Fraud Cases Research Articles

A Study on Accounting and Auditing

The purpose of the study is to explore the importance of accounting and auditing. In past couple of decades, the count of fraud cases is increased, and it brings a lot of questions in the minds of stakeholders. In order to destroy the problems of corporate governance all companies must inculcate practice of accounting and auditing. Few things are very essential when we inculcate practice of accounting and auditing are explained in this research study. As accounting frauds are to be reduced to do so, auditors must have freedom. In order to increase the authenticity of transaction the auditors must have responsibility also. Finally, our research puts light on the impact of internal auditing and importance of accounting and auditing and how auditors’ responsibility and freedom is important to improve corporate governance and investors protection.”

Optimizing Neural Networks for Imbalanced Data

Imbalanced datasets pose pervasive challenges in numerous machine learning (ML) applications, notably in areas such as fraud detection, where fraudulent cases are vastly outnumbered by legitimate transactions. Conventional ML methods often grapple with such imbalances, resulting in models with suboptimal performance concerning the minority class. This study undertakes a thorough examination of strategies for optimizing supervised learning algorithms when confronted with imbalanced datasets, emphasizing resampling techniques. Initially, we explore multiple methodologies, encompassing Gaussian Naive Bayes, linear and quadratic discriminant analysis, K-nearest neighbors (K-NN), support vector machines (SVMs), decision trees, and multi-layer perceptron (MLP). We apply these on a four-class spiral dataset, a notoriously demanding non-linear classification problem, to gauge their effectiveness. Subsequently, we leverage the garnered insights for a real-world credit card fraud detection task on a public dataset, where we achieve a compelling accuracy of 99.937%. In this context, we compare and contrast the performances of undersampling, oversampling, and the synthetic minority oversampling technique (SMOTE). Our findings highlight the potency of resampling strategies in augmenting model performance on the minority class; in particular, oversampling techniques achieve the best performance, resulting in an accuracy of 99.928% with a significantly low number of false negatives (21/227,451).

Fraud Triangle as an Audit Tool

The objective of this study is to assess the usefulness of the fraud triangle in fraud detection and to make use of the results to critically examine the Indian Standard on Auditing that describes the responsibilities of auditors related to frauds (SA 240). Based on content analysis and quantitative assessment of publicly documented evidence in the form of press articles covering 19 emblematic Indian cases of fraud that went public between 1992 and 2018, this study establishes the validity of the fraud triangle and recommends that auditors evaluate potential frauds based on the components of the fraud triangle. The study also identifies fraud risk factors not covered in SA 240 and suggests that these risk factors be added to SA 240 to aid the fraud detection efforts of auditors. Further, the behavioural nature of the fraud risk factors missing from SA 240 suggests that the behaviour of prospective fraud perpetrators has not received due consideration in SA 240. The value of this study lies in its ability to demonstrate the usefulness of the fraud triangle as an audit tool and underscore the room for improvement in the Indian auditing standard related to frauds (SA 240).

PERANCANGAN SISTEM INFORMASI PERJALANAN WISATA ALAM DAN KOMUNITAS BERBASIS WEBSITE

Indonesia is a country that has a tourist attraction and is a tourist destination. Open trips are a trending vacation style, open trips are often also called combined trips. Community natural tourism or community-based nature tourism is a group or association of people who travel. The number of open trip fraud cases makes us have to be careful in looking for open trip events. The application of an open trip event information system and a website-based natural tourism community is an effort to promote trusted open trip events to tourists. This website provides information about open trip events and also community-based nature tourism in Indonesia and educational articles when traveling on open trips. All of this is provided so that the names of tourist destinations are more widely known and encourage interest in domestic tourism. This application provides information on domestic community-based natural and natural tourism trips and payments that are still manual. In developing this website using HTML, CSS, Laravel framework, Bootstrap, and for the database using MySQL.

Another fraud case highlights benefits of routine, independent audits

Yet another case of fraud in the nonprofit sector has made headlines recently, this time in Florida, highlighting the importance of regularly scheduled third‐party audits in detecting and deterring financial misfeasance.

Czech Republic: Political Developments and Data in 2022

AbstractThe war in Ukraine dominated Czech politics in 2022. The Cabinet of Petr Fiala militarily and politically supported the Ukrainian defence efforts against the Russian adversary. Fiala visited Ukraine twice in 2022 (being the first Western leader, along with the Slovenian and Polish prime ministers, to meet with Zelensky in Kyiv on 15 March). Senate and local elections occurred in the autumn. Fiala's party (Civic Democratic Party, ODS) had the strongest showing in the Senate election, while the ANO party of the previous Prime Minister Andrej Babiš suffered a defeat. Babiš was acquitted in a long‐lasting subsidy fraud case and began campaigning for the January 2023 presidential election. Domestically, the double‐digit inflation, increasing public debt and energy supply routes were the crucial issues that led to several big anti‐government protests. The Czech Republic presided over the Council of the European Union in the second half of 2022.

Analysis of financial fraud cases based on Fraud Triangle Theory

In recent years, the frequent occurrence of financial fraud in listed companies has caused a huge impact on enterprises and investors.In this paper, Beijing Blue Mountain Technology Co., LTD. (hereinafter referred to as "Blue Mountain Technology") as an example, through the fraud triangle theory, from the pressure, opportunity, excuse three aspects of in-depth analysis of the financial fraud of Blue Mountain Technology motivation, and put forward targeted preventive measures.

The Influence of Moral Reasoning, Collectivism, And Retaliation Against the Intention of Whistleblowing (A Case Study on Bank Nagari)

Nowadays, the term whistleblowing has often been discussed in the wider community, it is because of the many acts of fraud that have been revealed both in companies and agencies. One of the fraud cases that often occurs is in the banking sector. This study aims to determine and analyze the influence of moral reasoning, collectivism, and retaliation on the intention of whistleblowing at PT Bank Nagari Padang Main Branch. The research method used is a quantitative approach. The population in this study is employees of PT Bank Nagari Main Branch of Padang. The sampling technique was carried out by purposive sampling method with a total of 135 respondents. The data collection in this study was using questionnaires distributed to employees of PT Bank Nagari Padang Main Branch. Data is processed using SPSS v.25 application. The results showed that moral reasoning had no effect on the intention to whistleblow, collectivism had a positive effect on the intention to whistleblow, and retaliation had a negative effect on the intention to whistleblow.

Ferret: Reviewing Tabular Datasets for Manipulation

AbstractHow do we ensure the veracity of science? The act of manipulating or fabricating scientific data has led to many high‐profile fraud cases and retractions. Detecting manipulated data, however, is a challenging and time‐consuming endeavor. Automated detection methods are limited due to the diversity of data types and manipulation techniques. Furthermore, patterns automatically flagged as suspicious can have reasonable explanations. Instead, we propose a nuanced approach where experts analyze tabular datasets, e.g., as part of the peer‐review process, using a guided, interactive visualization approach. In this paper, we present an analysis of how manipulated datasets are created and the artifacts these techniques generate. Based on these findings, we propose a suite of visualization methods to surface potential irregularities. We have implemented these methods in Ferret, a visualization tool for data forensics work. Ferret makes potential data issues salient and provides guidance on spotting signs of tampering and differentiating them from truthful data.

Impact Analysis of PT Fraud Cases. The Three Pillars of Sejahtera Food.Tbk and Efforts by Capital Market Regulators to Compensate Capital Market Investors' Losses

Financial statements are important information needed by investors, creditors, analysts and certain parties which are used as a basis for investing in an asset. However, fraud is often found in financial reports. PT. Tiga Pilar Sejahtera Food Tbk is an example in cases of financial report manipulation practices. The method used in this research is descriptive, in which this research uses a type of research that produces descriptive data or results in the form of written or spoken words from the object of observation. The results of this study concluded that PT. Tiga Pilar Sejahtera Food Tbk has resulted in losses to investors and the OJK as a regulator has imposed administrative sanctions, suspended assets and revoked business licenses

Fraud in the modern legislation of some foreign countries

Over the past decade, the science of criminal law has become interested in comparative legal studies. A significant change in the conditions of social life and the desire to adhere to the principles accepted by the peoples of developed countries requires the study of foreign experience, and sometimes borrowings from international law.
 Comparative research makes it possible to identify and take into account other people's mistakes and achievements when solving questions about criminality and the punishment of specific acts, helps to understand the role and significance of criminal law as a tool of social regulation.
 Recently, comparative legal studies of norms on property criminal offenses have appeared in science, but they pay unjustifiably little attention to the study of fraud. In this article, without pretending to be an exhaustive analysis, we will pay attention to the most significant differences in the criminal law regulation of liability for fraud in the legislation of some foreign countries.
 No society can exist without property, which, being the economic basis, largely determines political, moral, legal and other relations. According to the modern idea of the system of social values, the right to property is regarded as the greatest of the social benefits of an individual. Therefore, encroachments on this good are, in a sense, encroachments on personality.
 Fraud occupies a special place among criminal offenses against property. Despite the fact that in quantitative terms, fraudulent offenses are inferior to theft and robbery, in terms of the growth rate of the number of registered cases of fraud, this type of criminal offense is significantly ahead of other offenses against property.
 A feature of foreign legislation is the presence, along with the general norm on liability for fraud, of an extensive system of special orders on liability for fraud on financial markets, in the field of insurance, lending, circulation of real objects, goods and services.

DNA barcoding and phylogenetics of Wallago attu using mitochondrial COI gene from the River Indus

ObjectivesDNA barcoding technique for fish identification is an effective, rapid, and precise method as compared to the morphological method. Cytochrome c oxidase subunit 1 gene-based DNA barcoding is frequently used in species identification and biodiversity studies. The current study was designed to identify the fishes with the help of DNA barcoding method resulting COI gene sequences, which were used in the construction of genetic diversity and evolutionary history of Wallago attu inhabiting different sites of the River Indus. MethodsThe short mDNA gene sequence of 650 base pairs (COI) was amplified, sequenced, and analyzed by using different bioinformatics tools. The Pairwise distance and phylogenetic analysis by Maximum Likelihood (ML) tree based on Kimura 2 Parameter method was constructed by using MEGA 11 software. ResultsPairwise genetic distance among species showed less divergence between a minimum of 0.000% and a maximum of 0.038%. The Percentage base composition of sequenced samples was calculated and overall AT content (53.7%) was found higher in all sequences as compared to GC content (46.2%). The Phylogenetic tree revealed that species clustered differently under diverse nodes. It revealed that fish species clustered together because they were in the same order and family. QR code in this study was first time developed to guide misleading and fraud cases. ConclusionsThese results showed that fish species share identical genera but with diverse genetic variations due to diverse habitats involving a common ancestor. The COI barcodes generated in the current study will help in species identification.

Determinants of auditor's ability to detect fraud with professional skepticism as moderation at the inspectorate general of the ministry of public works and public housing

The high number of fraud cases in Indonesia has caused huge losses. When fraud cases are disclosed by external parties, what often becomes the public spotlight is the failure of the internal auditor's role in detecting fraud. This study aims to examine the factors that influence the auditor's ability to detect fraud. The data used in this study is primary data sourced from the auditors of the Inspectorate General of the Ministry of Public Works and Public Housing (MPWH) with a total sample of 117 respondents. Data was obtained through a closed questionnaire. The sampling technique is random sampling. The analysis technique in this study is to use Moderated Regression Analysis (MRA), including the t-test and R2 test. The results of the analysis show that competence, independence, and whistleblowing have a positive and significant effect on the auditor's ability to detect fraud. The moderating effect of professional skepticism can strengthen the effect of competence and independence on the auditor's ability to detect fraud. On the other hand, professional skepticism does not moderate the effect of whistleblowing on the auditor's ability to detect fraud.

The Pandora's box of transparency opened by direct-to-consumer genetic testing.

With the increasing use of direct-to-consumer (DTC) genetic testing, several cases of fertility fraud have been uncovered throughout the world. A review of newspaper articles and specialized literature was made to analyze the issue of fertility fraud. The most famous cases, some of which are narrated in this article, became a scandal because they were committed by the doctors who treated the patients in question as a routine procedure in their medical practice. Some have been widely exposed in documentaries on streaming platforms, thereby raising awareness about a grave problem. The discussion focuses on the ambiguous regulation on the anonymity of donors, which has been one of the elements of the deception committed against the families using these services. Anonymity nowadays collides with the fascinating Pandora's box of transparency in genetic information that has been opened by DTC genetic testing.

Tracing the Volatilomic Fingerprint of the Most Popular Italian Fortified Wines.

The aim of the current study was to provide a useful platform to identify characteristic molecular markers related to the authenticity of Italian fortified wines. For this purpose, the volatilomic fingerprint of the most popular Italian fortified wines was established using headspace solid-phase microextraction combined with gas chromatography-mass spectrometry (HS-SPME/GC-MS). Several volatile organic compounds (VOCs), belonging with distinct chemical groups, were identified, ten of which are common to all the analyzed fortified Italian wines. Terpenoids were the most abundant chemical group in Campari bitter wines due to limonene's high contribution to the total volatilomic fingerprint, whereas for Marsala wines, alcohols and esters were the most predominant chemical groups. The fortified Italian wines VOCs network demonstrated that the furanic compounds 2-furfural, ethyl furoate, and 5-methyl-2-furfural, constitute potential molecular markers of Marsala wines, while the terpenoids nerol, α-terpeniol, limonene, and menthone isomers, are characteristic of Vermouth wines. In addition, butanediol was detected only in Barolo wines, and β-phellandrene and β-myrcene only in Campari wines. The obtained data reveal an adequate tool to establish the authenticity and genuineness of Italian fortified wines, and at the same time constitute a valuable contribution to identify potential cases of fraud or adulteration to which they are subject, due to the high commercial value associated with these wines. In addition, they contribute to the deepening of scientific knowledge that supports its valorization and guarantee of quality and safety for consumers.

Detecting insurance fraud using supervised and unsupervised machine learning

AbstractFraud is a significant issue for insurance companies, generating much interest in machine learning solutions. Although supervised learning for insurance fraud detection has long been a research focus, unsupervised learning has rarely been studied in this context, and there remains insufficient evidence to guide the choice between these branches of machine learning for insurance fraud detection. Accordingly, this study evaluates supervised and unsupervised learning using proprietary insurance claim data. Furthermore, we conduct a field experiment in cooperation with an insurance company to investigate the performance of each approach in terms of identifying new fraudulent claims. We derive several important findings. Unsupervised learning, especially isolation forests, can successfully detect insurance fraud. Supervised learning also performs strongly, despite few labeled fraud cases. Interestingly, unsupervised and supervised learning detect new fraudulent claims based on different input information. Therefore, for implementation, we suggest understanding supervised and unsupervised methods as complements rather than substitutes.

A Review Analysis of Earnings Management Report Disclosure

Occupational fraud costs the average firm 5% of its annual income. This equates to a $3.7 trillion yearly loss due to fraud worldwide. The bulk of reported losses (51.9%) were less than $200,000. Financial statement fraud is the most expensive type of occupational fraud, with an average loss of $1,000,000. The most popular methods of detecting fraud are tips (42.2%), management reviews (16.0%), and internal audits (14.1%). Surprisingly, external audits (done by CPA firms) account for just about 3.0% of fraud detection. The majority of cases of fraud identified through tips come from workers (49.0%), followed by consumers (21.6%). Financial reports have been used to anticipate stock return, and firms with top management counsel (TMC) are less likely to see their stock price fall. Therefore, this paper offers a review of the research on earnings management conducted in earlier studies. The problem arising from earnings management will be covered under dilemma in earnings management disclosure studies. Next, evidence of earning management activities is discussing on the previous studied of earnings management. This study also investigates the approaches employed by early researchers to address this problem. The finding discovered by the researcher will be covered under the discussion on earnings management disclosure. Researchers can use this review paper as a reference for researching earnings management in annual reports

Analisis Yuridis Terhadap Tindak Pidana Penipuan Dalam Transaksi Elektronik Melalui Media Sosial (Twitter)

The widespread use of social media among the public has created a new need, namely the urgency to create space for conducting business activities, causing the platform to turn into a place for communication, interaction, as well as a trading space. These changes bring various impacts, one of which is the formation of new types of crime in cyberspace. Fraud in electronic transactions via social media (Twitter) is a crime that targets the internet, computers and related technology as its target. Based on the position of the case, the fraud that occurs can be classified as a crime of computer-related fraud or a crime to gain personal gain and/or harm others. The handling of fraud cases can be carried out using the legal basis contained in Law Number 19 of 2016 concerning Information and Electronic Transactions, namely Article 28 paragraph (1) in conjunction with Article 45 paragraph (2). The use of these two articles is based on the principle of lex specialist derogat legi generali. In addition, if examined using a victimological point of view, victims of fraud cases that occur are included in the category of participating victims where the tendency of victims to be unaware of their attitudes/behaviors in certain circumstances is a reason for someone to act. commit crimes against them. The research method used to answer these problems is normative legal research with a case study approach in the form of legal behavior products.
 

FORENSIC ACCOUNTING IN INDIA: AN EXPLORATION OF EDUCATION, PRACTICE, AND CAREER OPPORTUNITIES

Forensic accounting gained popularity in India following the Enron, Rajat Gupta, and Satyam cases. Few chartered accounting firms specialize in fraud investigation as a practice area. The big four consulting firms Deloitte, KPMG, PricewaterhouseCoopers, and Ernst & Young control a large portion of this industry. Forensic accounting should be included in the curriculum at undergraduate and postgraduate levels across the country. This will help corporations and governments keep a lid on crime at the outset, writes Shashank Joshi. Forensic accounting is an area where forensic accountant examines financial information to detect and investigate financial fraud. ICAI has incorporated a Certified Course on Forensic Accounting and Fraud Detection for practicing CAs. 40% of the top American accounting firms are expanding their offerings to include fraud and forensics. Many accountants in India lack the expertise and knowledge required to conduct forensic accounting or fraud detection effectively. This course is crucial in India because it ensures that accountants can provide reliable testimony in court and during criminal investigations. Through this course, accountants in India can learn how to apply their accounting, auditing, and investigation skills to spot financial irregularities and gain a thorough understanding of the idea of forensic accounting. CFAPs are qualified individuals with the knowledge to look into cases of fraud, money laundering, and other financial crimes. The primary goal of CFAPs is to close the communication gap between financial data and legal proceedings. They do this by utilizing the most recent tools and technologies. A forensic accounting course may be included as a separate subject in the university curriculum.

Deception Technique Using Remote Access Application

Cyber frauds increased during the lockdown period. Remote Apps like Anydesk, TeamViewer are used by fraudsters for executing malicious activity and the victim never knows what has happened. This article brings about an awareness about various tactics used by fraudsters resorting to Remote app technique. Different real time fraud cases are explored to understand the Remote App attack methodology. Customer fraud awareness index is also analyzed to check their responses towards attack simulating techniques. The purpose of the study is to educate people about Remote Access app technique and the preventive measures to avoid financial loss.