Recent research has shown that the individual numbers in a series of genuine financial transactions will not be randomly distributed, but will follow certain rules covering the distribution of the individual digits. For example, extensive empirical research has shown that genuine financial data (subject to certain qualifying criteria) will have the number 1 as the leading digit in over 30% of transactions, providing the numbers have not been altered, or manipulated in any way. Any variance from this expected distribution may indicate fraud or other manipulation of the data.

Example

A review of a series of Purchase Leger transactions using advanced data analysis techniques showed some surprising anomalies. Subsequent investigation of these anomalies established that a regular contractor for a variety of minor services had been awarded a major maintenance contract in suspicious circumstances. Further investigations showed that the Contract Awards Manager had been paid a substantial bribe to approve this surprising appointment.