Procurement Fraud Discovery using Similarity Measure Learning

Abstract. This paper describes an approach to detect hints on procurement fraud. It was developed within the context of a European Union project on fraud prevention. Procurement fraud is a special kind of fraud that occurs when employees cheat their own employers by executing or triggering bogus payments. The approach presented here is based on the idea to learn a similarity measure that compares an employee (or payroll) standing-data record to a creditor record, in order to detect creditors that are suspiciously similar to employees. To this ends, it combines several simple similarity measures like address similarity or spacial similarity using a weighting scheme. The weights, that is the overall similarity function, are learned from user input specifying whether a particular pair of payroll and creditor data records are similar. Key words: similarity measure learning, fraud detection, health care

• Type: Journal
• Year: 2008
• Where: CBRMD
• Authors: Stefan Rüping, Natalja Punko, Björn Günter, Henrik Grosskreutz
• Keywords: CBRMD 2008, Fraud, Procurement Fraud, Similarity Measure