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Dutch Student Finance Scandal: Compensation for Discriminatory Algorithm
The Dutch government is compensating over 10,000 students wrongly accused of fraud due to a discriminatory algorithm used by the student finance agency DUO.
Dutch
Netherlands
Human Rights ViolationsLabour MarketNetherlandsGovernmentFraudDiscriminationCompensationAlgorithm
DuoMinistry Of EducationCulture And SciencePwcInvesticoNos
Eppo BruinsRobbert Dijkgraaf
- What was the main flaw in DUO's fraud detection system?
- The accusations of fraud were based on a discriminatory algorithm that disproportionately targeted students with migration backgrounds. This was revealed by an investigation which showed students living in neighborhoods with a high percentage of people with migrant backgrounds were twice as likely to be investigated.
- Will students who committed fraud also receive compensation?
- Even students who knowingly misused the student grant will be compensated, as the evidence used against them was illegally obtained. The exact number of students who committed fraud is unknown.
- What was the outcome of the court case concerning DUO's actions?
- A court case in late October sided with a student challenging DUO's decision, stating that the evidence was obtained illegally. The government decided on preemptive compensation to avoid further legal challenges and to learn from past mistakes like the child benefit scandal.
- What prior knowledge did the Ministry of Education have about the algorithm's bias?
- The discriminatory algorithm was implemented by DUO despite the ministry of Education being aware as early as 2010 that it disproportionately affected students with non-Dutch-sounding names. The selection method was based on \"practical experience\" and lacked formal validation.
- How many students will receive compensation due to the discriminatory algorithm used by DUO?
- The Dutch government will compensate over 10,000 students and former students who were wrongly accused of fraud by the student finance agency DUO between 2012 and 2023. The compensation totals approximately \u20ac61 million.