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Udbetaling Danmark welfare payments optimisation system prompts controversy

An automated welfare fraud control system accessed the personal data of millions of Danish citizens, including those not receiving benefits, leading to accusations of privacy violations. Created in 2012 to profile unemployed citizens and streamline the payment of welfare benefits , Udbetaling Danmark used fraud control algorithms that can access the personal data of millions of citizens . Th e data network allowed Udbetaling Danmark to automate checks required before benefits are granted, such as verifying income level or wealth . It also allow ed the organisation to perform controls after a benefit had been granted to verify that a beneficiary’s situation ha d not changed . However, it transpired that Udbetaling Danmark ha d access to the personal data of citizens who d id not receive welfare payments , leading to complaints from legal, civil rights and privacy advocates, who described the situation as a 'surveillance nightmare’ . The controversy highlighted the challenges and pitfalls of using data and automation in the management of welfare payments. ➕ 2019. A case related to housing benefits revealed that Udbetaling Danmark’s database held significant personal information about a citizen who was not a beneficiary , leading to a complaint being filed with the Danish Data Protection Authority . System 🤖 Udbetaling Danmark 🔗 Documents 📃 Ministry of Industry, Business and Financial Affairs (2021). Towards a better social contract with big tech (pdf) Operator: Udbetaling Danmark Developer: The Agency for Labour Market and Recruitment (STAR) Country: Denmark Sector: Govt - welfare Purpose: Optimise welfare payments Technology: Classification algorithm; Machine learning Issue: Privacy; Surveillance Legal, regulatory 👩🏼‍⚖️ https://www.folketingstidende.dk/RIpdf/samling/20181/lovforslag/L209/20181_L209_som_vedtaget.pdf

Date it happened
2019-01-01
Organisation involved
Udbetaling Danmark
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