4 ms·
I think one of the most interesting methods of business fraud detection is Benford's law. It has been found that natural transactions do abide by this law. htt
by RandomWorker 6y ago
I think one of the most interesting methods of business fraud detection is Benford's law. It has been found that natural transactions do abide by this law.
https://en.wikipedia.org/wiki/Benford%27s_law https://en.wikipedia.org/wiki/Benford%27s_law
- jerzyt 6y agoIn real financial data you'll often see departures from the Benford's law. For example, if a company has $50 expense limit for dinner, you'll find a lot of invoices for $49.99. Same goes with approval limits at different management level. Not as useful in practice as in theory.
- craydandy 6y agoI've found the same. It sounds great and applicable but could not find any practical application with real data. Even when applied to large number of real companies' journal entries, the amount of false positives is overwhelming.