Enigma- Coding4Integrity

Developing an accurate, affordable fraud detection and whistle-blowing system that will help authorities to  investigate fraud seamlessly while ensuring that the public is able to report fraud safely and anonymously. 

This project uses technology to fight corruption within our African Countries, specifically Kenya. We will be using machine learning, Artificial Intelligence and other software tools to detect fraudulent activities within the public procurement system while allowing the public to anonymously report any fraud.

How the system works

This system is designed for 2 end users:

1. Anti-corruption Agency [for speedy investigations and for easy collaboration between authorities]
2. The general public [for use in anonymous whistle-blowing]

Ideally, the fraud detection model will be deployed at Treasury for use in the IFMIS system. We have trained the model to be able to detect fraud, using data that has various features such as:

1. Time taken between transactions (usually fraud takes place when many transactions are done together)
2. The nature of the transaction
3. The amount of transaction.
4. Other features as will be informed to constitute 'fraud'.

Once fraud is detected, the system automatically flags these transactions and alerts sent automatically to 3 independent parties. For example: if fraud occurs within the Kenya Revenue Authority, then the alerts are sent to:

1. An officer in the Anticorruption Office (EACC)
2. An officer in Kenya Revenue Authority (KRA)
3. An officer at the Director for Public Prosecutions (DPP)

The Problem

Every year, $1.26 Trillion is lost through procurement and contractor fraud, globally. That’s over 1.5% of GDP growth per year! 

Kenya is losing an estimated Kshs 608.0 bn (7.8% of Kenya's GDP) to corruption annually. That’s about a 1/3rd of its National Budget Annually.

Further, every single day, a normal kenyan citizen in a public office is at a crossroads as to whether to report these crimes. The decision is hard to make because they risk losing their lives if they do so, or will risk constantly living under threat and danger to themselves and their family.

In essence, government fraud refers to illegal acts that intentionally divest the government of funds through deception or scams. When the government gets swindled, taxpayers pay the price which intern makes the prices of products inflate leading to extreme poverty levels among the community.

Corruption affects young people in several ways whether its access to education; good education, When funds gets misused, when funds vanish, its the youth who end up without employment .

Target User

1. Ethics and Anti-corruption Commission.[EACC]

To strengthen their investigation through automated system alerts as well 

as backed up information from the public, to start an investigation.

1. General Public [Kenyans]

For safe and anonymous whistle-blowing that guarantees safety to the members of the public  and their loved ones and promote free and fair bidding process.

Our system aims at ensuring utility of public funds efficiently through promotion of transparent procurement and contractor processes, free and fair bidding processes while ensuring safe anonymous whistle-blowing process to encourage accountability.

Potential  Users

Justin is a commissioner working in an anti-corruption agency, Justin likes to fight corruption but feels the system already in place is too slow. First, fraud cases are known long after they have happened and perpetrators almost get away with it.Second, sometimes whistle-blowers may lose their lives while  trying to report fraud.Justin hopes a solution to this can happen soon.

Ann is a procurement officer working in a public office.Ann loves her job and enjoys to serve her country. Recently, her manager asked her to ask a supplier to inflate a bid price. Ann wishes there is a safe way to report this to an independent authority. Her family has advised against it as she may lose her job and her friend at work has advised her that's how the system works. Ann is uncomfortable and confused on what to do.

Our system aims at ensuring utility of public funds efficiently through promotion of free,fair and transparent procurement and contractor bidding processes, while ensuring safe, anonymous whistle-blowing from the public to encourage accountability.

Value Proposition

1. Fraud detection at the procurement and

contractor bidding process

2. Quick and efficient collaboration between
relevant authorities(EACC/DPP/KRA/PPRA)

3. Automated chatbot that simplifies the

reporting process ensuring safety of the
whistle-blower.

4. SMS enabled for people without

smartphones

Problem solution fit evidence

Admin Dashboard

Shows fraud cases flagged over time as well as reported cases from the

public.

Admin alerts
ML fraud alerts are sent to 3 independent relevant authorities automatically. An investigation starts.

SMS/Web reports

Safe/Anonymous whistle-blowing.

Here's the project link

Our company Enigma, is developing an accurate and affordable fraud detection and whistle-blowing system that will help Anti Corruption Agencies and relevant authorities, investigate fraud seamlessly while ensuring that the general public is able to report fraud safely and anonymously.

This project uses technology to fight corruption within our African Countries, specifically Kenya. We will be using machine learning and other software tools to detect fraudulent activities within the public procurement system while allowing the public to anonymously report any fraud.

Advantage 1

Machine learning technique that
flags out fraud procurement
process and contractor bidding

Advantage 2

Safe and anonymous reporting(blockchain technology used which is hard to hack and secure)

Automated chatbot built with artificial intelligence that simplifies the
reporting process ensuring safety of the whistle-blower.

We expect our solution to serve over a million people in the next year for corruption is a vice that must be fought by all means and if gotten rid of, can lead to sustainable development in the community, and equitable distribution of government resources.

Our system aims at ensuring utility of public funds efficiently through

promotion of free,fair and transparent procurement and contractor bidding
processes, while ensuring safe anonymous whistle-blowing from the
public to encourage accountability.

Our company Enigma, is developing an accurate and affordable fraud
detection and whistle-blowing system that will help Anti
Corruption Agencies and relevant authorities, investigate fraud seamlessly while ensuring that the general public is able to report fraud safely and anonymously.

Fighting corruption is a sure way of boosting public trust, but governments are not doing enough to address it. Some even have an interest in doing nothing at all. Yet increasing trust would bring widespread benefits.

Successfully tackling corruption leads to a wider acceptance of public institutions, decreased poverty and inequality levels, respect for the rule of law, and strengthened political stability. It means more non-partisan decision-making, improved civil and political rights, and more income equality. Successfully combating corruption leads to a fairer and more effective allocation of resources and talents, improved public expenditures, and less reliance on aid. It leads to higher productivity and more innovative thinking. And it means lower crime rates and a smaller shadow economy, etc.

We usually measure our goals through doing the weekly reviews on ones progress and record it which provides how much one has moved forward towards their goal.

We also use milestones. if one hits the set milestones on time,then one is on track. else, we re-evaluate the milestones

The indicators we plan to use are the following:

1.Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

2.  Direct funds economic loss in relation to global gross domestic product (GDP)

1. Inadequate funds to develop the solution to completion

Our team is made up of three youths ; 2 software Engineers and an Artificial Intelligence Engineer. All of my teammates are from a humble background and have experienced corruption one way or another and that's why we all joined forces to build a solution which can curb it.

Currently we haven't partnered with any organization