Fraud Prevention Methods Research Articles

Impact of Whistleblowing System Implementation Level on Company's Operational Efficiency in Indonesia Consumer Goods Sector

Indonesia faces significant issues with fraud across various business sectors, including consumer goods, which negatively impacts operational efficiency. This highlights the need for effective fraud prevention methods to mitigate these effects. This study uses panel data regression analysis, based on annual reports and financial statements from 2019 to 2023, to examine how the implementation level of whistleblowing systems affects operational efficiency, with fraud prevention as a mediating variable, in consumer goods companies listed on the Indonesia Stock Exchange (IDX). The findings indicate that a higher level of whistleblowing system implementation significantly enhances operational efficiency. However, fraud prevention does not mediate this relationship, as the analysis shows insignificant results regarding the impact of whistleblowing systems on fraud prevention and the effect of fraud prevention on operational efficiency. This suggests that while whistleblowing systems directly improve operational efficiency, their role in fraud prevention does not significantly influence this improvement. This research contributes to the literature by demonstrating the direct positive impact of whistleblowing systems on operational efficiency in the Indonesian consumer goods sector. It also offers practical recommendations for companies to enhance their whistleblowing systems to boost operational efficiency. Additionally, the study calls for future research to explore alternative mechanisms through which whistleblowing systems impact operational efficiency beyond fraud prevention and to investigate other methods for assessing whistleblowing system implementation and fraud incidence to reduce bias.

Fraud Prevention Strategies and Financial Stability of Insurance Companies in Kenya

Insurance companies play a crucial role in reducing risks and uncertainties, making them a vital part of the economy. However, they are vulnerable to various types of fraudulent activities, such as false claims, premium misuse, and financial record manipulation. While efforts have been made to address these challenges, more investigation is needed to determine the effectiveness of fraud prevention methods in maintaining financial stability. This research project aims to bridge this gap by exploring the empirical connections between internal control frameworks, transaction monitoring processes, financial audit procedures, and the overall financial stability of insurance companies in the Kenyan market. The goal is to understand how these techniques can deter fraud, promote regulatory compliance, and strengthen the organizational structures in the industry. Additionally, the study examines established theories like agency theory, risk management theory, institutional theory, and game theory to clarify the theoretical basis supporting these tactics and their impact on the financial stability and longevity of insurance companies. The conclusion of the study offers valuable insights regarding the correlation between fraud prevention measures and financial stability within the insurance sector.

The Effect of Public Sector Accounting Implementation to Prevent Fraud in the Public Sector in the Digital Era at PT. PLN UP3 Binjai

This study supposed to determine the effect of the application of public sector accounting to prevent fraud in the public sector in the digital era at Pt. Pln Up3 Binjai The method used by the author in this research is This research uses qualitative descriptive research methods. This qualitative descriptive research is to determine the role of public sector accounting to prevent fraud in the public sector in the digital era at PT. PLN Up3 Binjai. This descriptive study aims to provide researchers with a history or to describe aspects relevant to the phenomenon of attention from the perspective of an organization. The type of data the author uses in this research is qualitative data. This qualitative data is obtained from direct interviews with the Internal Supervisory Unit (SPI) regarding the Role of the Internal Supervisory Unit in fraud prevention at PT PLN UP3 Binjai. The results of the conclusions in this study are the first characteristics of fraud in the public sector that occur in the digital era, including the use of misconceptions about the role of digital technology in carrying out the duties of public accountants, utilizing digital technology to optimize opportunities for fraud, taking advantage of problems in human error and lack of knowledge in the use of digital technology, using digital technology products. Furthermore, the application of Public Sector Accounting can prevent fraud in the public sector in the digital era if implemented by considering factors that affect fraud, such as performance accountability, and accompanied by the application of fraud prevention methods which include technical strategies, two paradigm approaches, and preventive strategies.

Literature Review: Whistleblowing System Activist Simultancy, Big Data Analytics on Fraud Prevention

The issue of fraudulent practices in Indonesia has become one of the main problems of this nation because of the increasing prevalence of violations. This informs that fraud has really become an acute and systemic problem that is very dangerous and detrimental to the State and society, especially in small and developing countries such as Indonesia. (Dimant, E., & Tosato, G., 2018). The development of the turbulence of human activity gives rise to criminal behavior such as fraudulent acts, one of which is in the form of financial crimes that are undergoing transformation (Rezaee, 2018; Indriani & Terzaghi, 2017; Septriyani & Handayani, 2018; Rusmana & Tanjung, 2019).Several reports from various institutions and world organizations provide an overview of the shifts that have occurred during the pandemic(Huang, Y., 2018). This action is due to the fact that each actor is required to submit accurate and relevant financial information. The purpose of this study is to explore early detection and fraud prevention methods in a conceptual framework that combines elements of a whistleblowing system and big data analytics. In conclusion, there is a gap in the concept of a whistleblowing system and big data analytics in current practice to prevent it, as well as the auditor's perspective in making a proactive anti-fraud model. To explore this, it is necessary to synthesize information through a literature review from various information obtained in terms of generalizing information related to the problems that are the center topic in this study.

Analysis of Global System for Mobile Communication (GSM) Subscription Fraud Detection System

This work is concerned with GSM subscription fraud detection system using some network techniques. Fraud is a hitch around the globe with huge loss of income. Fraud has an effect on the credibility and performance of telecommunication companies. The most difficult problem that faces the industry is the fact that fraud is dynamic, which means that whenever fraudsters feel that they will be detected, they devise other ways to circumvent security measures. In such cases, the perpetrators’ intention is to completely avoid or at least reduce the charges for using the services. Subscription fraud is one of the major types of telecommunication fraud in which a customer obtains an account without intention to pay the bill. Thus at the level of a phone number, all transactions from the number will be fraudulent. In such cases abnormal usage occurs throughout the active period of the account; which is usually used for call selling or intensive self usage. This provides a means for illegal high profit business for fraudsters requiring minimal investment and relatively low risk of getting caught. A system to prevent subscription fraud in GSM telecommunications with high impact on long distance carriers is proposed to detect fraud. The system employs adaptive flexible techniques using advanced data analysis like Artificial Neural Networks (ANN). This study aims at developing a fraud detection model occurrence in GSM Network. The paper also gives analysis of the fraud detection Systems, fraud detection and prevention, fraud prevention methods etc. Fraud affects us all and is of particular concern to those who manage large government and business organisations where the potential losses are greatest. The operation of a mobile network is complex, and fraudsters invest a lot of energy to find and exploit every weakness of the system. A typical example would be subscription fraud, where a fraudster acquires a subscription to the mobile network under a false identity; and start reselling the use of his phone to unscrupulous customers (typically for international calls to distant foreign countries) at rate less than the regular tariff.

MODEL PENERAPAN AKUNTANSI SEKTOR PUBLIK UNTUK MENCEGAH FRAUD PADA SEKTOR PUBLIK DI ERA DIGITAL

This study aims to find and describe the characteristics of fraud that occur in the public sector in the digital era and develop models of application of Public Sector Accounting to prevent fraud that occurs in the public sector in the digital age. The research carried out is a literature review study sourced from articles in accordance with the research topic for further analysis. The results showed that the characteristics of fraud in the public sector that occurred in the digital era include the use of misconceptions regarding the role of digital technology in the implementation of public accounting tasks, the utilization of digital technology to optimize opportunities for fraud, exploiting problems in human error and lack of knowledge in the use of technology. digital, using digital technology products, to carry out fraud. Application of Public Sector Accounting can prevent fraud in the public sector in the digital era if implemented by considering several factors that influence fraud, such as performance accountability, and accompanied by the application of fraud prevention methods which include technical strategies, two paradigm approaches, and preventive strategies.

Auditing Techniques to Avoid Cost Accounting Frauds

Today, we observe the importance of accuracy of financial statements in every corporation. Accounting scandals have caused important losses both in the macro and micro levels. This issue proves the significance of financial statement accuracy. This accuracy is provided by the trust environment. Therefore, it is necessary to provide the required environment of confidence for financial markets to improve and function effectively against increasing accounting frauds gradually. That can only be possible by using different auditing techniques, running inventory counting such as cash and stock, establishing strong internal controls, managing efficiently and benefiting from technology integrated auditing. The aim of this study is to investigate the most effective auditing techniques to avoid cost accounting frauds. In this research, the most effective auditing techniques for detecting and preventing fraud are investigated by using the case analysis method. Also, the well known scandals related with Olympus, Worldcom, Tesco, Sunbeam and Parmalat companies are examined as a part of the case analysis. Finally, recommendations and suggestions regarding fraud prevention methods are presented.

The Comprehensive Model of Whistle-Blowing, Forensic Audit, Audit Investigation, and Fraud Detection

Fraud is a problem that has never been resolved from year to year. One type of fraud that often occurs in the government sector is corruption. Various attempts have been made by the government to detect fraud, but the efforts that have been made have not been effective in reducing fraud. This study aims to propose a conceptual model for detecting fraud by linking whistle-blowing, forensic audits, and investigation audits. The conceptual model of this research is expected to provide input to managers and decision makers regarding the factors that need to be considered in improving fraud detection so that in the future fraud prevention methods will be better and better.

The UK fraud landscape for financial services

Fraud in the financial services industry is a topic that constantly makes headlines, but is the situation really as dire as the media would have us believe? Well, according to the recent statistics from the National Fraud Authority (NFA), released 27 January 2011, fraud is costing the UK over £38bn a year. In particular, the financial services industry recorded the highest loss to fraudsters at £3.6bn. However, on a more positive note this actually represented a slight decrease on the 2010 Annual Fraud Indicator figure of £3.8bn due to improved fraud prevention methods involving plastic card fraud (£440m) and cheque fraud (£30m).

Carrefour of Fraud in Europe

The increasing liberalisation of all forms of trade, including the financial services sector, is encouraging the internationalisation of the European insurance industry, making it more vulnerable to fraud. This paper discusses the current problem with fraud in the sector, and considers the implications of moving into new markets. It then looks at future fraud prevention methods such as screening of applicants and stresses that there is an urgent need for the situation to be reviewed.