Using Spatial Analysis for Monitoring Fraud in a Public Delivery Program

Abstract

In this article, fraud in public delivery programs is approached using spatial analysis. By examining welfare recipients' consumer behaviors in a spatial framework, it is possible to identify stores that draw an anomalous clientele, such as those who travel long distances and avoid stores in their local area, indicating that these stores may be committing fraud. This article shows how this idea can be operationalized for monitoring fraud to secure public accountability.

Rethinking Social Welfare Fraud from a Complex Adaptive Systems Perspective

“…For instance, Kim (2007) developed a fraud detection method for a state WIC program based on how recipients and vendors geographically interacted. Linking several program data sources, the study first empirically examined interaction patterns between WIC stores and program recipients in an Ohio county.…”

“…If WIC fraud emerges from interactions among actors with a high-risk propensity during business processes, the necessary approaches to detect wrongdoing must be updated based on an understanding of the interactions among them. For instance, Kim (2007) developed a fraud detection method for a state WIC program based on how recipients and vendors geographically interacted. Linking several program data sources, the study first empirically examined interaction patterns between WIC stores and program recipients in an Ohio county.…”

Detecting Non-compliant Consumers in Spatio-Temporal Health Data: A Case Study from Medicare Australia

“…A Modified Huff Model The original Huff model is proposed as a way of estimating the trading area of supermarkets [13]. More recently, it has been used to monitor fraud in public delivery programs [14]. Here, we will use the model to study how consumers choose their pharmacies since this is one case where the underlying assumptions of the Huff model clearly hold: the commodity-like service of most pharmacies makes the distance to pharmacy an important factor.…”