3 ms·
Benford's law - Wikipedia, the free encyclopedia
- iamwil 19y agoI remember reading somewhere that this could be used to detect fraud when you're looking at a set of numbers. It's counter-intuitive, so most people, when they're making up fake data skew outside of Benford's law. A quick search on google says that I wasn't dreaming. http://www.aicpa.org/pubs/jofa/may1999/nigrini.htm http://www.aicpa.org/pubs/jofa/may1999/nigrini.htm
- mixmax 19y agoI believe that the IRS uses Benfords law for fraud detection. If the numbers on your tax return do not conform to the law they will investigate further, as there is a good chance that you made the numbers up. Maybe there is a potential start-up idea in generating and selling credible numbers that will fit Benfords law for creating fraudulent tax returns ;-)