Belgium’s VLAIO Launches Innovative Fraud Detection System for Entrepreneurs

Flanders Innovation & Entrepreneurship (VLAIO) has partnered with Devoteam to develop a cutting-edge fraud detection tool, designed to combat fraud and streamline the subsidy-granting process. The system was launched earlier this year and provides a score on the calculated risk for each submitted request for subsidies.

How it Works

The innovative solution uses a combination of underlying methods to define risk, including:

• Community detection
• Rule-based methods
• Supervised machine learning
• Anomaly detection

These methods analyze data from multiple sources, including VLAIO’s own databases and the Central Database for Enterprises (KBO). The resulting data is visualized in a custom-built Power BI dashboard that inspectors can use to identify high-risk applicants and perform targeted inspections accordingly.

Security Measures

Ensuring the security of sensitive data, including information on sole proprietorships and individual citizens, was a key constraint. To address this challenge, VLAIO has implemented robust security measures throughout the process, from data ingestion to display.

Benefits

The fraud detection system has already yielded significant benefits for inspectors, who can now quickly identify high-risk subsidy requests and companies. The interactive Power BI dashboard provides a wealth of information, including graphs that visually represent company relationships, reducing the time spent on each case and improving readability.

According to VLAIO, the new system is expected to save inspectors hours of manual work, freeing them up to focus on more critical tasks. The success of this initiative serves as a model for other organizations seeking to improve their fraud detection capabilities while maintaining data security.

Conclusion

With its innovative approach to fraud detection, VLAIO is demonstrating its commitment to supporting entrepreneurs in Flanders and ensuring the integrity of its subsidy-granting process. This system is an example of how technology can be used to combat fraud and streamline processes, ultimately benefiting both entrepreneurs and inspectors alike.