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The Netherlands has been among a growing club of nations experimenting with algorithms in pursuit of efficiencies in detecting welfare fraud. The SyRI decision came as the outlines were emerging of the Dutch childcare benefits scandal, which saw false allegations of fraud against thousands of parents based in part on a machine learning model deployed by the national benefits authorities that illegally used dual nationality a risk characteristic.
Documents we obtained revealed that it was not just the city government trying to predict fraud in this comparatively deprived neighbourhood but also the national benefit authorities, tax authorities and the employment agency. The tech and data sharing practices were uncannily similar to the notorious SyRI.
With partner VPRO Argos, we discovered that dozens of low-income neighbourhoods across the Netherlands had been singled out for data-driven profiling in the same way as Overvecht. Other types of data analysed include age, gender, water and electricity consumption, children, partner relationships, vehicles, bank accounts and debts.
We later confirmed that this algorithm was the same one that had been part of the childcare benefits scandal, which saw thousands of parents wrongly labelled as fraudsters and prompted the eventual resignation of the Dutch government.
