the use of data analytics related to social media in investigations may be low, increasing presence in the industry could provide a massive paradigm shift for the way investigations are conducted. “There is tremendous unrealized value in unstructured data and being able to discern customer sentiment,” Edwards said. “The legal industry is prime for this innovation, in particular in investigations, to glean intelligence regarding behavior, trends, activities and potential malevolent behavior. The untapped potential is profound ' unequivocally, worth the investment.”

Privacy Concerns?

For those concerned about the rules around how private social media information is collected by these tools, remember that the data analytics tools talked about here are specifically public.

Regardless, Schmidt said that the mercurial nature of data protection and privacy laws should be a consideration for those hoping to employ data analytics in their investigative strategies. “The rules surrounding the use of social media for investigations are probably changing as fast as the online media grows, so when you use these tools, you need to ensure you're working with legal counsel for advice on how you access and use that information,” Schmidt said. “There are case law and professional ethics opinions, and of course specific terms of use for each social media site, which must be taken into consideration. It is important to make sure that any tool you use adheres to platform terms and conditions so that no information flagged as private is accessed.”

Chris DiMarco'reports for'Legaltech News, an ALM affiliate of this newsletter in which this article also appeared.

Social media has become the dominant channel of communication for a spectrum of users ranging from individual bloggers to billion-dollar corporate conglomerates. The vast sum of publicly available data created on social media can help contextualize matters both large and small, and data analytics are allowing industries of all types to better identify and categorize the patterns in that data. However, a recent survey indicated that the use of data analytics on social media is lacking in corporate legal investigations, despite its potential.

What the Research Indicates

Conducted by Deloitte, the research showed that while 45.2% of polled corporations have used publicly available social media content in litigation and fraud investigation, only 12.6% subjected that content to data analytics. This low occurrence of analytics use could represent a missed opportunity for organizations to do more with the data available online.

According to Wendy Schmidt, Deloitte Advisory principal and business intelligence services global leader for Deloitte Financial Advisory Services, “In the past year or so, new analytic tools have emerged that gather information from publicly available social media content which, in a matter of minutes, can reveal connections that previously may not have been identifiable. We are using this information, along with more traditional public record research, in the context of pending litigation, fraud and corruption investigations, regulatory inquiries, M&A due diligence and cyberthreat sensing.”

The research suggested that the barrier to data analytics usage is primarily a resource and education issue. Just over 21% of respondents said they lacked the budget to pursue data analytics technologies specifically tailored to social media content; another 18% said lack of leadership understanding was preventing it. A larger factor, however, was a lack of awareness concerning available data analytics options: 26% said they were unaware such tools existed.

“This is emerging technology, as more and more tools are developed, it will be important to educate lawyers and clients as to what may be out there. Lack of awareness of these tools is likely why we found that only a small percentage of survey respondents are currently using these social media analytics tools,” Schmidt added.

Currently, Deloitte is employing such tools to aid in litigation, trial intelligence and jury selection. However, data analytics of this type, and the ability to comb through massive troves of public social media information, could be applicable to nearly all practice areas.

Holly Edwards, vice president at FocusKPI, said that while the use of data analytics related to social media in investigations may be low, increasing presence in the industry could provide a massive paradigm shift for the way investigations are conducted. “There is tremendous unrealized value in unstructured data and being able to discern customer sentiment,” Edwards said. “The legal industry is prime for this innovation, in particular in investigations, to glean intelligence regarding behavior, trends, activities and potential malevolent behavior. The untapped potential is profound ' unequivocally, worth the investment.”

Privacy Concerns?

For those concerned about the rules around how private social media information is collected by these tools, remember that the data analytics tools talked about here are specifically public.

Regardless, Schmidt said that the mercurial nature of data protection and privacy laws should be a consideration for those hoping to employ data analytics in their investigative strategies. “The rules surrounding the use of social media for investigations are probably changing as fast as the online media grows, so when you use these tools, you need to ensure you're working with legal counsel for advice on how you access and use that information,” Schmidt said. “There are case law and professional ethics opinions, and of course specific terms of use for each social media site, which must be taken into consideration. It is important to make sure that any tool you use adheres to platform terms and conditions so that no information flagged as private is accessed.”

Chris DiMarco'reports for'Legaltech News, an ALM affiliate of this newsletter in which this article also appeared.