FraudSim: Simulating Fraud in a Public Delivery Program

Abstract

This chapter shows that white-collar crime can be approached using an agent-based model. Fraud in public delivery programs often involves several entities that are loosely interrelated and interact dynamically. However, the crime literature has not paid sufficient attention to these characteristics, thus providing limited utility for public managers. This chapter frames a public delivery program as a complex system. The patterns of fraud in such a system are simulated using an agent-based model called FraudSim. We demonstrate that FraudSim closely replicates the statistical and spatial patterns of fraud and provides a framework for future work in this area.