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Diekmann, A and Jann, B (2010)

Benford’s Law and Fraud Detection: Facts and Legends

German Economic Review 11(3), 397–401.

ISSN/ISBN: Not available at this time. DOI: Not available at this time.



Abstract: Is Benford’s law a good instrument to detect fraud in reports of statistical and scientific data? For a valid test, the probability of ‘false positives’ and ‘false negatives’ has to be low. However, it is very doubtful whether the Benford distribution is an appropriate tool to discriminate between manipulated and nonmanipulated estimates. Further research should focus more on the validity of the test and test results should be interpreted more carefully.


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Reference Type: Journal Article

Subject Area(s): Accounting, Economics