Integrity Filters are sophisticated algorithms – developed with the support of the US Government and the World Bank – that can be embedded in eProcurement systems to detect and prevent fraud and other irregularities.
The Filters offer the significant advantages provided by standard data analytics programs, as well as the ability to:
- Most importantly, to identify and block potentially fraudulent or other non-compliant transactions, ex ante, before contracts are awarded, payments approved or losses incurred
- Permit real time and continuous remote monitoring by donors or oversight agencies
- Examine 100% of large data sets, rather than being limited to smaller sample sets
- Create detailed audit trails and digital evidence for investigators
The programs rely on simple, rule based algorithms, based on readily accessible data, creating no “Big Data” collection difficulties.
Among the many schemes that can be detected or blocked by the filters are:
- Collusive bidding by contractors
- Bid rigging
- Kickbacks
- Conflicts of interest
- False, inflated and duplicate invoices
- Shell companies
- Phantom vendors
Training programs on Integrity Filters and other Automated Fraud Detection Programs are under development.