Optimizing Performance in Volatile Times Fraud Investigations in Louisiana Department of Children and Families (DCFS) Ted deSaussure

Optimizing Performance in Volatile Times

Fraud Investigations in Louisiana Department of Children and Families (DCFS)

Ted deSaussure


Background

• Large scale fraud investigation conducted in New Orleans involving Secret Service, multiple Federal law enforcement agencies & LA DCFS

• Identified a major challenge – getting to the data to make informed decisions– Transaction Data was available BUT

• Needed great tech expertise to retrieve• Needed time & experience to interpret

• It was all about the data and the patterns in it


Before Tina - BI• Primitive data mining

– Good information– Single person held expertise– Delay in report availability

(maybe 1+ days)• Tediously flip through reports

to make decisions regarding targets• Operation Clean Swipe• The LA legislature segregated fraud recovery

monies to fund program integrity efforts


Vision

• Use the integrity fund to develop a solution that is:– Intuitive– Scalable– Effective– Flexibility to Address New Issues – MORE ON THIS

LATER• Bottom line – it has to work!


Scope

• Blend readily available data to identify suspicious transaction patterns that are inconsistent with normal patterns of commerce

• Make the solution easy to learn, use & interpret to the entire investigative organization

• Make it responsive to today’s requirements and flexible/scalable enough to support tomorrow’s needs


Development – Building Tina - BI

• Practical Challenge– what would it look like when finished?

• Intensive collaboration between developers & users to design, streamline & deploy components of the initiative

• Used some USDA ALERT system (Anti-Fraud Locator for EBT Redemption Transaction) signatures of fraud– High dollar– Even dollar– Rapid Transactions

• Developed local signatures of fraud– Distance to store & geographic redemption graphics– Transaction amount clustering– Many others


Louisiana Purchase Card ActivityAcross USA


Louisiana Purchase Card ActivityAcross USA


Geographic Selection of Stores


Sample Output


Sample Customer Sales Summary


Customer Summary on the Map


Sample Customer Detail


Flexibility to Address New Issues • Disaster response - Katrina & Gustav

– Providing critical info to USDA • FEMA Trailer Location• EFT Status

• Employee fraud– Exploit mainframe change logs to eligibility system– Post disaster fraud was discovered based on benefits

address – not individual beneficiary• Child care fraud• Improved Foster care services


Flexibility to Address New Issues • Ability to do this and more independently from IT

organization


Sharing with Others

• Mississippi• Oklahoma


Awards & Press Coverage

• The National Technology Solution Award 2008 – DCFS received DM Review’s 2008 Innovative Solution Award in the Business Intelligence/Analytics category for its use of mapping technology to help detect fraudulent activity in the state’s SNAP Program. In announcing the award that recognizes groundbreaking solutions that provide proven business value, DM Review’s senior editor Valerie Valentine called Louisiana’s Geographic Information System (GIS) technology as a "precedent-setting example." "One of the most important issues for any government agency is eliminating waste and fraud that prevent the public from being fully served.", said DCFS Secretary Kristy Nichols. "DCFS has renewed its commitment to leading the way when it comes to modernizing our delivery of service and targeting any misuse of funds. We are proud to be recognized for our work in this area, and it serves to motivate us to continue as stewards of the public’s trust." Louisiana is one of the first to use GIS technology to detect fraud by helping identify trends and patterns in the SNAP Program.

• The Excellence in Human Services Technology Award 2008 - DCFS received the Excellence in Human Services Technology Award for its use of GIS technology to help meet foster care needs of the state’s children and families. The technology allows a child welfare worker to view and map foster homes and placement resources for a child near their residence. This helps in meeting the family’s and child’s needs by keeping the child in their school system and reducing the number of transitions the child must encounter. DCFS was the first child welfare system in the nation to use GIS tracking technology in this manner.

• Computer Heroes Award May 2005 • Computerworld “Best Practices in Business” October 2004 • Information Builders “Most Innovative Use of Technology” May 2005 • Business Intelligence Beats Back Food Stamp Fraud – CIO Insight Article 2005• Taking a bite out of Food Stamp Fraud – ESRI Article September 2004 • Louisiana takes a bite out of Food Stamp Fraud – Government Computer News Article August 2004


Current State of Affairs• $1.2 million in trafficking for a food truck

– 151 client interviews – 150 signed confessions

• Current case – convenience store for Sept 2011– $103k in sales– $77 average sale– $780 single transaction– 89% of transactions > $50– $50k transactions > $200

• 30+ new retailer investigations – potentially millions in fraudulent benefits

• Additional child care investigations• With ½ original staff


Challenges

• Funding• Mission-critical IT organization priorities were to

support core business systems – not necessarily ancillary systems such as fraud

• Infrastructure/Capacity


Closing Thoughts• It is all about having access to data and the ability

to interpret it in meaningful ways• Tactically – important to close individual cases

with a minimum of effort• Strategic – important to share consistent insight

into issues with major decision makers with confidence

• With strained budgets, it is important to use technology to optimize staff resources

Documents

Optimizing Performance in Volatile Times Fraud Investigations in Louisiana Department of Children and Families (DCFS) Ted deSaussure