Double-Crossing Benford's Law
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Benford's law is widely used for fraud-detection nowadays. The underlying assumption for using the law is that a "regular" dataset follows the significant digit phenomenon. In this paper, we address the scenario where a shrewd fraudster manipulates a list of numbers in such a way that still complies with Benford's law. We develop a general family of distributions that provides several degrees of freedom to such a fraudster such as minimum, maximum, mean and size of the manipulated dataset. The conclusion further corroborates the idea that Benford's law should be used with utmost discretion as a means for fraud detection.
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