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 improbable number patterns. A notable example of rounding fraud was committed by the India-based company
Satyam Computer Services
Mahindra Satyam (formerly Satyam Computer Services Limited) was an Indian information technology (IT) services company based in Hyderabad, India, offering software development, system maintenance, packaged software integration and engineering ...
which was detected in 2019, and it is typical in the context of
Medicare fraud
In the United States, Medicare fraud is the claiming of Medicare (United States), Medicare health care reimbursement to which the claimant is not entitled. There are many different types of Medicare fraud, all of which have the same goal: to collec ...
at
Skilled Nursing Facilities
A nursing home is a facility for the residential care of older people, senior citizens, or disabled people. Nursing homes may also be referred to as care homes, skilled nursing facilities (SNF), or long-term care facilities. Often, these terms ...
(SNFs). It is also an element in
microtransaction
Microtransaction (mtx) refers to a business model where users can purchase in-game virtual goods with micropayments. Microtransactions are often used in free-to-play games to provide a revenue source for the developers. While microtransactions ...
scams involving
credit cards and
front companies.
References
Consumer fraud
{{crime-stub