Stopping fraud in government payment

By Lilia Guan
Agencies are coming under pressure to reduce spending and enforce compliance, when it comes to taxing the public and welfare payments, as well as ensuring everything is above board in contractual agreements.
This creates compelling reasons for agencies worldwide to adopt more sophisticated approaches to protecting revenues and tackling benefits fraud and improper payments.
Analytics software vendor, SAS and service provider Capgemini have worked together to come up with a product to help government agencies reduce revenue losses from tax and welfare fraud, and improper payments. 
Together, SAS and Capgemini will provide a revenue fraud and improper payment protection to public sector organisations in Europe, Brazil, India and Asia-Pacific, through the SAS Fraud Framework for Government, backed by Capgemini’s Business Information Management Global Service Line.
The SAS Fraud Framework employs business rules, anomaly detection, predictive modeling and social network analysis to detect possible fraud and immediately alert investigators or auditors.
The software searches data for anomalies that could indicate fraud or error. Predictive modelling uses historical behavioural information to identify suspicious behaviours similar to known fraud patterns.
Social network analysis uncovers hidden relationships or linkages that suggest collusion and organised fraud rings.
Capgemini’s senior vice president head of public sector Australia and New Zealand, Shelley Oldham said currently the product is aimed at government agencies dealing with tax and welfare.
“The private sector works on an upstream method where if you want to apply for a credit card they will investigate you before approving,” she said.
“The public sector is more downstream and will only deal with fraudulent behaviour after it has occurred.”
Ms Oldham said government agencies have to deal with criminals constantly looking at breaking sophisticated anti-fraud measures.
“They need tools to look at the immediate problems and look at predictive modelling to deal with fraud issues.”
According to Ms Oldham the product will also help in assisting with procurement across large agencies.
“In the early stages of procurement there’s a reasonable amount of paper being used and this can lead to fraudulent behaviour,” she said.
“The product can detect fraudulent behaviour and anomolies about who isn’t following process.”
The software also integrates data, analyses the data for anomalies that could indicate fraud or error, and passes alerts to an investigation management capability.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at  

Sign up to the Government News newsletter

Leave a comment:

Your email address will not be published. All fields are required