Financial forensic statistics: novel methods and a case study.

Oregon Convention Center 

This talk will consider a novel approach to detecting anomalous transactions linked with fraud in food stamp purchases.
The methods detect clusters in the order statistics of the transaction amounts that merit further scrutiny. The techniques then use scan statistics to determine when an excessive number of transactions occur (cluster) about some price point, which is shown to be historically linked to fraud. A scoring paradigm is constructed that ranks the degree in which detected clusters and individual transactions are anomalous among approximately 250 million total transactions.

Fraud

Data Science

Scan Statistic

Order Statistic

Markov chain

Forensic Science 

IMS