The fight back begins. Tackling fraud, error and non-compliance with digital

A tough economic climate, changing demographics and a heightened demand for benefits mean that no government can afford to pour money down the drain. Yet the level of tax non-compliance and welfare fraud & error worldwide suggests this is exactly what’s happening.

So it’s no wonder that tax and welfare agencies are looking for ways to outsmart the fraudsters, evaders and late payers. And they’ve got a valuable tool in their arsenal: digital. It is transforming the way in which government, citizens and businesses interact.

Digital makes it harder for the fraudsters and evaders to hide. It helps to push defaulters to pay their dues. How? Because tax and welfare agencies can now bring together the mass of citizen and business information previously sitting in different information silos across government departments and in multiple communications channels.

With the right digital tools and analytical techniques, such as predictive analytics, agencies can spot mismatches between a taxpayer’s economic activity and his reported taxable income. So a taxpayer paying tax on an income of just $40,000, yet with lifestyle indicators suggesting he possesses properties abroad and a high-spec car, will be flagged before he cheats the system.

A range of techniques including risk rules, anomaly detection and entity link analysis is now available to help agencies understand the characteristics of new types of fraud and how to spot them. They are the type of technique already proving their worth at the UK tax and revenue agency. HM Revenue & Customs, the UK tax authority, is a leading example of using digital to tackle fraud. They use Connect, their analytics solution, to cross-match one billion internal and third party data items to uncover hidden relationships across organizations, customers and their associated data links. HMRC has so far recovered £2.6bn additional tax as a result of Connect.

To find out how Capgemini and SAS are helping tax and welfare agencies worldwide use digital in the fight against fraud, error and non-compliance, watch our animation video to learn more

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