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

Publish date:

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 […]

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

Related Posts

Cyber Attacks

Is your cybersecurity insurance dynamic enough for today’s threat landscape?

Geert van der Linden
Date icon May 3, 2021

To provide effective insurance, and claim their stake within this growing market, insurance...

cloud

Looking to improve business agility? Start with a move to cloud security

Geert van der Linden
Date icon April 19, 2021

Cloud Security Services offer organizations a pragmatic and cost-effective solution

Cyber Attacks

False positives in web application security – take up the challenge!

Date icon April 16, 2021

Streamline manual effort and enhance automated tactics to analyze code from within.