Audit Selection and Fraud Risk Management

Pondera’s system helps government organizations with revenue maximization and audit selection for unemployment insurance systems and state & local tax programs. It analyzes individual claimants and filers, the businesses operating in your jurisdiction, and the relationships between the business and employers to detect individual anomalies and collusive tax fraud schemes.

Pondera identifies many hard-to-detect tax fraud schemes including fictitious, unregistered and under-reporting businesses, as well as individual filers and claimants violating program rules such as claiming unemployment insurance while currently employed, incarcerated, or otherwise ineligible. It also makes extensive use of social media analytics to help prioritize and support audits.

Non-reporting and Under-reporting Businesses

Pondera’s system identifies businesses that are operating in a jurisdiction but are unknown to the tax authority. Pondera integrates third-party data, social analysis, and peer comparison algorithms to help clients identify businesses operating in their jurisdiction that are either not registered to do business or likely under-reporting their gross receipts. Leads are then prioritized for the jurisdiction to know which subjects they should pursue first.

Fictitious Employer Schemes

Fraudsters create fictitious employers and associate employees using stolen identities to collect inappropriate unemployment benefits and income tax refunds. Pondera uses behavioral algorithms to identify and investigate potential fictitious business schemes which allows the tax authority to investigate the validity of the employer before benefits and refunds are paid.

Unemployment Claimant Eligibility Violations

The Pondera system utilizes pre-built and configurable algorithms to detect potential violations of eligibility requirements for unemployment claims. Violations can include work availability, incarceration status, out-of-state residency, and deceased claimants. Our analysis tools allow the discovery of other complex collusive schemes with observed shared characteristics such as addresses, bank accounts, and email addresses.

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