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HOW TO DETECT FRAUD

+20% more accurately than Benford's Law

Benford‘s Law and
Fraud Detection

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Fraud experts have used Benford’s Law for a long time. It’s a powerful approach to detect fabricated transactions, but with one caveat: too many false positives. We’ve worked
to mitigate that. Our algorithm is based on Benford’s Law while mitigating this weakness.

What we improved in Benford’s Law:

  1. Using a predefined sample size. Without it, false positives are almost inevitable.

  2. Benford’s Law fails with non-Benford data.

  3. Detecting fraudsters who try to mimic Benford’s Law.

Types of fraud detection:

Our algorithm detects where a human may have fabricated transactions, such as:

✔ Accounting fraud

✔ Invoice fraud

✔ Tax fraud

The result: our algorithm can detect corporate fraud with a +20% higher accuracy than the traditional Benford’s Law approach.

Dr. Franco Arda
Analytics Consultant

Frankfurt am Main, Germany

Website:     www.benfordanalytics.com
Email:         franco@benfordanalytics.com

Phone:       +49 1 525 425 35 34

Booking:     Book a 30-minute call

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