Fraud Detection Methods in Denmark Yield Significant Results, But at What Cost?

The Data Mining Unit in Denmark has been using data analytics to combat welfare benefits fraud since 2015. In 2019, the unit generated an equivalent of €61.9 million worth of paybacks and prevention of wrongful payments, with a yearly investment of approximately €3.4 million.

The Impact on Citizens

But what about the Danish citizens? Critics argue that the social and political debate on data ethics in Denmark is insufficiently present, with public values such as transparency and proportionality being sorely needed.

The Government’s Perspective

However, the Danish government has been giving thought to the position of citizens, their rights, and how they can benefit from the use of data analytics in relation to welfare benefits. The point of departure for the Danish Government is that it is easy for citizens to fall victim to the complexity of the welfare benefits system.

Legal Safeguards

Citizens can count on several legal safeguards, such as: * Receiving information on the investigation * Being asked consent for further data collection from private entities * Getting the opportunity to clarify the situation * Having the right to appeal The investigating authority has the burden of proof and needs citizens’ cooperation on several aspects.

Early Intervention

The Danish government is also expanding its activities in detecting potential fraud and error in the earliest stage possible, with the aim of discovering irregularities in the application phase before any payments are made. This includes: * Developing a web service for new applicants * Training machine learning algorithms to detect irregularities regarding recent changes in personal circumstances of benefit recipients

Human Rights Perspective

Early intervention may not only prevent potentially difficult situations for citizens but also be a good idea from a human rights perspective, as it focuses on the payment of correct benefits rather than investigating overpaid citizens.

The Bigger Question: Do Citizens’ Rights Get Protected?

But do you think the actions taken by the Danish government suffice to serve citizens while protecting their rights? How are citizens’ rights protected in your country related to the use of data analytics in the welfare domain? Could the Danish approach work in your context?