1. A computer-based method for detecting faults in a system, the method comprising: grouping a plurality of sensors communicatively linked with the system into at least one group of correlated sensors based upon a measure of correlation between the plurality of sensors; generating a hidden process driver for the at least one group of correlated sensors based upon a functional relationship between the hidden process driver and a set of sensor values produced by each of the correlated sensors; generating a sensor estimate based upon the hidden process driver corresponding to the at least one group of correlated sensors and at least one known process driver; and detecting a fault when a residual based on a difference between a sensor value produced by a particular one of the plurality of sensors and a sensor estimate corresponding to that particular sensor lies outside a predetermined acceptable range of residuals for the particular sensor.