Fraud Cases Research Articles

Abuse of the Social System in the Czech Republic

Abstract The aim of the paper was to identify areas of possible abuse of social security support in the Czech Republic, with a specific focus on the Ústí nad Labem Region and the Litoměřice district, and to estimate the volume of social security support drawn in conflict with the legal regulations of the Czech Republic. In the Ústí nad Labem Region, spending on social security increased by 34.9% in the years 2016–2020. Upon a detailed focus on the Litoměřice district in the monitored period of 2018–2020, there were 69 fraud cases in the Litoměřice district within the scope of the social security system and illness benefit. Over 60% of this fraud and loss was deferred. The biggest shortcoming of the Czech Republic’s social system is the fact that individual institutions have little or no chance of finding out whether applicants are entering truthful information in the forms. A change of legal regulations and mandatory checks on applicants is the path towards reducing the amount of fraud and loss in social security and illness benefit.

Litigating Corporate Human Rights Information

This article analyzes trends in litigation brought against corporate actors regarding human rights information. Such information includes, but is not limited to, statements on packaging claiming that products are “ethically sourced” and investor‐facing disclosures representing that an issuer's operations are environmentally friendly. It proceeds by outlining the sources of human rights‐related disclosures as they arise under both legal and voluntary regimes. The article then addresses the case law. Recent years have seen an increase in lawsuits involving human rights information, or lack thereof, imparted by companies. Consumer protection or consumer fraud cases are being filed, alleging that companies have either provided false and misleading information or omitted information about corporate human rights impacts and mitigation efforts. Investors are filing similar claims. The article examines the trend and considers the role of this litigation both in holding companies to their word and in providing corporate accountability for the underlying human rights abuses that false or misleading human rights information may mask. It ultimately argues that, although success at trial in such cases remains elusive, litigation is a useful and potentially growing tool for holding companies to their word regarding human rights claims. It contextualizes this litigation, arguing that other means by which companies can be held to their word should be strengthened, including public enforcement and—potentially—new disclosure and due diligence laws.

An Analysis of Crypto Scams during the Covid-19 Pandemic: 2020-2022

Blockchain and cryptocurrency adoption has increased significantly since the start of the Covid-19 pandemic. This adoption rate has overtaken the Internet adoption rate in the 90s and early 2000s, but as a result, the instances of crypto scams have also increased. The types of crypto scams reported are typically giveaway scams, rug pulls, phishing scams, impersonation scams, Ponzi schemes as well as pump and dumps. The US Federal Trade Commission (FTC) reported that in May 2021 the number of crypto scams were twelve times higher than in 2020, and the total loss increased by almost 1000%. The FTC also reported that Americans have lost more than $80 million due to cryptocurrency investment scams from October 2019 to October 2020, with victims between the ages of 20 and 39 represented 44% of the reported cases. Social Media has become the go-to place for scammers where attackers hack pre-existing profiles and ask targets’ contacts for payments in cryptocurrency. In 2020, both Joe Biden and Bill Gates’ Twitter accounts were hacked where the hacker posted tweets promising that for all payments sent to a specified address, double the amount will be returned, and this case of fraud was responsible for $100,000 in losses. A similar scheme using Elon Musk’s Twitter account resulted in losses of nearly $2 million. This paper analyses the most significant blockchain and cryptocurrency scams since the start of the Covid-19 pandemic, with the aim of raising awareness and contributing to protection against attacks. Even though the blockchain is a revolutionary technology with numerous benefits, it also poses an international crisis that cannot be ignored.

An investigation of crowdsourcing methods in enhancing the machine learning approach for detecting online recruitment fraud

Misinformation on the web has become a problem of significant impact in an information-driven society. Persistent and large volumes of fake content are being injected, and hence the content (news, articles, jobs, facts) available online is often questionable. This research reviews a range of machine learning algorithms to tackle a specific case of online recruitment fraud (ORF). A model with content features of job posting is tested with five supervised machine learning (ML) algorithms. It then investigates various crowdsourcing techniques that could enhance prediction accuracy and add human insights to machine learning automation. Each crowdsourcing method (explored as human signals online) was tested across the same ML algorithms to test its effectiveness in predicting fake job postings. The testing was conducted by comparing the hybrid models of machine learning and crowdsourced inputs. This study revealed that the best ML algorithm was different in the automated model compared to the hybrid model. Results also indicated that the net promoter type crowdsourced question resulted in the best accuracy in classifying fraudulent and legitimate jobs. The decision tree and generalized linear model demonstrated the highest accuracy among all the tested models.

Cryptocurrency Risks, Fraud Cases, and Financial Performance

In this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance. People debate whether cryptocurrency is an investment opportunity, the new Dutch Tulip Bubble, or a giant Ponzi scheme. There have been a number of high-profile fraud cases associated with cryptocurrencies, such as the FTX scandal in late 2022, thereby making fraud a real concern to current and potential future investors. Regarding financial performance, cryptocurrencies experienced a major collapse in value in the most recent period of the study, about three times worse than the major stock market indices. While in prior periods, cryptocurrencies have significantly outperformed stock market indices, recent fraud cases and the extreme volatility of cryptocurrencies indicate that investing in cryptocurrencies comes with much higher risk than traditional stock market investments. The debate over the investment potential of cryptocurrencies continues, whether they have long term value or are simply the new Dutch Tulip Bubble. The study’s findings will be useful to investors, regulators, and academic researchers regarding the cryptocurrency industry.

Tax Evasion and Benefit Fraud: A Study of the Use of Techniques of Neutralization

ABSTRACT This article examines the techniques of neutralization (ToN) used by tax evaders and benefit fraudsters in the Aotearoa New Zealand justice system. Using data from court sentencing notes, we code our data into ToN to provide insights into the different excuses and justifications that are used by the two different offender categories. We find overall greater use of ToN by tax evaders (in number of use and in number of kinds), along with greater use of ToN that are legislated mitigating factors, such as claims of a good character. Good character was among the least used ToN among benefit fraudsters. We found limited commonality among the ToN used, with benefit fraud cases more likely to reference anti-social factors (e.g. drugs, gambling, violence or alcohol). Tax offenders were more likely to claim the act was anomalous, while benefit fraudsters were more likely to focus on excusing factors, such as physical or mental health. Tax evaders were also more likely to deny injury from their actions, while a higher proportion of benefit fraudsters were actively making reparation for their offending, despite financial necessity being a common ToN for the offending. Overall, the ToN used by tax evaders supports the literature that suggests that tax evaders, as white-collar criminals, are better able to exploit their existing advantage in the justice system than their benefit fraudster counterparts.

Pengaruh Penyalahgunaan Teknologi Informasi dan Pemahaman Ajaran Tamansiswa Tri Pantangan terhadap Perilaku Kecurangan Akademik Mahasiswa Akuntansi

Looking at the current situation, fraudulent behavior commited by accountants and accounting student as prospective accountants still occurs frequently. This study aims to examine the effect of misuse of information technology and understanding of tamansiswa tri pantangan teachings on academic fraud behavior of accounting students as prospectives accountant.. The research method used is quantitative. The sample in this study was obtained from accounting students from the 2019-2021 batch at Sarjanawiyata Tamansiswa University, using the convenience sampling method. The number of samples used were 114 respondents. Data analysis in this study used multiple regression analysis. The results of the study show that misuse of information technology has a positive effect on academic fraud behavior. Meanwhile, understanding of the teachings of tamansiswa tri pantangan have a negative effect on academic cheating behavior. The research is used for consideration for student and universities in responding to cases of academic fraud in order to maintain the quality of academic learning. The results of this study are expected to provide information for universities so that they can evaluate regulations or policies regarding academic cheating. Strictly speaking, regulations can reduce the level of academic fraud so that in the future there will be no more cases of academic fraud in tertiary institutions

IMPLEMENTATION OF WHISTLEBLOWING SYSTEM: GOOD CORPORATE GOVERNANCE, FUNDAMENTAL FACTORS, COMPANY RISK AND INVESTOR REACTION

One of the influencing factors for the implementation of this policy in Indonesia is the emergence of several cases of fraud that occurred in large companies in this country. The urgency of this research is (1). The implementation of the whistleblowing system in Indonesia is still a growing polemic, so many companies have not fully implemented this system. This research is a development of research conducted by Sulhani and Wardani (2017) with the addition of variables. The conclusion in this research is that the variables of the audit committee and internal audit have an effect on the implementation of the whistleblowing system. Meanwhile, the variables of board of commissioners, internal control system, managerial ownership, company risk, company size, and investor reactions have no effect on the implementation of the whistleblowing system. it can be seen that audit process has an influence on the implementation of the whistleblowing system.

Rosenhan revisited: successful scientific fraud.

The publication of David Rosenhan's 'On being sane in insane places' in Science in 1973 played a crucial role in persuading the American Psychiatric Association to revise its diagnostic manual. The third edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM-III) in its turn launched a revolution in American psychiatry whose reverberations continue to this day. Rosenhan's paper continues to be cited hundreds of times a year, and its alleged findings are seen as crucial evidence of psychiatry's failings. Yet based on the findings of an investigative journalist, Susannah Cahalan, and on records she shared with the author, we now know that this research is a spectacularly successful case of scientific fraud.

A non-manufacturer-sponsored, retrospective study to assess 2-year safety outcomes of the BellaGel® SmoothFine as compared with its competitors in the context of the first Korean case of a medical device fraud.

We conducted this study to assess preliminary 2-year safety outcomes of an implant-based augmentation mammaplasty using the BellaGel® SmoothFine in the context of the first Korean case of a medical device fraud. Our clinical series of the patients (n = 579; 1,158 breasts) received augmentation using the BellaGel® SmoothFine, Naturgel™, Motiva Ergonomix™, Eurosilicone Round Collection™, Natrelle® INSPIRA™, Natrelle® 410, Mentor® MemoryGel Xtra or Microthane®. The patients were evaluated for incidences of postoperative complications and Kaplan-Meier survival and hazards. Overall, there were a total of 101 cases (17.4%) of postoperative complications; these include 31 cases (5.4%) of shape deformity, 21 cases (3.6%) of CC, 18 cases (3.1%) of early seroma, 8 cases (1.4%) of infection, 5 cases (0.9%) of early hematoma, 1 case (0.2%) of delayed hematoma, 1 case (0.2%) of rupture and 1 case (0.2%) of ripping. Moreover, there were also 15 cases (2.6%) of other complications. There were significant differences in incidences of postoperative complications between the breast implants from different manufacturers (P = 0.034). The Natrelle® 410 showed the longest survival (333.3±268.2 [141.5-525.1] days). A subgroup analysis showed that there were no significant differences in incidences of postoperative complications between the breast implants (P = 0.831). Moreover, the Natrelle® INSPIRA™ showed the longest survival (223.7±107.1 [-42.3-489.6] days). Here, we describe preliminary 2-year safety outcomes of an implant-based augmentation mammaplasty using the BellaGel® SmoothFine in the context of the first Korean case of a medical device fraud.

The Effectiveness of Corporate Governance and Whistleblowing System on Fraud Disclosure

There are increased corporate mechanisms for detecting fraud cases in financial institutions. This study aimed to investigate the impact of corporate governance and whistleblowing systems (WBS) on fraud disclosure. A multiple regression analysis was performed on 34 public banks listed on the Indonesia Stock Exchange (IDX) from 2016 to 2020. The findings showed that the bank's corporate governance rating significantly and negatively affects the disclosure of fraud. This implies that a better corporate governance rating increases the bank's ability to detect fraud. However, the increased violations reported through WBS mechanism did not indicate fraud following the investigation. Another finding showed that the potential for fraud in government-owned and large banks increases due to political intervention and conflicts of interest in business policymaking. Therefore, this study has practical implications for implementing a WBS in fraud violations in the banking sector.
 Keywords: fraud, corporate governance, whistleblowing system policy

Credit Card Fraud Detection using Big Data Technologies

The use of credit cards is prevalent in modern day society. But it is obvious that the number of credit card fraud cases is constantly increasing in spite of the chip cards worldwide integration and existing protection systems. This is why the problem of fraud detection is very important now. Credit card fraud detection is the most frequently occurring problem in the present world. This is due to the rise in both online transactions and e-commerce platforms. Credit card fraud generally happens when the card was stolen for any of the unauthorized purposes or even when the fraudster uses the credit card information for his use. In the present world, we are facing a lot of credit card problems. To detect the fraudulent activities the credit card fraud detection system was introduced. This project aims to focus mainly on validating various Business Rules to Identify whether the transaction happened is Fraud/Genuine and report the same accordingly.

The Tendency for Occupational Fraud in Malaysian Small Medium Enterprises and The Effect of Internal Control, Ethical Culture and Awareness on Fraud

Occupational fraud requires serious attention due to its detrimental effect towards businesses, nation’s economy, and community well-being. Implications led to businesses losing their revenue while affecting global economy negatively and depriving the society of fair share on nation’s wealth. Malaysia’s businesses have seen cases of occupational fraud among small, medium sized enterprises (SME) representing the significant portion of country’s business population of 95%. Such vulnerability among them were due to deficiency in control system. Hence this study aims to assess the influence of internal control, fraud awareness and ethical culture on tendency of occupational fraud within SMEs in Malaysia. Most past studies have focused on public sector and listed companies while limited study was done on SME with inconsistent results. Questionnaire survey was adopted with SME staffs as respondents from 384 SME out of 907,065 establishments. Data collected was analyzed using multiple regression which revealed significant influence by internal control and fraud awareness factors on tendency of occupational fraud among SME staffs, while ethical culture showed insignificant influence. This study has limitation due to limited number of response rate of 33% and sample may not consist of SME whose staffs had committed occupational fraud. The finding provides further evidence on tendency of occupational fraud among SMEs. It will be useful for organizations, especially SMEs in understanding potential areas requiring further attention to remedy occupational fraud.

Cyber Crime in the Era Industrial 4.0: Analisis OTP Fraud dalam Perspektif Hadis

This research was conducted because still many do not know the form of cases of OTP Fraud. The problem of this research in the cases of OTP Fraud in the view of hadith. Results and discussions this research shows the presence of a certain hadith the ban practicing fraud acts includes otp fraud. This research Concluding that otp fraud constitutes an act of criminality by cheating its target into pretending to be the society's staff in order to convince the target to give out otp codes, it is forbidden in the Qur'an and the hadith and it is recommended for tabayyun when receiving information. The research recommends to the user of technology to be careful and not to give indiscriminate codes that contain confidential personal data to others.

The Practice of Money Politics in Village Head Elections and Its Effect on The Participation Level of Beginner Voters

General election is a form of democratic system implementation. This democratic system is carried out to the lowest level in the government system, namely in the general election of village heads. However, in practice, the village head election process is still not optimal due to various forms of fraud. One of which is the practice of money politics. Money politics aims to influence the voters' votes so that they are influenced to choose a candidate who provides them with assistance in the form of money or goods and services. The case of money politics is getting stronger in the run-up to the election, and the targets of money politics are not only voters who have held elections before but also beginner voters. This study aimed to determine the practice of money politics in the election of village heads and its effect on the level of participation of novice voters. The research method used is descriptive quantitative. Data were collected through questionnaires and interviews. The research used data interpretation assisted with statistical applications, SPSS, to analyze the data. The results showed that the money politics practices that occurred in the election of the Village Head in Gampong Gunong Meulinteung were in the form of money that is 64 people (76%), goods that is 46 people (57%), and services that is 47 people (58%). The correlation test results show a value of 0.276, where the influence of money politics on novice voters in the Gampong Gunong Meulinteung Village Head Election in 2019 is 7.6%. It means that it has little effect on novice voters. The rest, amounting to 92.4% of novice voters, chose the Village Head candidate based on other factors such as age, education, and the candidate’s personality. Therefore, all forms of money politics should be eliminated in the general election so that the implementation of democracy in Indonesia can run well. In addition, it is also necessary to provide political education for novice voters, and it is hoped that the village government will form a task force that acts to eradicate cases of election fraud.

Police Efforts in Revealing Criminal Acts of Online Fraud

Crimes caused by the development and progress of Information Technology and Telecommunications are crimes related to the internet, or in foreign terms it is often called cybercrime. Cybercrime is a crime that takes advantage of technological developments, especially the internet. The internet, which presents cyberspace with its virtual reality, offers various hopes and conveniences, but behind that, problems arise in the form of a crime called cybercrime, both the computer network system itself and the computer itself which is the vehicle for committing crimes. There are a variety of digital scams such as phishing, lottery scams, video scams, identity theft and scareware. This study uses a normative juridical approach. The normative juridical approach is legal research carried out by examining literature or secondary data as the basic material to be examined by conducting a search of regulations and literature related to the problem under study. The efforts of the police in handling fraud cases online are guided by the Criminal Procedure Code (KUHAP) as well as in the Regulation of the Indonesian National Police Number 6 of 2019), namely as "Investigators and Investigators". The step taken by the Police is to trace the accounts used by the perpetrators of crimes, where the last whereabouts or position of the perpetrators of these crimes are.

PENGARUH AUDIT INTERNAL, KOMPETENSI AUDITOR, KESESUAIAN KOMPENSASI DAN WHISTLEBLOWING SYSTEM TERHADAP PENCEGAHAN FRAUD

Fraud or commonly known as fraudulent activities carried out in various modes and continues to increase over time. The high number of fraud cases that occur in Indonesia must be taken very seriously, for example by forming an internal audit team that has a really valuable role in monitoring activities to determine whether programs and fraud prevention have been running effectively. This study plans to decide the impact of internal audit, auditor competence, compensation suitability and whistleblowing system on fraud prevention in the Inspectorate General of the Ministry of Maritime Affairs and Fisheries with a sample of 117 respondents. Data collected through questionnaires, the method used in this study is multiple linear regression. The results show that internal audit, auditor competence, compensation suitability and whistleblowing system have a significant effect on fraud prevention

Analysis of factors affecting fraudulent financial reporting in fraud pentagon perspective

The data from ACFE show that Indonesia, in the 2014-2020 period, had 126 cases of fraud, ranking the country as the second-highest country with the most fraud cases in the Asia Pacific. This phenomenon attracts the author to investigate factors that encourage the emergence of fraudulent financial reporting from the perspective of the Fraud Pentagon theory. Although many studies have been done on this topic, the results of the previous studies have not shown any uniformity or, even, consistency between theory and empirical reality. This study focus on a similar topic, but with a different object and approach. The objects studied in this study are utility, transportation, and infrastructure companies listed on the Indonesia Stock Exchange in the 2015-2019 period; Meanwhile, for the testing technique, this research applies several computational techniques, ranging from the Classical Assumption Test to the hypothesis test using the IBM SPSS 25 analysis tool Data were obtained from 185 samples selected using the purposive judgment sampling method. The data, then, were analyzed using multiple linear regression analysis. The results of this study indicate that not all of the factors studied influence fraudulent financial reporting. Of the seven hypotheses proposed, only the financial target variable has a positive effect on fraudulent reporting. Similarly, the nature of the industry variable also influences fraud, but in the opposite direction (negative). Meanwhile, the other five variables, namely: external pressure, monitoring effectiveness, change in auditors, change in directors, and dual CEO positions do not indicate having significant influences. This study has several limitations, dealing with measurement techniques and the reliance on information attached to the company's financial statements, which might have been manipulated before. These limitations indicate that further research on this topic is needed to obtain better results.

Parvalbumin: A Major Fish Allergen and a Forensically Relevant Marker.

Parvalbumins (PVALBs) are low molecular weight calcium-binding proteins. In addition to their role in many biological processes, PVALBs play an important role in regulating Ca2+ switching in muscles with fast-twitch fibres in addition to their role in many biological processes. The PVALB gene family is divided into two gene types, alpha (α) and beta (β), with the β gene further divided into two gene types, beta1 (β1) and beta2 (β2), carrying traces of whole genome duplication. A large variety of commonly consumed fish species contain PVALB proteins which are known to cause fish allergies. More than 95% of all fish-induced food allergies are caused by PVALB proteins. The authentication of fish species has become increasingly important as the seafood industry continues to grow and the growth brings with it many cases of food fraud. Since the PVALB gene plays an important role in the initiation of allergic reactions, it has been used for decades to develop alternate assays for fish identification. A brief review of the significance of the fish PVALB genes is presented in this article, which covers evolutionary diversity, allergic properties, and potential use as a forensic marker.

A benchmarking approach for characterizing providers’ patterns of treating patients with substance use disorder

It is difficult to identify fraud, waste, and abuse (FWA) in substance use disorder (SUD) treatment. Insurers use outlier detection models to detect SUD-related FWA but these models require credible benchmarks based on cross-payer claims data. To our knowledge, these benchmarks have not been established for SUD-related services frequently cited in fraud cases — drug screening, psychotherapy, and partial hospitalization. We used de-identified and aggregated data from FAIR Health’s national database of commercial claims, including ACA marketplace plans, from 2014 to 2018 to establish regional benchmarks. We provide additional benchmarks for providers in specialties that most frequently submit claims for patients with SUD. These benchmarks can either be used to determine if a provider’s frequency of claims per-patient-per-month is unusual, potentially signaling FWA, or within a common range for the region or specialty. Our findings can be used to improve detection of FWA – a critical step towards improving the quality of treatment.