Fraud Detection Methods in Spain: Predictive Tool Helps Labour and Social Security Inspectorate Fight Fraud

===========================================================

The Spanish Labour and Social Security Inspectorate (LSSI) has implemented a new predictive tool to combat fraud in all sectors. The “Anti-fraud tool” is a set of IT tools that allows for massive data cross-checking and analysis, providing relevant information to support LSSI campaigns.

Background

The need for improved fraud detection drove the implementation of this measure, which started in 2015 and is still ongoing. The tool has been developed to define different fraud patterns, identify models and profiles, and improve data management to ease analysis by the LSSI.

How the Predictive Tool Works

The predictive tool operates in several phases of the anti-fraud process:

• Detection: Early detection of fraud behaviors
• Selection: Simplification and improvement of the selection process
• Research: Increase quality of inspection activities

It uses data from different databases, including:

• Social Security Treasury
• Tax Administration
• LSSI’s INTEGRA database

The budget for this project comes from the Ministry of Employment and Social Security.

Potential Impact

Initial analyses suggest the potential of the tool in combating fraud. The outcome of the measure will be further evaluated as it continues to be implemented.

Transferability

This predictive tool has the potential to be transferred to other countries where Labour Inspectors have access to Administration data and IT resources.

Contact Information

For more information, contact Begoña Buces, Deputy Director for Inspection in Social Security, irregular economy and immigration at ITSSSGIT@meyss.es.