There are 174,010 so called

marketing managers and so on.

There are, I have here

the entire data set for you,

820 job descriptions.

If we write down the leading digits,

if we count the number of leading digits.

We calculate the proportions.

Here we have

a little bit more variation

but once again the proportions

are pretty well-approximated

by Benford’s Law.

The number 1 shows up

way more often than the 2

shows up more often than the 3,

blah, blah, blah,

all the way to the 9.

9 is once again in last place.

So here we have another illustration

of Benford’s Law.

And now the questions,

what is that good for?

Let’s return to the slides

and I will tell you.

Here we're back from those data sets

and now you may say okay,

those sets were cute

What is this good for?

You won’t believe it.

Benford’s Law is used a lot

in fraud detection in particular

in accounting fraud detection.

Here I give you a reference

of a fascinating paper

where the author shows

how one can use

Benford’s Law to analyze

large data sets of tax returns

and actually see whether people cheat

on their taxes or not.

A big topic here in Switzerland

is the automatic information exchange

between Swiss tax authorities

and tax authorities in the EU

or the United States.

People are looking for people

who are cheating on their taxes

by hiding money in other accounts.

I have been recently told

by accountants working in this area

that they use Benford’s Law

by you looking at huge data sets,

big data you may refer,

by looking at huge data sets

and seeing whether they satisfy

Benford’s Law and if they don’t

they suspect accounting fraud.

In a related issue, some researchers

have looked at government data

in particular government budget data

coming out of the country

of Greece in the five years

before Greece joins the Euro.

And guess what?

Benford’s Law didn’t hold

even though it held in other countries

and it held in Greece

many years prior.

The authors conclude

that the government

doctored its budget

so that the country

could join the Euro.

So this Benford’s Law,

as strange as it looks to us,

it holds in many data sets

and it has real world applications.

How cool is that?

Let me wrap up,

we have seen Benford’s Law

and it's really used in accounting

to detect tax cheats

and other frauds.