Internet Payment System, Forensic Accounting and Forensic Investigation: 3M Theory in the Financial Frauds

Abstract

In view of the rapid development in internet payment system and information and communication technology (ICT) that is changing banks mode of payment operations and bringing innovations to banking transactions, and even the method fraudsters operate as well as the likely effects of their activities on the banks and customers if not tackled, t h i s e x p l o r a t o r y p a p e r e x p l o r e s f orensic accounting, forensic investigation, digital environment, 3M (Manipulation, Misrepresentation, Misapplication) Theory in the Financial Frauds, electronic payment risk management, data mining technique, data matching technique and network security management in internet payment system within banking infrastructures. The paper highlights how forensic accounting and investigation can be employed to resolve the problem of internet and electronic payment fraud and crimes. It is recommended that investigative accounting that will comprehensively entails ICT-related fraud investigation, prevention of fraud and analyzing antifraud ICT-controls in addition to gathering non-financial and financial information should be intensified with modern technology within the banking security infrastructure. There should be fraud control software for financial frauds in digital environment. In today's world where technology has reached a different dimension, sophisticated cases in today's internet banking businesses cannot be revealed by traditional methods and the need for fraud control software against possible negative cases in information environment should be fulfilled in order to eliminate this complexity.