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Scaling tests of Benford's law

Title: Scaling tests of Benford's law
Authors: Kössler, Wolfgang; Lenz, Hans-J.; Wang, Xing D.
Publication Year: 2026
Collection: FU Berlin: Refubium
Subject Terms: Goodness-of-fit; testscale invariance; data fraud; data manipulation; data quality; billing fraud; ddc:330
Description: The Benford law is used worldwide to detect non-conformance or data fraud in numerical data. In its weak form, it says that the first non-zero digit of a data item from a universe is not uniformly distributed, but logarithmically distributed. In particular, the first non-zero digit is One, with a probability of approximately 0.3. In the present paper, we suggest a new class of tests, the Ones Scaling tests, which are motivated by the scale-invariance property of Benford's law. Various scaling factors are chosen, and then the probability is tested that the product of the original observation with the scaling factors has the first significant digit One. Two distance measures of empirical and Benford probabilities are considered: the Euclidean and Mahalanobis distances. All our tests are illustrated by real and simulated data and are compared by competitive statistical tests. The analysis of specifically selected and designed simulated manipulations shows that this class of tests is a useful alternative for detecting special data fraud.
Document Type: article in journal/newspaper
File Description: 18 Seiten; application/pdf
Language: English
DOI: 10.17169/refubium-49857
DOI: 10.1080/00949655.2025.2571681
Availability: https://refubium.fu-berlin.de/handle/fub188/50132; https://doi.org/10.17169/refubium-49857; https://doi.org/10.1080/00949655.2025.2571681
Rights: https://creativecommons.org/licenses/by/4.0/
Accession Number: edsbas.75207E4C
Database: BASE