Dossier. Corporate governance
Focus. Capitalism and Business
Special 30 Years of Economia & Management
Fighting Fraud Thanks to Algorithms
Starting with the information it has available, the Italian pension and social insurance institute INPS has developed an algorithm to identify companies whose behavior seems to indicate fraud. The entity has also observed that, through preventive actions, it is possible to reduce the propensity for fraud of companies given special attention by predictive analysis.
Following an experiment, INPS found that in only twenty days, 22 percent of the sample monitored totally or partially regularized their position, without costs for the public administration. Moreover, in nine months over 1.5 million euros were recovered, stabilizing the trend towards emersion of fraud.