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Collect and analyse data to find and prevent fraud

Type of countermeasure

This is a prevention countermeasure. Prevention countermeasures are the most common and cost effective way to stop fraud. They prevent or limit the size of the fraud risk by reducing the likelihood and consequences of fraud.

Summary

Collect and analyse data to:

  • improve processes and controls
  • increase payment accuracy
  • find and prevent non-compliance, fraud and corruption.

Why this countermeasure matters

Not collecting and analysis data to improve processes and payment accuracy may lead to:

  • unclear or ineffective processes, leading to unidentified risks and control vulnerabilities
  • unseen and unchecked fraud and corruption
  • fraudsters deliberately exploiting program weaknesses
  • systemic fraud and corruption.

How to put this countermeasure in place

Some ways to implement this countermeasure include:

  • profiling fraud methods against program data
  • conducting risk scoring using specific data points
  • analysing trends and patterns in program data such as increased fraudulent behaviour via online channels
  • conducting spatial analysis to identify claiming patterns and checking what is different from the standard, normal or expected such as claims for disaster relief payments outside affected areas
  • comparing large data sets to identify suspicious activity, also known as data washing.

How to measure this countermeasure's effectiveness

Measure the effectiveness of this countermeasure by using the following methods:

  • Consult subject matter experts on the data analytics that is performed.
  • Review data analytic exercises to see if they conform to national guidelines and frameworks.
  • Review the methods used to analyse the data.
  • Review how data is used to analyse processes and fraud risks.
  • Confirm sufficient data is collected to effectively analyse compliance, payment accuracy and potential fraud.
  • Conduct a system or process walkthrough by having staff show you how data is collected and analysed.
  • Review how often data analytics is performed.
  • Confirm the data is:
    • reliable
    • current
    • meaningful.
  • Check if and how the results are used to improve processes and controls.

Related countermeasures

Establish governance, accountability and oversight of processes by using delegations and requiring committees and project boards to oversee critical decisions and risk. Good governance, accountability and oversight increases transparency and reduces the opportunity for fraud.

Collaborate with strategic partners such as other government entities, committees, working groups and taskforces. This allows you to share capability, information and intelligence and to prevent and disrupt fraud.

Automatically match data with another internal or external source to obtain or verify relevant details or supporting evidence. This countermeasure is supported by the Office of the Australian Information Commissioner's Guidelines on data matching in Australian government administration.

Conduct internal or external audits or reviews to evaluate the process, purpose and outcome of activities. Clients, public officials or contractors can take advantage of weaknesses in government programs and systems to commit fraud, act corruptly, and avoid exposure.

Coordinate disruption activities across multiple programs or entities to strengthen processes and identify serious and organised criminals targeting multiple programs.

 Investigate fraud in line with the Australian Government Investigation Standards (AGIS).

Related Fraudster Personas

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