Financial Scams Research Articles

Financial scams in India: A case study on Satyam computer scandal 2006-2009

Financial scams in India: A case study on Satyam computer scandal 2006-2009

Diagnosing Qur’ānic Precepts on Wealth Creation in Digital Age

This study examines how Islamic economic principles can provide guidance for ethical wealth creation, protection, and distribution in the rapidly evolving digital economy, particularly in the face of cybercrime and financial scams. The research investigates the adaptability of Islamic teachings to digital economic activities, emphasizing the importance of lawful enterprise and social responsibility. The study employs qualitative analysis of Qur'anic precepts, Hadiths, and contemporary Islamic scholarship. The findings reveal that Islamic wealth management principles are not only compatible with but also vital for navigating the complexities of the digital age. These principles advocate for ethical earning, robust protection of wealth through cybersecurity measures, and the socially responsible distribution of wealth. The study emphasizes the necessity for precise legal frameworks that align with Islamic ethical standards in digital commerce, alongside a strong emphasis on education regarding digital economic activities within an Islamic framework. Engaging in the digital economy under Islamic guidelines is feasible and advantageous, highlighting the critical role of international cooperation among Muslim countries to combat cybercrime and ensure a secure, equitable digital economic environment. This approach fosters economic resilience and social welfare in accordance with Islamic values.

A Study on Financial Scams of the Financial Market in India

Financial scams are intentional deceptions involving financial transactions aimed at personal gain. These scams can constitute criminal activity as well as civil law violations. Many scams are characterized by complex financial transactions executed by professionals with malicious intent.

Firm-Level Investor Sentiment and Risk: Insight from Behavioral Finance

The aim of this study to analyses the investor sentiment, attentions and types of risk which are incurred after specific event like scam etc. This study used monthly dataset of prices from 2006 to 2022 due to availability of data. The event approach is used for data analysis with different data segregation like affected or unaffected datasets of firms. Firm-specific sentiment and attention increased slightly after the scam, indicating market interest and better firm perceptions. Political, noise trader, arbitrage, sovereign, and realised volatility increased during events. The perception of instability and uncertainty suggests scams increase market fears and risk aversion while attracting attention. A detailed comparison between scammed and unaffected firms showed stark differences. Financial scams lowered market confidence and firm stability, causing negative sentiment, lower attention, and higher risks across multiple dimensions. The differential impact suggests that scams' reputational and operational damage can cripple a firm's finances and investor perceptions. The study affects financial economics and market behaviour theory. The study shows how firm-specific sentiment and attention affect risk measures, explaining market dynamics' psychological and behavioural underpinnings. Financial anomalies like scams affect market outcomes due to investor sentiment and attention. Sentiment can force through risk perceptions, so integrated financial analysis models must account for behavioural and psychological factors. Financial scandals affect firm-specific and market-wide variables, according to event studies. With the insights, investors, regulators, and corporate managers can improve market and regulatory practices. This study examines how financial scams affect firm-specific and market-wide variables using theory and practice during and after event.

CORPORATE GOVERNANCE: A NEW TRANSFORMATION IN ACCOUNTING AND ITS IMPACT ON INVESTORS

The sole objective of every business is the progressive trend of profit and the overwhelming trust of the investors. This can be realized only when the company works systematically adhering to all codes of conduct in the interest of its stakeholders. The ever-rising cases of financial scams and fraud laid an immediate pressure on the corporate sector to reduce the frequency of the rising corporate evils and to rethink and reframe effective procedural codes, policies, and laws to prevent their further culmination in the nation. Corporate Governance (CG) emerges as the only solution to this uprooting problem in the arena of accounting.Corporate Governance (CG) is a mechanism of accountingthat involves the system and the procedures through which companies are operated and regulated. Though the entire process of CG is managed by the Board of Directors along with the Audit Committee but key role of nominating and selecting these two parties arerelied on the shareholders. The basic principles of corporate governance are fairness, accountability, transparency, and responsibility which are also known as the four pillars of CG that if effectively adopted lead to a massive reduction in corporal frauds and mismanagement and positively improve the faith of the stakeholders. This paper tries to examine the impact of corporate governance on investors. The study is based on the primary data collected from 150 respondents and regression analysis was used to derive the conclusion.

Digital banking fortification: a real-time isolation forest architecture for detecting online transaction fraud

Since the use of the Internet has increased exponentially, numerous organizations, including the financial industry, offer services online. As a result, financial scams are expanding in quantity and complexity worldwide, resulting in massive revenue losses and making digital fraudulent transactions a severe issue. Abnormal attempts and illegal access are instances of these dangers that fraudulent activity detection systems must identify. Machine learning and data mining approaches have been extensively used to address this issue in recent years. However, these approaches must be enhanced regarding real-time detection speed, tackling enormous amounts of data, and finding undiscovered attack patterns. Consequently, the present study provides a real-time architecture for averting and identifying digital transaction fraud, which relies on the Isolation Forest (IForest) approach and big data analytic tools, including Spark Streaming, sparkling water, Kafka, and PostgreSQL. This architecture seeks to improve present detection strategies by increasing accuracy for detection when considering enormous amounts of data. Two real datasets of online transactional fraud are used to assess the proposed architecture, and the findings are compared to relevant studies. The investigation results showed that IForest performed flawlessly, achieving an accuracy of 0.99 in two datasets.

Detection of Korean Phishing Messages Using Biased Discriminant Analysis under Extreme Class Imbalance Problem

In South Korea, the rapid proliferation of smartphones has led to an uptick in messenger phishing attacks associated with electronic communication financial scams. In response to this, various phishing detection algorithms have been proposed. However, collecting messenger phishing data poses challenges due to concerns about its potential use in criminal activities. Consequently, a Korean phishing dataset can be composed of imbalanced data, where the number of general messages might outnumber the phishing ones. This class imbalance problem and data scarcity can lead to overfitting issues, making it difficult to achieve high performance. To solve this problem, this paper proposes a phishing messages classification method using Biased Discriminant Analysis without resorting to data augmentation techniques. In this paper, by optimizing the parameters for BDA, we achieved exceptionally high performances in the phishing messages classification experiment, with 95.45% for Recall and 96.85% for the BA metric. Moreover, when compared with other algorithms, the proposed method demonstrated robustness against overfitting due to the class imbalance problem and exhibited minimal performance disparity between training and testing datasets.

"Centralized or Decentralized?": Concerns and Value Judgments of Stakeholders in the Non-Fungible Tokens (NFTs) Market

Non-fungible tokens (NFTs) are decentralized digital tokens to represent the unique ownership of items. Recently, NFTs have been gaining popularity and at the same time bringing up issues, such as scams, racism, and sexism. Decentralization, a key attribute of NFT, contributes to some of the issues that are easier to regulate under centralized schemes, which are intentionally left out of the NFT marketplace. In this work, we delved into this centralization-decentralization dilemma in the NFT space through mixed quantitative and qualitative methods. Centralization-decentralization dilemma is the dilemma caused by the conflict between the slogan of decentralization and the interests of stakeholders. We first analyzed over 30,000 NFT-related tweets to obtain a high-level understanding of stakeholders' concerns in the NFT space. We then interviewed 15 NFT stakeholders (both creators and collectors) to obtain their in-depth insights into these concerns and potential solutions. Our findings identify concerning issues among users: financial scams, counterfeit NFTs, hacking, and unethical NFTs. We further reflected on the centralization-decentralization dilemma drawing upon the perspectives of the stakeholders in the interviews. Finally, we gave some inferences to solve the centralization-decentralization dilemma in the NFT market and thought about the future of NFT and decentralization.

Awareness On Online Financial Scams: A Case Study in Malaysia

Malaysia has seen an increase in digitization in almost all aspects of its people's daily lives, especially in the usage of online banking or e-wallet transactions. However, a rise in online financial scams in Malaysia has been reported recently. People have become unaware of the transparency of their information as a result of their reliance on the Internet. This study aims to identify the awareness on online financial scam in Malaysia using the Technology Threat Avoidance Theory (TTAT) and Theory of Planned Behavior (TPB). Independent variables included are cybersecurity knowledge, perceived severity, subjective norm, as well as security and privacy concerns. The data collection method in this study is primary data and 384 sets survey questionnaires were collected. Partial Least Square Structural Equation Modelling (PLS-SEM) software was used to generate the statistical analysis. The results showed that cybersecurity knowledge, perceived severity, and subjective norm have a significant relationship with the awareness on online financial scam, while security and privacy concerns have an insignificant relationship with the awareness on online financial scam. This study will provide an insight for Malaysians, particularly companies, and policymakers so that they can better understand the ways to increase awareness on online financial scam.

Pclf: Parallel cnn-lstm fusion model for sms spam filtering

Short Message Service (SMS) is widely used for its accessibility, simplicity, and cost-effectiveness in communication, bank notifications, and identity confirmation. The increase in spam text messages presents significant challenges, including time waste, potential financial scams, and annoyance for users and carriers. This paper proposes a novel deep learning model based on parallel structure in the feature extraction step to address this challenge, unlike the traditional models that only enhance the classifier. This parallel model fuses local and temporal features to enhance feature representation by combining convolutional neural networks (CNN) and long short-term memory networks (LSTM). The performance of this model has been evaluated on the UCI SMS Collection V.1 dataset, which comprises both spam and ham messages. The model achieves an accuracy of 99.28% on this dataset. Also, the model demonstrates good precision, recall, and F1 score. This paper aims to provide the best protection from unwanted messages for mobile phone users.

The Economics of Financial Scams: Evidence from Initial Coin Offerings

The Economics of Financial Scams: Evidence from Initial Coin Offerings

FORENSIC ACCOUNTING IN INDIAN PERSPECTIVE

The purpose of this article is to throw some light on the frauds in terms of account happens in India. From the available literature, the effective forensic accounting techniques are to be focused. There are two ways to implement the techniques which includes, first, introduce the forensic accounting methods in business and second, merge the traditional organizational control system with modern system of detecting forensic fraud with the help of forensic accountant. The conclusion of this article is detecting frauds and the causes behind not get detected on early stage. How to spot frauds by using different techniques and how to mitigate the fraud in India by using the techniques to spot the fraud timely.By focusing on the roots and avoiding the situation causing accounting frauds by implementing the forensic accounting. The novelty of this study is forensic accounting from view point of India. KEY WORDS: Forensic Accounting, Financial Scams, Fraud, Investigative Functions, Forensic Audit

Clinical Manifestations.

The capacity to handle money and personal finances is crucial for living independently. Cognitive decline can lead to financial mismanagement (e.g., forgetting to pay bills, overspending) and exploitation (e.g., falling for financial scams). While greater susceptibility to financial mismanagement and exploitation is commonly reported by carers of people with dementia, objective neuropsychological measures of these financial skills are scarce. It is also unclear whether profiles of change in financial skills vary across different stages and subtypes of dementia. A normative sample of 112 healthy controls and individuals with mild cognitive impairment (MCI; n = 16), Alzheimer's disease (AD; n = 7) or behavioural-variant frontotemporal dementia (bvFTD; n = 18) completed a novel neuropsychological Test of Financial Skills (TOFS), which assessed performance across three key areas: everyday financial tasks, susceptibility to financial scams and financial goal planning. For all patients and controls, measures of dementia severity (Clinical Dementia Rating Scale) and general cognition (Addenbrooke's Cognitive Examination, 3rd Ed.) were also collected. Relative to controls, AD and bvFTD patients showed lower overall performance on the TOFS, whereas MCI patients did not differ significantly from controls. While AD and bvFTD patients showed similar levels of impairment on everyday financial tasks and financial goal planning, bvFTD patients performed significantly worse on the financial scams subtest. Across all participants, lower TOFS performance was associated with greater dementia severity and cognitive impairment. Our results are consistent with previous studies of carer-reported changes in financial mismanagement and exploitation in people with dementia. Notably, we found important differences in the areas of financial skills impacted by different stages and subtypes of dementia. These findings provide novel insights into the different factors that contribute to deficits in financial skills in people with dementia, highlight the importance of objective neuropsychological assessments in this area, and open avenues for targeted financial support strategies.

Online shopping: a systematic review of customers’ perceived benefits and challenges during COVID-19 pandemic

Purpose The COVID-19 outbreak has disrupted the habits of customers as well as their shopping behavior. This study aims to critically examine the associated benefits and challenges of online shopping from the perspective of customers in the COVID-19 pandemic. Design/methodology/approach A systematic review of the relevant literature published between 2020 and 2022 was conducted via performing comprehensive search query in leading scholarly databases “Scopus and Web of Science” with the restriction of their predefined subject category of “Business.” Overall, 30 research studies were selected for the review and a significant number of studies were published in 2021 (n = 15). Findings The research findings revealed that customers are motivated to shop online because of perceived benefits such as time-saving, convenience, 24/7 accessibility, interactive services without physical boundaries, trust, website attractiveness and cost-saving. However, challenging factors such as financial scams, privacy concerns, poor quality of products and services, fake promotions and reduced social interaction have hindered the growth of online shopping. The recommendations regarding designing marketing strategies, secured transaction, multiple payment options, trust building, protection of privacy, promotion via social media, effective mechanism to secure and timely delivery of product are helpful to improve the service quality of online shopping. Originality/value The outcomes of this research are valuable to online retailers and policymakers, as it highlights how the benefits can enhance customers’ shopping intentions and minimize the impact of associated challenges. This study also recommends the redesigning of user-friendly interfaces of online shopping websites and ensures their privacy, security and performance on a regular basis.

SMART CTZEN: A DIGITAL STORYTELLING APP TO EMPOWER YOUTH’S AWARENESS IN CYBER SAFETY AND SECURITY

The impact of the COVID-19 epidemic on Malaysian educational institutions highlights the rise in cybercrime cases among students. Studies indicate that university students are the top users of the Internet with high daily internet usage, yet, this group of users are not only the victims but also the perpetrators of cyber threats and crimes. Despite being the top Internet users, youth aged 18-25 have been found to have limited understanding of cyber threats, making them more susceptible to such threats, or to become an accidental outlaw. Therefore, this study aims to uncover the types of threats that are prevalent among university students and ways to address these threats. This study found that majority of undergraduate students experienced cyberbullying, gaming addiction, depression and anxiety due to cyber threats, online sexual harassment and online financial scams. In order to address this contemporary phenomenon, this study proposes a digital storytelling application which aims to educate youth about strategies to recognize cyber threats, respond to these threats appropriately, and make informed decisions about their cyber behaviour. It also proposes that being vigilant about these strategies are in line with Islamic teachings and principles. This will equip them with the necessary knowledge and skills to protect themselves, their finances, and their safety, security and privacy in the cyber space, so that they are able to contribute to a safer digital community.

Financial Literacy among University Students and its Implications towards Financial Scams

The acquisition of financial literacy is crucial in facilitating improved financial decision-making and promoting the long-term financial stability of individuals, families, and the nation as a whole. It is anticipated that increased levels of financial literacy, particularly among younger cohorts, will result in enhanced economic indicators, improved payment records, and more sustainable levels of debt for both people and the nation. The attainment of a high quality of life is of paramount importance for Malaysia's progression towards achieving the status of a developed nation. However, it is worth noting that a significant proportion of Malaysians, specifically one out of every three individuals, perceive their level of financial awareness to be relatively low. Moreover, a significant disparity exists in the level of financial literacy among 15-year-old pupils in OECD and partner countries, such as Malaysia. This study attempts to explore conceptually the relationship between financial literacy and its impacts on financial scams among university students. This study will increase the level of financial literacy among Malaysians before embarking on any financial investments.

Corporate Governance Enhances the Performance of Financial Institutions: A Comparative Study on Banking Industry of Bangladesh

Corporate Governance refers to the manner by which organizations are administered and to what reason. It distinguishes who has power and responsibility, and who simply decides. Corporate Governance has become visible noticeably over the world particularly in business regions like banks, NBFIs, insurances, administrative bodies, and autonomous bodies. This study intends to critically notice the exhibition of financial institutions improved by ensuring great corporate governance and what are the deterrents holding behind to accomplish it. From this examination we can gather that, various sorts of financial scams and advance defaulting hampering the business enormous. We had compared information gathered from 20 banks including both conventional and Islamic bank contrasting year 2020 with year 2022 recorded and controlled under Bangladesh Bank's administration. The corporate governance practices in Bangladesh have been largely limited to financial Sector and the Banking sector can serve as a motivation for better corporate governance through its requirements and procedures for approving and monitoring loans. These results suggest that better corporate governance mechanisms are imperative for every banking company and should be encouraged for the interest of the investors and other stakeholders as well as company’s both financial & operational activities.

Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behavior

Purpose The purpose of this study is to critically examine a prevalent online scam mechanism, with the aim of understanding its exploitation of behavioral finance principles and group dynamics and propose effective countermeasures. Design/methodology/approach This study uses a blend of case study and thematic analysis, drawing from behavioral finance, social psychology and criminology, using primary source testimonies of victims to provide a detailed exploration of the scam’s operations. Findings This research uncovers the strategic use of four key principles: loss aversion, overconfidence, scarcity bias and social proof, within the scam operation. These tendencies are manipulated to induce victims to progressively invest into the fraudulent scheme, even amid growing suspicions. Research limitations/implications While the research elucidates on the workings of one specific online scam, it is necessary to explore if and how these principles are used in various other online fraudulent schemes, to develop comprehensive countermeasures. Practical implications The findings underscore the urgent need for enhanced public awareness, stronger corporate responsibility and robust regulatory oversight. There is a call for concerted efforts encompassing public education campaigns, fortified security protocols and strong legal frameworks for preventing such scams. Social implications The research emphasizes the need for collective action in ensuring a safe online space. This involves the individual user’s prudence, businesses’ proactive education initiatives and stringent legal actions against fraudulent activities. Originality/value This research offers novel insights into the nuanced manipulation of behavioral finance principles within online scams, based on empirical data from victim testimonials. These findings contribute to the understanding of the psychological mechanisms at play in online scams and are instrumental in formulating effective preventive strategies.

The Repercussion of Economic Offences in India

Economic offences form a separate category of crimes under criminal offences. Socioeconomic offences are crimes that have an impact on a society’s economic and financial well-being. These offences are usually committed by individuals or corporations with significant financial resources, and the economy’s results can be severe. A few high-profile incidents of socioeconomic offences have occurred in India in recent years, bringing the subject to the forefront of public attention. This blog article will look at the impact of socioeconomic crimes on the Indian economy, as were laws and regulations in place to combat them. This paper discus about various economic offences, the relevant legislation and concerned enforcement authorities and their various duties observed in different environmental conditions. Economic offences not only inflict pecuniary losses on individuals but also damage the national economy and have security implications as well. The offences of smuggling of narcotic substances, counterfeiting of currency and valuable securities, financial scams, frauds, money laundering and hawala transactions etc. evoke serious concern about their impact on national security. The economic activities are listed based on their offences and related to the law through investigative officers and related agencies or departments. This paper mainly focuses on the various offences all over India mainly concentrating on the metropolitan cities and their population ratio bases. This research deal with agitate economic offences detected by tenement officials and action taken by the Jurisdictional authority through their truth and fact of evidence. This article discusses the key economic crimes that are highlighted, as well as the numerous official government responses to the crime and the jurisdictional measures taken to defend against them under different conditions that promote both the development of the financial sector and the country

Online social media poses opportunities and risks in autistic youth: implications for services from a qualitative study.

Autistic people are vulnerable to developing mental health problems due to their difficulties in managing social situations and interpersonal relationships. The popular online social media (OSM) can be a potential solution to these concerns for their social lives as it allows non-face-to-face social interactions, however it remained unclear how this group is using these online platforms. This study explored their experiences of using online social media, and their perceived benefits and risks associated with this use. Qualitative data was collected through in-depth face to face interviews. We recruited 13 autistic young adults who were with normal intelligence from two community centers in Hong Kong. Interviews were conducted in a semi-structured format by experienced clinical psychologist and social workers. Four themes were identified from the data, namely: (1) Paradox of using OSM to supplement social needs; (2) Unpleasant social interactions in the online environment; (3) Restricted and repetitive pattern of interest leading to troubles in OSM use, and; (4) Privacy and personal safety issues. The results suggested that while OSM could be a useful tool for our participants to connect with existing friends and to meet new ones, their limitations, such as difficulties in understanding languages and social interaction as well as restricted patterns of interests could potentially put them at risk, including interpersonal conflicts, cyber-bullying, financial scams, as well as unwanted sexual experiences. These experiences not only paradoxically increased their sense of loneliness and their distance from others, but also resulted in a negative impact on their mood and functioning. This qualitative study provided some insights into the OSM use among autistic young adults. OSM could be a useful tool to overcome potential limitations in social interactions, but at the same time it could potentially bring detrimental consequences. In order to maximize the benefits of online social networking, there is a need for timely guidance and support to use OSM among autists, and for psychoeducation to promote awareness, and enable adequate skills and behaviors attainment associated with safe OSM use.