Detectlets

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31 Ιαν 2013 (πριν από 4 χρόνια και 4 μήνες)

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Fraud and Corruption Detection
System

World Bank

India Ministry of Health and Family Welfare

Conan C. Albrecht, PhD

Brigham Young University


Type 1 and 2 Errors

Problems Exist

No Problems

Problem Found and
Reported



Wasted Money or
Embarrassment

Problem Not Found or
Not Reported

Very Bad; Problem Will
Be Found Later!




Detectlet Introduction

A Detection Solution

Detectlets


Since fraudsters constantly change and update their schemes, the system
needs to quickly adapt and improve


The fraud knowledge is encoded in
detectlets
: small, self
-
contained
plugins

Sequential Security
Instrument Numbers

Contracts not matching
Benford’s Law

Item Amounts That Are
Exact Percentages

Fraud Detection System

Detectlets


A detectlet encodes:


Background information on a scheme


Detail on a specific indicator of the scheme


Wizard interface to walk the user through
input selection


Algorithm coded in standard format


“How to interpret results” follow
-
up

Detectlet Example: Digital Analysis

View All Contracts Screen

View Contract Detail Screen

View Contract Indicators Screen

Maintain Indicators Screen

Example Fraud Indicators


Red Flags of Collusion


Winning bid too high compared with cost estimates, published price
lists, similar jobs or industry


Persistent high prices by all bidders


Bid prices drop when a new bidder enters the competition


Rotation of bidders by job, work, or geography


Losing bidders hired as subcontractors


Round numbers in bids


Bids exact percentages apart


Address, phone, name matching of bidders


Sequential bid securities, bonds, etc


Certain companies always bid against each other


Losing bidders submit identical bids on different jobs


Distant bidders underbid local bidders


Different amounts bid on same items by same bidder in different
contracts

Why Detectlets Work


Economy


Framework is free (and always will be)


It is released under the GPL


The entire cost structure is based on open
source software


Linux operating system (if desired)


Python language


PostgreSQL, MySQL, ODBC databases


Picalo

Why Detectlets Work


Self
-
Sustainability


Detectlets puts the development and
maintenance of the tools in the hands of the
community. It does not rely upon a company
or single source.


The framework allows countries to build and
evolve their own, specific corruption libraries


It also encourages sharing of these libraries

Why Detectlets Work


Repeatability


Detectlet routines are scripted, meaning they
can be repeated, adjusted, and upgraded


Routines developed for one area can
serve as the basis for routines in another
area


A central repository is being developed
right now


http://www.picalo.org/

Why Detectlets Work


Viability


The framework is realistic
-

comprehensive
data analysis requires scripting. Detectlets
support this advanced type of analysis


Detectlets can be embedded into existing
systems


The framework makes logistics easier


No keys to buy and distribute (or lose)


No need for expensive piracy audits


It can be installed on as many computers as
desired


Example Fraud Detection Systems


United Nations Red Flags
Application


Amoco Oil (now British Petroleum)
Fraud Detection Database


North Carolina Picalo Data Mining
System


India Ministry of Health and

Family Welfare