HM REVENUE & CUSTOMS has obtained new anti-fraud technology that could save up to £20m a year.
The Taxman is expanding its use Fujitsu’s Fraud Screen, which looks at data obtained from tax credit applications and checks for discrepancies and risks.
Based on the information reviewed, the system then creates a risk score and the data is sent to an intervention team, The Guardian reports.
Fraud Screen was built by Fujitsu and saved HMRC £10m during its six-month pilot. Its tailored technology is already used by the financial services industry to reduce fraud and errors in tax credit applications.
Andy Fuller, assistant director at Fujitsu UK, said: “Once the system goes live in a few weeks, we can be confident of looking at just the ‘risk’ applications, and can go with it in a different, more vigilant mindset.”
Last year, Fujitsu ran a fortnight-long pilot on tax credit applications in which it highlighted 25% more fraud and error than through normal processes. The company agreed a contract with HMRC to run a longer pilot of six months until the end of March, during which it recovered £10m.
Following its success, the Taxman extended the scope of applications to analyse, from which it found further savings of £15m.
Fujitsu is currently in talks with other organisations, including the Department for Work and Pensions, on how to use technology to reduce fraud.
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