Udbetaling Danmark welfare payments optimisation prompts controversy
Occurred: 2019
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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.
The data network allowed Udbetaling Danmark to automate checks required before benefits are granted, such as verifying income level or wealth. It also allowed the organisation to perform controls after a benefit had been granted to verify that a beneficiary’s situation had not changed.
However, it transpired that Udbetaling Danmark had access to the personal data of citizens who did 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 🤖
Documents 📃
Ministry of Industry, Business and Financial Affairs (2021). Towards a better social contract with big tech (pdf)
Research, advocacy 🧮
Jørgensen R.F. (2021). Data and rights in the digital welfare state: the case of Denmark
Madsen C.Ø., Lindgren I., Melin U. (2021). The accidental caseworker – How digital self-service influences citizens' administrative burden
Choroszewicz M., Mäihäniemi B. (2020). Developing a Digital Welfare State: Data Protection and the Use of Automated Decision-Making in the Public Sector across Six EU Countries
AlgorithmWatch (2020). In a quest to optimize welfare management, Denmark built a surveillance behemoth
DataEthics (2019). Is The Scandinavian Digitalisation Breeding Ground For Social Welfare Surveillance?
Justitia (2019). Udebetaling Danmarks systematiske overvågning (pdf)
Mploy (2017). Evaluering af projekt ”Samtaler og indsats der modvirker langtidsledighed” (pdf)
Ministry of Industry, Business and Financial Affairs (2021). Towards a better social contract with big tech (pdf)
News, commentary, analysis 🗞️
https://www.wired.com/story/algorithms-welfare-state-politics/
https://www.information.dk/telegram/2012/03/kommuner-advarer-milliontab-ved-stordrift
https://politiken.dk/viden/Tech/art7202917/Algoritmer-skal-udpege-langtidsledige
https://fagbladet3f.dk/artikel/ny-lov-om-udpegning-af-ledige-er-muligvis-ulovlig
https://www.dr.dk/nyheder/indland/400-sager-venter-computerprogrammer-afsloerer-barselsfup
Page info
Type: Incident
Published: March 2023
Last updated: November 2024