[HN Gopher] We investigated Amsterdam's attempt to build a 'fair...
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       We investigated Amsterdam's attempt to build a 'fair' fraud
       detection model
        
       Author : troelsSteegin
       Score  : 41 points
       Date   : 2025-06-12 13:54 UTC (2 days ago)
        
 (HTM) web link (www.lighthousereports.com)
 (TXT) w3m dump (www.lighthousereports.com)
        
       | djoldman wrote:
       | "Unbiased," and "fair" models are generally somewhat ironic.
       | 
       | It's generally straightforward to develop one if we don't care
       | much about the performance metric:
       | 
       | If we want the output to match a population distribution, we just
       | force it by taking the top predicted for each class and then
       | filling up the class buckets.
       | 
       | For example, if we have 75% squares and 25% circles, but circles
       | are predicted at a 10-1 rate, who cares, just take the top 3
       | squares predicted and the top 1 circle predicted until we fill
       | the quota.
        
         | Scarblac wrote:
         | But that's a bias, if circles are actually more likely to be
         | fraudulant.
        
           | djoldman wrote:
           | If the definition of "unbiased" and "fair" is that the model
           | flags squares and circles at a rate or proportion equal to
           | the population distribution of squares and circles, then the
           | model is unbiased and fair.
           | 
           | As noted above, this doesn't do anything for performance.
        
         | wongarsu wrote:
         | So if I want to make a model to recommend inkjet printers then
         | a quarter of all recommendations should be for HP printers?
         | After all, a quarter of all sold printers are HP.
         | 
         | As you say, that would be a crappy model. But in my opinion
         | that would also be hardly a fair or unbiased model. That would
         | be a model unfairly biased in favor of HP, who barely sell
         | anything worth recommending
        
           | djoldman wrote:
           | Yes, well there's the irony.
           | 
           | "Unbiased" and "fair" are quite overloaded here, to borrow a
           | programming term.
           | 
           | I think it's one of those times where single words should
           | expressly NOT be used to describe the intent.
           | 
           | The intent of this is to presume that the rate of the thing
           | we are trying to detect is constant across subgroups. The
           | definition of a "good" model therefore is one that
           | approximates this.
           | 
           | I'm curious if their data matches that assumption. Do
           | subgroups submit bad applications at the same rate?
           | 
           | It may be that they don't have the data and therefore can't
           | answer that.
        
             | teekert wrote:
             | I know a cop, they do public searchings for weapons or
             | drugs. Our law dictates fairness. So every now and then
             | they search an elderly couple. You know how this goes and
             | what the results are.
             | 
             | Any model would be unfair, age-wise but also ethnically.
             | 
             | To be most effective the model would have to be unfair. It
             | would suck to be a law abiding young specific ethnic
             | minority.
             | 
             | But does it help to search elderly couples?
             | 
             | I'm Genuinely curious what would be fair and effective
             | here. You can't be a Bayesian.
        
       | djohnston wrote:
       | > Equal performance across groups requires the share of people
       | who are flagged in each group is the same.
       | 
       | Sorry, this is retarded right? Why would you assume that all
       | groupings of people commit welfare fraud at the same rate?
        
         | BonoboIO wrote:
         | Yes it is. This is some ideal world thinking, that has nothing
         | to do with reality and is easily falsifiable, but only if you
         | want to see the real world.
        
         | throwawayqqq11 wrote:
         | Holy crap! Because it would be a predetermined bias and thus
         | pretty much unfair. I hate to be explicit about basics on HN.
        
           | djohnston wrote:
           | No... the pre-determined bias in this story is obviously that
           | all subgroups of people behave identically w.r.t. welfare
           | applications, which the data itself did not support and a
           | momentary consideration of socioeconomics would debunk. When
           | they tried to cludge the weights to fit their predetermined
           | bias, the model did so poorly on a pilot run that the city
           | shut it down.
        
             | throwawayqqq11 wrote:
             | Being flagged as potential fraud based on eg. ethnicity is
             | what you want to eliminate, so you have to start with the
             | assumption of an even distristribution.
             | 
             | From the article:
             | 
             | > Deciding which definition of fairness to optimize for is
             | a question of values and context.
             | 
             | This optimization is the human feedback required to not
             | have the model stagnate in a local optimum.
        
         | andy99 wrote:
         | The better definition of equal performance would obviously be
         | that the metrics for the detector - accuracy or false positive
         | rate etc would be the same for all groups.
         | 
         | I won't comment on why it's defined the way that it is.
         | 
         | Edit: it looks like they define several metrics, including ones
         | like I mention above that consider performance and at least one
         | based on what number or percentage is flagged in each group.
        
           | parpfish wrote:
           | Or that the error distributions are equal across groups. That
           | way you could still detect that one group is committing fraud
           | at a higher rate, but false positives/negatives occur at the
           | same rate in each group
        
         | ordu wrote:
         | The goal is to avoid penalizing people for their skin color, or
         | for gender/sex/ethnicity/whatever. If some group have higher
         | rate of welfare fraud, the fair/unbiased system must keep false
         | positives for that group at the same level as for general
         | population. Ideally there should be no false positives at all,
         | because they are costly for people, who were marked wrongly,
         | but sadly real systems are not like that. So these false
         | positives have to be spread over all groups proportionally to
         | sizes of the groups.
         | 
         | Though the situation is more complex than that. What I
         | described is named "False Positive Share" in the article (or at
         | least I think so), but the article discusses other metrics too.
         | 
         | The problem is that the policy should make the world better,
         | but if the policy penalizes some groups for law breaking, then
         | it can push these groups to break the law even more. It is
         | possible to create biases this way, and it is possible to do it
         | accidentally. Or, rather, it is hard not to do it accidentally.
         | 
         | I'd recommend to read "Against Prediction", it has a lot of
         | examples how it works. For example, biased False Negatives are
         | also bad, they make it easier for some groups to break the law.
        
         | tbrownaw wrote:
         | There are multiple different ways to measure performance. If
         | different groups have different rates of whatever you're
         | predicting, it is not possible to have all of the different
         | ways of measuring performance agree on whether your model is
         | fair or not.
        
       | BonoboIO wrote:
       | The article talks a lot about fairness metrics but never mentions
       | whether the system actually catches fraud.
       | 
       | Without figures for true positives, recall, or financial
       | recoveries, its effectiveness remains completely in the dark.
       | 
       | In short: great for moral grandstanding in the comments section,
       | but zero evidence that taxpayer money or investigative time was
       | ever saved.
        
       | tomp wrote:
       | Key point:
       | 
       |  _The model is considered fair if its performance is equal across
       | these groups._
       | 
       | One can immediately see why this is problematic, easily by
       | considering equivalent example in less controversial (i.e.
       | emotionally charged) situations.
       | 
       | Should basketball performance be equal across racial, or sex
       | groups? How about marathon performance?
       | 
       | It's not unusual that relevant features are correlated with
       | protected features. In the specific example above, being an
       | immigrant is likely correlated with not knowing the local
       | language, therefore being underemployed and hence more likely to
       | apply for benefits.
        
         | atherton33 wrote:
         | I think they're saying something more subtle.
         | 
         | In your basketball analogy, it's more like they have a model
         | that predicts basketball performance, and they're saying that
         | model should predict performance equally well across groups,
         | not that the groups should themselves perform equally well.
        
           | tomp wrote:
           | You're right, I misinterpreted it.
        
       | wongarsu wrote:
       | A big part of the difficulty of such an attempt is that we don't
       | know the ground truth. A model is fair or unbiased if its
       | performance is equally good for all groups. Meaning e.g. if 90%
       | of cases of Arabs committing fraud are flagged as fraud, then 90%
       | of cases of Danish people committing fraud should be flagged as
       | fraud. The paper agrees on this.
       | 
       | The issue is that we don't know how many Danish commit fraud, and
       | we don't know how many Arabs commit fraud, because we don't trust
       | the old process to be unbiased. So how are we supposed to judge
       | if the new model is unbiased? This seems fundamentally impossible
       | without improving our ground truth in some way.
       | 
       | The project presented here instead tries to do some mental
       | gymnastics to define a version of "fair" that doesn't require
       | that better ground truth. They were able to evaluate their
       | results on the false-positive rate by investigating the flagged
       | cases, but they were completely in the dark about the false-
       | negative rate.
       | 
       | In the end, the new model was just as biased, but in the other
       | direction, and performance was simply worse:
       | 
       | > In addition to the reappearance of biases, the model's
       | performance in the pilot also deteriorated. Crucially, the model
       | was meant to lead to fewer investigations and more rejections.
       | What happened instead was mostly an increase in investigations ,
       | while the likelihood to find investigation worthy applications
       | barely changed in comparison to the analogue process. In late
       | November 2023, the city announced that it would shelve the pilot.
        
       | zeroCalories wrote:
       | Does anyone know what they mean by reweighing demographics? Are
       | they penalizing incorrect classifications more heavily for those
       | demographics, or making sure that each demographic is equally
       | represented, or something else? Putting aside the model's
       | degraded performance, I think it's fair to try and make sure the
       | model is performing well for all demographics.
        
       | 3abiton wrote:
       | > A more concerning limitation is that when the city re-ran parts
       | of its analysis, it did not fully replicate its own data and
       | results. For example, the city was unable to replicate its train
       | and test split. Furthermore, the data related to the model after
       | reweighting is not identical to what the city published in its
       | bias report and although the results are substantively the same,
       | the differences cannot be explained by mere rounding errors.
       | 
       | Very well written, but that last part id concerning and point to
       | one part: did they hire interns? How cone they do not have
       | systems? It just cast a big doubt on the whole experiment.
        
       | tbrownaw wrote:
       | > _But the model designers were aware that features could be
       | correlated with demographic groups in a way that would make them
       | proxies._
       | 
       | There's a huge problem with people trying to use umbrella usage
       | to predict flooding. Some people are trying to develop a computer
       | model that uses rainfall instead, but watchdog groups have raised
       | concerns that rainfall may be used as a proxy for umbrella usage.
       | 
       | (It seems rather strange to expect a statistical model trained
       | for accuracy to infer and indirect through a shadow variable that
       | makes it _less_ accurate, simply because it 's something easy for
       | humans to observe directly and then use as a lossy shortcut or to
       | promote alternate goals that aren't part of the labels being
       | trained for or whatever.)
       | 
       | > _These are two sets of unavoidable tradeoffs: focusing on one
       | fairness definition can lead to worse outcomes on others.
       | Similarly, focusing on one group can lead to worse performance
       | for other groups. In evaluating its model, the city made a choice
       | to focus on false positives and on reducing ethnicity
       | /nationality based disparities. Precisely because the reweighting
       | procedure made some gains in this direction, the model did worse
       | on other dimensions._
       | 
       | Nice to see an investigation that's serious enough to acknowledge
       | this.
        
       | talkingtab wrote:
       | Is this crazy or what? My take away is that the factors the city
       | of Amsterdam is using to predict fraud are probably not actually
       | predictors. For example if you use the last digit of someones
       | phone number as a fraud predictor, you might discover there is a
       | bias against low numbers. So you adjust your model to make it
       | less likely that low numbers generate investigations. It is
       | unlikely that your model will be any more fair after your
       | adjustment.
       | 
       | One has to wonder if the study is more valid a predictor of the
       | implementers' biases than that of the subjects.
        
       | thatguymike wrote:
       | Congrats Amsterdam: they funded a worthy and feasible project;
       | put appropriate ethical guardrails in place; iterated
       | scientifically; then didn't deploy when they couldn't achieve a
       | result that satisfied their guardrails. We need more of this in
       | the world.
        
         | tbrownaw wrote:
         | What were the error rates for the various groups with the old
         | process? Was the new process that included the model actually
         | _worse_ for any group, or was it just uneven in how much better
         | it was?
        
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