Data Mining for Detecting Carelessness or Mala Fide Intention

Fraud is one of the greatest challenges for the organizations, it needs a machine to be equipped with data mining algorithms , so that it can detect a crime pattern before it takes place. This paper will explore the data mining and Knowledge discovery in data base and later one of the most effective data mining techniques called Benford’s law for detecting the fake entries in medical insurance claims, electricity bills, water bills etc will be discussed. Applications of Benford’s law with limitations will be discussed so that machines exhibits some intelligence in its domain and later proposed to embed the Benford law in software to identify all the entries made by carelessness or with a mala fide intention .