Anti-fraud System Research Articles

A multi-view camera-based anti-fraud system and its applications

Anti-fraud system is very useful in many intelligent applications. With the development of the financial field, anti-fraud system is becoming more and more important. But conventional face recognition techniques cannot distinguish real faces and masks effectively from the video stream. In addition, computing the whole video stream is redundant and time-consuming. So computing some key frames selected from video stream is more effective, but many frames gotten randomly from video stream don’t contain any faces. So in this paper, we propose a new method only with a camera to estimate a person’s behavior to detect whether a person is fraudulent. A camera-based anti-fraud system requires a series of representative video frames (i.e. key frames) from the video stream. First, a set of key frames are extracted from the video stream using our active key frame selection algorithm. The criterion is that the contents of the video stream are maximally covered by these frames. Then, face features are obtained using Dlib. Finally, a probabilistic model is proposed to estimate a person’s behavior. Experimental results have demonstrated that: 1) our key frame selection algorithm can reduce redundant frames effectively; 2) our system can estimate a person’s behavior in real time.

The European Union Institutional Network on Anti-Fraud

Protection of the financial interests of the European Union (EU) is a key element of the EU policy agenda. Transparent use of public money is crucial for two separate reasons: first, for strengthening citizens' confidence in the activities of the EU; second, to offer companies a healthy framework in which to grow and be competitive. According to the European Commission, risks from fraud against the EU’s financial interests amount to about €3 billion per year, roughly 2% of the EU's annual budget. Cohesion policy is considered to be one of the most critical sectors, with regional development policy being the most affected by fraudulent behaviour. To the contrary, tax fraud in all its forms – according to the European Commission's estimates – amounts to €1 trillion a year in the EU, or €2 000 per European citizen. Following the entry into force of the Treaty of Lisbon, the instruments available to protect the EU’s financial interests were substantially strengthened. A composite institutional architecture was designed to prevent and combat fraud. This study is devoted to the description of the institutional architecture designed to tackle EU budget fraud and its criticalities. The anti-fraud system related to the EU budget is based on a multi-layered network of cooperation. The first layer is composed of horizontal cooperation among EU institutions and other EU bodies (e.g. EU agencies). The second and third layers are based on vertical relationships: between EU bodies and national authorities, and between EU bodies and international organisations. Cooperation between EU bodies and national administrations consists of mutual efforts to prevent, detect and correct irregularities and fraud that might affect the use of EU funds. National authorities prosecute and report on cases of fraudulent use of EU funds to the European Commission. Cooperation between EU and international organisations is aimed at, first, coordinating efforts to monitor and combat fraud and, second, at encouraging harmonisation of normative frameworks on fraud, corruption and mismanagement of public funds. Nine EU bodies are specifically dedicated or entitled to carry out tasks concerned with detecting and sanctioning fraudulent behaviour. These are: (1) the European anti-fraud office; (2) the European Commission; (3) the European Parliament (and specifically the Committee on Budgetary Control); (4) the Council; (5) the European Court of Auditors; (6) Eurojust; (7) the European Police Office; (8) the European Court of Justice; and (9) the EU Ombudsman. These EU bodies perform four key tasks with regard to combating fraud: (1) policy-making; (2) scrutiny; (3) assistance; (4) reporting. Depending on which EU body is involved, the moment at which tasks are carried out (e.g. before a fraud is detected, rather than when fraudulent behaviour is sanctioned) and the typology of fraud concerned, cooperation, overlap, or even contrast may characterise the EU institutional architecture against fraud. The debate as to how to improve the efficiency of the EU institutional architecture aimed at protecting EU financial interests is ongoing. At the institutional level, the main topic of discussion concerns the establishment of the European Public Prosecutor's Office. Further improvements are expected through the digitalisation of administrative procedures, and by closer intra-institutional cooperation.

Investigation of methods of counteracting corporate fraudulence: accounting-legal approaches to the identification of abusonment

As the study shows, an urgent issue for businesses today is the problems of corporate fraud and the counteracting measures. Despite the continuous development of internal control and audit systems, business losses from fraud in enterprises are growing every year. The risks of fraud are growing in an inefficiently controlled environment and it is not enough to use standard audit methods to detect fraud. Therefore, it is vital to study the issues related to the organization of an effective system of countering fraud. Taking into account the existing experience and world experience in counteracting this negative phenomenon, a study is conducted to establish an internal security and anti-fraud system at the enterprise and it is proposed to create the Financial Investigation Agency at the enterprise itself, which includes services: information and analytical control, internal audit, financial investigations and psychological prevention of violations. This will streamline the work of the internal security service, create and implement control procedures, redistribute the powers between the units of the enterprise at different levels. The tables of abuse indicators and the structure of the library of typical schemes of abuse in the article allow to adapt to the work of new employees of the internal audit service, regardless of their experience, reduce the risks of key business processes and improve their effectiveness; they can be used to identify, rank and assess potential risks of fraud.Research results shows that one of the departments of fraudulent activities is the department of finance and accounting and one of the types of financial fraud is the falsification of financial statements, which is extremely difficult to identify and prevent, in addition to deliberate distortions, there are distortions that are the result of conflicts of professional judgment on the application of regulations and accounting regulations. The article examines the risks that can arise from fraudulent financial reporting, and the knowledge of which will counteract this type of fraud.

Investigation of Methods of Counteracting Corporate Fraudulence: Accounting-Legal Approaches to the Identification of Abusonment

As the study shows, an urgent issue for businesses today is the problems of corporate fraud and the counteracting measures. Despite the continuous development of internal control and audit systems, business losses from fraud in enterprises are growing every year. The risks of fraud are growing in an inefficiently controlled environment and it is not enough to use standard audit methods to detect fraud. Therefore, it is vital to study the issues related to the organization of an effective system of countering fraud. Taking into account the existing experience and world experience in counteracting this negative phenomenon, a study is conducted to establish an internal security and anti-fraud system at the enterprise and it is proposed to create the Financial Investigation Agency at the enterprise itself, which includes services: information and analytical control, internal audit, financial investigations and psychological prevention of violations. This will streamline the work of the internal security service, create and implement control procedures, redistribute the powers between the units of the enterprise at different levels. The tables of abuse indicators and the structure of the library of typical schemes of abuse in the article allow to adapt to the work of new employees of the internal audit service, regardless of their experience, reduce the risks of key business processes and improve their effectiveness; they can be used to identify, rank and assess potential risks of fraud. Research results shows that one of the departments of fraudulent activities is the department of finance and accounting and one of the types of financial fraud is the falsification of financial statements, which is extremely difficult to identify and prevent, in addition to deliberate distortions, there are distortions that are the result of conflicts of professional judgment on the application of regulations and accounting regulations. The article examines the risks that can arise from fraudulent financial reporting, and the knowledge of which will counteract this type of fraud.