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31 Ιαν 2013 (πριν από 5 χρόνια και 3 μήνες)

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Fraud and Corruption Detection

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

Wasted Money or

Problem Not Found or
Not Reported

Very Bad; Problem Will
Be Found Later!

Detectlet Introduction

A Detection Solution


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

The fraud knowledge is encoded in
: small, self

Sequential Security
Instrument Numbers

Contracts not matching
Benford’s Law

Item Amounts That Are
Exact Percentages

Fraud Detection System


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

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

Why Detectlets Work


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


Why Detectlets Work


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


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

A central repository is being developed
right now

Why Detectlets Work


The framework is realistic

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

Detectlets can be embedded into existing

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

Example Fraud Detection Systems

United Nations Red Flags

Amoco Oil (now British Petroleum)
Fraud Detection Database

North Carolina Picalo Data Mining

India Ministry of Health and

Family Welfare