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February 14, 20260 citationsOpen Access

Scaling tests of Benford's law

WKWolfgang KösslerHLHans-J. LenzXWXing D. Wang

Key Points

  • This research aims to develop new tests based on Benford's law to detect data fraud more effectively.
  • Introduced Ones Scaling tests leveraging Benford's scale-invariance property.
  • Selected various scaling factors for analysis.
  • Compared empirical data to Benford probabilities using Euclidean and Mahalanobis distances.
  • Applied tests on both real and simulated datasets.
  • Demonstrated that Ones Scaling tests are effective for detecting specific data fraud.
  • Highlighted differences between empirical data and expected Benford distributions.
  • Showed varying efficacy of tests based on distance measures used.

Abstract

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.

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Cite This Study

Kössler et al. (2026) studied this question.

synapsesocial.com/papers/699011172ccff479cfe57819https://doi.org/10.17169/refubium-49857
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