A government client procuring over a hundred thousand different equipment and materials worth over £800m lacked assurance over its supply chain partners.
The client had a trusted group of national and multi-national partners that it relied on to supply goods.
It was impossible to know whether and how contractors operated. However, there was anecdotal evidence that some had merged through M&A activities, creating conflicts of interest and opportunities for fraud.
DMRC was approached to develop a data-driven approach to assess and detect any occurrence of procurement fraud.
Approach
After an extensive period of interviews and analysis of the inner workings of the clients’ procurement processes, DMRC identified several methods to test for fraud rapidly.
Using the clients internal and 3rd party data, we implemented a rapid assessment model, modelling 2-3 use cases per week and analysing the results.
We used several techniques such as network analysis, clustering and outlier detection and apriori algorithms to design and deploy robust detection models.
In addition, we also devised probability-based methods based on guidance documents to assess the typical utilisation, lifetime cost and other patterns.
Benefits
DMRC identified £80m annually in fraudulent overpricing.
Each case of fraud directly linked to a supplier, product and transaction enabling fraud teams to investigate.
We produced a comprehensive dataset outlining the linkage of companies as evidence for future investigations.
We implemented a regular fraud monitoring tool based on the models developed to proactively identify fraud risk before suppliers were paid.
We use Cookies to facilitate and improve your experience of Our Site and to provide and improve our products and services. Where you contact us, we use your personal information compliant with the law and in accordance with the terms of our Privacy Policy. By clicking “Accept”, you consent to the use of all Cookies and agree to the terms of our Privacy Policy and use of our website.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.