Rounding fraud is a type of financial fraud using
round numbers
A round number is an integer that ends with one or more " 0"s (zero-digit) in a given base. So, 590 is rounder than 592, but 590 is less round than 600. In both technical and informal language, a round number is often interpreted to stand for a ...
. It is frequently caught by the over usage of certain
statistically
Statistics (from German: ''Statistik'', "description of a state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industria ...
improbable number patterns. A notable example of rounding fraud was committed by the India-based company
Satyam Computer Services which was detected in 2019, and it is typical in the context of
Medicare fraud at
Skilled Nursing Facilities (SNFs). It is also an element in
microtransaction
Microtransactions, often abbreviated as mtx, are a business model where users can purchase virtual goods with micropayments. Microtransactions are often used in free-to-play games to provide a revenue source for the developers. While microtransact ...
scams involving
credit cards
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
and
front companies.
References
Consumer fraud
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