Feb 21 • 06:30 UTC 🇬🇷 Greece To Vima

Jaccard: the new 'weapon' that finds fraud networks

The Greek Independent Authority for Public Revenue is employing the Jaccard similarity index to enhance its detection of fraudulent business networks following a significant crackdown on 380 ghost companies.

In the wake of dismantling a complex network of 380 ghost companies that amassed 43 million euros in public debt, the Independent Authority for Public Revenue (IAPR) in Greece is advancing its detection capabilities. The IAPR is extending its sophisticated model for identifying business relationships, a system that has been praised for its effectiveness in investigating such fraudulent activities. This innovative approach marks a new era of tax audits for companies that frequently change their directors and tax IDs. At the core of this new system is a mathematical algorithm known as the Jaccard similarity index, which evaluates the resemblance between two different data sets. This algorithm can uncover movements and patterns in business operations that are not easily visible through traditional methods, allowing tax authorities to investigate areas previously deemed inaccessible with outdated techniques. The implementation of the Jaccard similarity index represents a significant step forward in addressing long-standing issues of tax fraud. By establishing a permanent digital barrier against these fraudulent practices, the IAPR is aiming to enhance its tax collection efforts and deter future instances of economic deception, thereby signaling a commitment to improve public finances and accountability in Greece.

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