Fraud Risk Research Articles

Enhancing voice biometric security: Evaluating neural network and human capabilities in detecting cloned voices

This study assesses speaker verification efficacy in detecting cloned voices, particularly in safety-critical applications such as healthcare documentation and banking biometrics. It compares deeply trained neural networks like the Deep Speaker with human listeners in recognizing these cloned voices, underlining the severe implications of voice cloning in these sectors. Cloned voices in healthcare could endanger patient safety by altering medical records, causing inaccurate diagnoses and treatments. In banking, they threaten biometric security, increasing the risk of financial fraud and identity theft. The research reveals the neural network's superiority over human detection in pinpointing cloned voices, underscoring the urgent need for sophisticated AI-based security. The study stresses the importance of developing robust defenses against voice cloning attacks, which can have critical consequences in healthcare and fintech. This research is crucial for enhancing security in areas reliant on voice authentication, safeguarding confidential data, and preserving the integrity of vital services. The Polish National Center for Research and Development (NCBR) initially supported the project “BIOPUAP” (POIR.01.01.01-0092/19), which focused on digital banking. Subsequently, the project “ADMEDVOICE” (INFOSTRATEG4/0003/2022), also supported by the NCBR, conducted further research into voice cloning in the healthcare sector.

Blockchain in global supply chains: A comparative review of USA and African practices

In the contemporary landscape of international trade, the adoption of blockchain technology in global supply chains has garnered significant attention. This comparative review delves into the practices of the United States and African countries, examining the implementation, challenges, and potential benefits of blockchain in enhancing supply chain efficiency. The United States, as a global economic powerhouse, has been at the forefront of integrating blockchain into its supply chain processes. The American approach emphasizes transparency, traceability, and accountability. Blockchain technology provides a decentralized and immutable ledger, enabling seamless tracking of goods from their origin to the end consumer. The use of smart contracts automates and streamlines contractual agreements, reducing paperwork and minimizing delays. While the adoption in the USA is relatively widespread, challenges include the need for standardized protocols, regulatory frameworks, and overcoming resistance to change within established systems. In contrast, the African continent presents a diverse and evolving landscape in the adoption of blockchain within supply chains. Several African nations have recognized the potential of blockchain to address longstanding issues such as counterfeit goods, fraud, and inefficiencies in logistics. Blockchain offers a decentralized solution that can empower local producers and facilitate international trade. However, challenges in Africa include limited technological infrastructure, varying levels of regulatory frameworks, and the need for capacity building. Collaborative efforts between governments, private sectors, and international organizations are essential to overcoming these obstacles. Both the USA and African countries stand to benefit from blockchain adoption in global supply chains. Increased transparency reduces the risk of fraud and enhances trust between stakeholders. The immutable nature of blockchain records ensures data integrity, contributing to the overall resilience of the supply chain. However, successful implementation requires a nuanced understanding of local contexts, regulatory frameworks, and technological capacities. This comparative review serves as a foundation for future research and policy development, shedding light on the dynamic landscape of blockchain adoption in global supply chains across diverse socio-economic environments.

Analysis of fraud hexagon theory in detecting fraudulent financial statements: The role of Big 4

<p>This study aims to analyze the application of the Fraud Hexagon Theory in detecting fraud in financial statements by considering the role of the Big 4 Public Accounting Firm. This study focuses on research on financial sector companies and banks in Indonesia. The background of this problem begins with the frequent occurrence of financial statement fraud cases, which in turn can harm shareholders and reduce public confidence in the integrity of financial statements. This trend raises the most important question regarding the effectiveness of the Big 4 (<em>Kantor Akuntan Publik-KAP</em>) audits. The research method used is quantitative research, using a secondary data analysis approach based on the company's financial statements. The research sample was selected based on the purposive sampling technique, and the data analysis testing tool used panel data regression analysis with E-Views application to test the hypothesis using various tests needed to form a good regression model. The results of this study indicate that the average fraud on financial statements in the sample taken is relatively low. The findings show that rationalization, ability, and collusion can be used to detect financial statement fraud, while KAP Big 4 can moderate the fraud risk. This study provides new insights into the dynamics of financial statement fraud in Indonesia, especially in the financial and banking sectors, and suggests the need for tighter supervision and improved audit quality to reduce the potential for financial statement fraud.</p>

Improving the Competence of MSME Customers through Mentoring: Holding BRI and PT Permadani Nasional Mandiri

Fraudulence is an unethical act that can occur within both commercial and noncommercial contexts. This type of behavior involves intentional deception and can have serious negative consequences for individuals and organizations alike. This study aims to identify a fraud triangle to mitigate fraud risks in the public sector. The objects in this study are pressure, opportunity, rationalization, and fraud risk. The subject area is the public sector. The population is the villages in the Tasikmalaya Region. The method of sampling involves the use of probability sampling with a cluster sampling approach. The villages included in this study are located in the Cibalong sub-district: Cisempur, Setiawaras, Eureunpalay, Cibalong, Singajaya, and Parung— research methodology using a quantitative and survey approach. The data analysis used multiple regression analysis. The findings of this research are that pressure and opportunity have no significant effect but rationalization has a significant positive effect on risk fraud. The sustainability of the village can be ensured by promoting ethical behavior among village officials and enforcing punishment for fraud. Therefore, the central government must take action on this matter

Impact of Blockchain Technology on Supply Chain Management Efficiency and Transparency in Pakistan


 Abstract
 Purpose: The aim of the study was to influence the impact of blockchain technology on supply chain management efficiency and transparency
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: A study on the impact of blockchain technology on supply chain management in Pakistan revealed significant improvements in efficiency and transparency. Through blockchain integration, supply chain processes experienced reduced delays and increased automation, leading to streamlined operations. Transparency was notably enhanced, with real-time tracking of goods and secure data sharing among stakeholders, mitigating risks of fraud and error. These findings suggest that adopting blockchain technology holds promise for enhancing supply chain management in Pakistan by fostering greater efficiency and transparency.
 Unique Contribution to Theory, Practice and Policy: Diffusion of innovations theory, information processing theory & resource dependency theory may be used to anchor future studies on the impact of block chain technology on supply chain management efficiency and transparency. Encourage supply chain stakeholders to adopt blockchain solutions for enhanced transparency, traceability, and efficiency. Advocate for regulatory frameworks that promote the adoption of blockchain technology in supply chains while addressing concerns related to data privacy, interoperability, and standardization.

Analisis pengendalian internal aktiva tetap sebagai tindak pencegahan penyimpangan pada PT Manado Teknik Mandiri

Internal control is a system designed to provide protection and security for various elements within the company so that with effective internal control, the risk of fraud can be prevented. With good internal control, companies can identify and address risks, including fraud risks, before they occur and reduce their impact. The purpose of this study is to find out how the implementation of internal control and to find out whether the internal control applied is effective in preventing irregularities, especially misuse of fixed assets at PT Manado Teknik Mandiri. The type of research used is descriptive qualitative. The results of research obtained at PT Manado Teknik Mandiri show that the implementation of internal control of fixed assets based on the COSO framework has not been fully implemented. And the internal controls carried out by the company have been effective in preventing irregularities. However, not all components have effectively contributed.

The potential for blockchain to improve small-scale agri-food business’ supply chain resilience: a systematic review

PurposeWe conducted a systematic review to explore the potential for the application of blockchain technologies for supply chain resilience in a small-scale agri-food business context.Design/methodology/approachAs part of the research methodology, scientific databases such as Web of Science, Google Scholar and Scopus were used to find relevant articles for this review.FindingsThe systematic review of articles (n = 57) found that the use of blockchain technology in the small-scale agri-food business sector can reduce the risk of food fraud by assuring the provenance of food products.Research limitations/implicationsOnly a few papers were directly from a small-scale agribusiness context. Key challenges that limit the implementation of blockchain and other distributed ledger technologies include concerns over the disclosure of proprietary information and trade secrets, incomplete or inaccurate information, economic and technical difficulties, low levels of trust in the technology, risk of human error and poor governance of process-related issues.Originality/valueThe application of blockchain technology ensures that the risks and costs associated with non-compliance, product recalls and product loss are reduced. Improved communication and information sharing can increase resilience and better support provenance claims and traceability. Better customer relationships can be built, increasing supply chain efficiency and resilience.

Peningkatan Literasi Keuangan: Pendidikan Perencanaan Keuangan Personal di Kalangan Komunitas Guru SMK “Musyawarah Guru Mata Pelajaran (MGMP)” Kabupaten Malang

Financial literacy has been proven to have a positive effect on increasing economic welfare. Apart from that, financial literacy is also needed to mitigate the risk of crime or fraud which often occurs in the world of financial investment. Considering the importance of financial literacy, service activities through the personal financial planning education program are held to create people who are aware of the importance of financial planning. The activity was held for the community of vocational school teachers in Malang Regency (MGMP Malang). The results of the activity showed good enthusiasm from the participants. Participants felt they had gained new knowledge in the world of finance and planning. Changes in behavior and views about finances were also visible from what participants said after the training program

Ensuring Security and Compliance in Money Movement Tools: Addressing Fraud Risk and Regulatory Requirements

Ensuring Security and Compliance in Money Movement Tools: Addressing Fraud Risk and Regulatory Requirements

Reducing dishonest disclosures during expense reimbursement: investigating the predictive power of the technology acceptance model with a corporate governance perspective

Purpose Companies allowing employees to self-report business expenses face the risk of expense fraud because some occasionally engage in dishonest behavior to receive reimbursements for their use. Drawing on the technology acceptance model, this study aims to investigate the effects of perceived usefulness, perceived ease of use and perceived security on the trust in e-reimbursement systems and the relationship with honest disclosure intention. Design/methodology/approach A self-administered questionnaire was distributed to 254 respondents, with the partial least squares structural equation modeling used to analyze the data. Findings The findings showed that perceived security and perceived usefulness explained trust in e-reimbursement systems, whereas perceived ease of use had no significant effect on it. Corporate governance and trust in e-reimbursement systems have a positive relationship with whistleblowing intention. At the same time, corporate governance mediates the relationship between trust in e-reimbursement systems and honest disclosure intention. Originality/value This study sheds light on using e-reimbursement systems within organizations to prevent fraudulent reimbursements and offers recommendations to management on enhancing employees’ intention to engage in honest disclosure behavior through e-reimbursement systems.

Research on the risk governance of fraudulent reimbursement of patient consultation fees.

The fundamental medical insurance fund, often referred to as the public's "life-saving fund," plays a crucial role in both individual well-being and the pursuit of social justice. Medicare fraudulent claims reduce "life-saving money" to "Tang's monk meat", undermining social justice and affecting social stability. We utilized crawler technology to gather textual data from 215 cases involving fraudulent health insurance claims. Simultaneously, statistical data spanning 2018 to 2021 was collected from the official websites of the China Medical Insurance Bureau and Anhui Medical Insurance Bureau. The collected data underwent comprehensive analysis through Excel, SPSS 26.0 and R4.2.1. Differential Auto-Regressive Moving Average Model (ARIMA (p, d, q)) was used to fit the fund safety forecast model, and test the predictive validity of the forecast model on the fund security data from July 2021 to October 2023 (the fund security data of Anhui Province from September 2021 to October 2023). The outcomes revealed that fraudulent claims by health insurance stakeholders adversely impact the equity of health insurance funds. Furthermore, the risk management practices of Medicare fund administrators influence the publication of fraudulent claims cases. Notably, differences among Medicare stakeholders were observed in the prevalence of fraudulent claims. Additionally, effective governance of fraudulent claims risks was found to have a positive impact on the overall health of healthcare funds. Moreover, the predictive validity of the forecast model on the national and Anhui province's fund security data was 92.86% and 100% respectively. We propose four recommendations for the governance of health insurance fraudulent claims risk behaviors. These recommendations include strategies such as "combatting health insurance fraudulent claims to preserve the fairness of health insurance funds", "introducing initiatives for fraud risk governance and strengthening awareness of the rule of law", "focusing on designated medical institutions and establishing a robust long-term regulatory system", and "adapting to contemporary needs while maintaining a focus on long-term regulation".

A Survey on the Role of Technological Innovation in Nigerian Deposit Money Bank Fraud Prevention

Technological innovation plays a pivotal role in transforming the landscape of fraud prevention within Nigeria Deposit Money Banks (DMBs). This research explores the multifaceted impact of advanced technologies on fortifying the defenses of DMBs against fraudulent activities. Leveraging a comprehensive analysis of survey results and empirical data, the study delves into the perceptions and attitudes of stakeholders towards the integration of innovative solutions, including advanced data analytics, machine learning algorithms, real-time monitoring systems, and block chain technology. The findings reveal a widespread consensus among participants regarding the positive impact of these technologies on early fraud detection, prevention, and overall security. Notably, 86% of respondents acknowledge the positive impact of advanced data analytics and machine learning algorithms, emphasizing their potential benefits in thwarting fraudulent activities. Real-time monitoring systems, artificial intelligence, robust encryption, and cyber security protocols were also recognized by a majority of participants, affirming their crucial roles in bolstering fraud prevention measures within DMBs. The study employs a chi-square test to establish significant relationships between technological innovation and the enhancement of fraud prevention mechanisms, supported by calculated values exceeding critical thresholds. Furthermore, the abstract highlights the importance of continuous staff training, collaboration with fintech innovators, and regular security audits as integral components of a holistic fraud prevention strategy. The overall positive sentiments expressed by respondents underscore the transformative potential of technological innovation in mitigating fraud risks. This study contributes valuable insights that inform decision-making processes, guiding the strategic integration of advanced technologies within the Nigerian banking sector to reinforce operational frameworks against emerging fraud challenges. Technological innovation stands as an indispensable catalyst for fortifying the defense mechanisms of Nigeria Deposit Money Banks against fraud. The seamless integration of advanced technologies not only enhances security measures but also fosters a more robust, efficient, and resilient banking system, thereby mitigating risks and fostering sustainable growth in the financial sector.

Does Forensic Accounting Matter? Diagnosing Fraud Using the Internal Control System and Big Data on Audit Institutions in Indonesia

This study aims to determine the relationship between awareness of the use of forensic accounting and the role of the internal control system (COSO) mediated by Big Data Analysis (BDA) towards interest in using forensic accounting in detecting fraud. The research design is a case study with a quantitative approach. The sample for this study was 331 auditor respondents spread across KAP, BPK and BPKP in Indonesia. The data used is primary data with research methods through interviews and surveys at the Indonesian auditor institutions. The weakness of companies is that on average they still use data systems that are not integrated, so there are risks in terms of data security. The results of this study prove that Big Data Analysis mediates the relationship between Awareness of Forensic Accounting on Intentions of Forensic Accounting. Also, Big Data Analysis mediates the relationship between COSO on Intentions of Forensic Accounting. The results show that the seventh hypothesis proposed is statistically proven. This study proves that the implementation of a good internal control system will be an effective tool to control fraud risk. Internal controls can be fully effective if the organization is able to understand the most vulnerable risks and how to respond to fraud. BDA with data mining techniques that contribute to decision-making and fraud detection. Auditors can find and extract hidden patterns in large amounts of data by using Big Data to detect fraud.

Internal auditing's role in preventing and detecting fraud: An empirical analysis

Internal auditing plays a pivotal role in preventing and detecting fraudulent activities. However, the orientation and role of internal auditing in dealing with fraud risk can vary significantly across different companies. This study examines the relationship between the internal audit function (IAF) and fraud, providing new insights into the current practices of internal auditing. Using a survey dataset comprising responses from 275 Chief Audit Executives across Germany, Switzerland and Austria, we investigate factors that correlate with an increased propensity for IAFs to engage in fraud prevention and detection. Our findings suggest that a robust corporate governance environment significantly influences the extent to which the IAF is involved in preventing and detecting fraud. Shedding light on the positioning of internal auditing between management and the audit committee with respect to fraud, our results show that increased IAF involvement with management positively affects the level of activities to prevent and detect fraud, while increased IAF involvement with the audit committee has the opposite effect. Furthermore, we find that the propensity of IAFs to engage in fraud prevention and detection increases when the IAF applies technology‐based auditing techniques for risk identification. Our results have implications for building appropriate protection against the steadily increasing risk of fraud within organizations, while holistically addressing the ambiguity regarding the responsibility for preventing and detecting fraud.

Drug Promotions Between Ethics, Regulations, and Financial Interests.

The promotion of the latest medicines produced by the pharmaceutical industry is an important issue both from an ethical point of view (the level of accessibility, the way research is carried out) and from the point of view of marketing and especially from the lobbying issues raised. The ethical dilemmas raised by the promotion of new drugs revolve between the need to discover new molecules important for treating a wide range of diseases and the need to establish a battery of ethical rules, absolutely necessary for regulations in the field to be compliant with all ethical principles. A literature search was conducted through PubMed, MEDLINE, Plus, Scopus, and Web of Science (2015-2023) using combinations of keywords, including drugs, medical publicity, and pharma marketing plus ethical dilemma. The promotion of medicines is governed by advertising laws and regulations in many countries, including at EU level, based on the need for countries to ensure that the promotion and advertising of medicines is truthful, based on information understood by consumers. The ethical analysis of the issues raised is more necessary and complex as the channels used for promotion are more accessible to the population, and the information, easier to obtain, can be the cause of increased self-medication and overeating. Large amounts of money invested in the development of new molecules, but also the risk of scientific fraud through manipulation of data during clinical trials, selective or biased publication of information can have repercussions on the health of the population. The development of new pharmaceutical molecules is necessary to intervene and treat as many conditions as possible, but marketing must not neglect the observance of ethical principles. The promotion of medicines should be the attribute especially of the medical staff, which should also be a mandatory part of the mechanism for approving the marketing methods and means used by the pharmaceutical companies.

ЕФЕКТИВНІСТЬ КРИПТОВАЛЮТ ЯК ЗАСОБУ МІЖНАРОДНИХ ПЛАТЕЖІВ: АНАЛІЗ ВАРТОСТІ, ШВИДКОСТІ ТА БЕЗПЕКИ ТРАНЗАКЦІЙ

This article focuses on the effectiveness of using cryptocurrencies as a means for international payments, with an emphasis on the analysis of cost, speed, and security of transactions. The aim of the study is to explore the potential of blockchain technologies to optimize international financial operations. This research considers the performance of cryptocurrencies in international payments, focusing on an analysis of cost, speed, and security of transactions, utilizing data from various sources and case studies. Blockchain technologiessuch as Ripple and Solana demonstrate high throughput, capable of processing up to 65,000 transactions per second (TPS).In comparison, traditional banking systems offer significantly lower processing speeds, withBitcoin handling around 7 TPS and Ethereum up to 15 TPS. The anticipated Ethereum 2.0 network upgrade projects an increase to 100,000 TPS, significantly enhancing their potential in international payments. Traditional banking transactions can incur fees of up to $50 USD, whereas blockchain networks can reduce costs to less than $0.01 per transaction. The implementation of distributed ledger technology could save up to $27 billion by 2030 on international transactions. According to research, the average cost of an international remittance is 6.4% of a $200 transaction, indicating the potential for significantsavingsthrough the adoption of cryptocurrencies. Cryptocurrency payments are protected using cryptographic methods and decentralization, reducing the risks of fraud and attacks. By adhering to "privacy by default" principles, transaction confidentiality can be further enhanced, including generating new addresses for each transaction. Regular security audits and multi-factor authentication provide an additional layer of protection. It can be asserted that blockchain technology offers significant advantages in speed, cost, and security of transactions, which could radically transform the landscape of international trade and financial transfers. The practical significance of the research lies in identifying the potential of cryptocurrencies as a reliable, cost-effective, and secure tool for international payments, which may alter the global money transfer system.

Detecting Fraudulent Student Communication in a Multiple Choice Online Test Environment

Online evaluation systems, pervasive nowadays, are known to be susceptible to higher fraud risks. This work proposes a novel and robust method to detect potential fraud acts in online multiple-choice question (MCQ) exams. For the first time, the communication probability between the examinees is statistically assessed based on the concordance of responses and answer time against null expectations and is subsequently used to identify potential fraud behavior. The model is sensitive to the direction of communication acts, distinguishing content consumption from production, as well as multiwise communication channels. Online remote tests from engineering courses at Técnico Lisboa are used as a case study. We show that the cumulative contribution of concordant responses between students, when recurrent, offers a way of signaling fraud behavior. Separating content production from consumption reveals the underlying student role played in potential fraud acts. Collusion behavior is assessed against null models of fraud and conformity, and therefore being statistically framed and offering a solid criterion to guide tutors in ascertaining fraud and discouraging communication.

Sustainable Digital Evolution: Transforming the Ukrainian Customs Service

The evolving landscape of information technologies has spurred a profound digital revolution across cultural, societal, organizational, and governmental domains. This article examines the transformative impact of Information and Communications Technology (ICT) and electronic systems within Ukrainian customs operations and their broader societal implications. At the core of this exploration lies the pivotal role of ICT integration in modernizing the Ukrainian Customs Service amidst global challenges, exemplified by the COVID-19 pandemic. The study assesses the benefits, challenges, and implications of “electronic customs” and IT-driven reforms, focusing on the three pillars of sustainability, customs operations, and digital culture. Objectives encompass an evaluation of ICT’s significance in enhancing border management efficiency, addressing challenges, and leveraging opportunities through technology-driven customs initiatives. Synthesizing academic publications and governmental reports, the article provides comprehensive insights into the transformative potential of technology in customs management. Notably, the implementation of anti-corruption measures, particularly through the Single Window system, emerges as a successful endeavor in curbing malpractices while streamlining customs procedures. However, challenges persist, including swift adoption, cyber fraud risks, and systemic issues within customs authorities, necessitating phased implementation and continuous improvement. Ethical reflections on technology integration into governance mechanisms, educational reforms, and inclusivity discussions underscore the broader societal and philosophical shifts catalyzed by electronic customs. This sustainable digital evolution emphasizes ongoing ethical considerations to navigate the evolving role of technology in shaping governance, societal integration, sustainable customs operations, and the inherent alignment of digital technologies with the key objectives of sustainable development.
 Keywords: customs operations, digital culture, sustainable development, Single Window, cybersecurity, Information and Communication Technology, societal impact, ethical framework, cultural shifts

Risiko Kecurangan (Fraud) pada Pemerintah Daerah di Indonesia: Analisis Terhadap Temuan Audit

The risk of fraud in local governments in districts and cities resulting from internal control deficiencies was reported in a series of audits carried out by the Audit Board. This research analyzes 23 Audit Reports on the Financial Report of Regency and City Regional Governments in Aceh for the 2022 Fiscal Year issued by the Aceh Province Representative of Audit Board. The Audit Result Reports on the Financial Reports of the Regional Government of Regency Municipalities in Aceh for the 2022 Fiscal Year observed in this research each contained between 10 and 21 findings with an average of 16 findings related to weaknesses in the internal control system and non-compliance with legislative regulations. Some of these entities, city districts, are indeed small. The 23 district and city government control audits, 18 (78%) which is considered to have a good internal control system and operates effectively, resulting in an audit opinion of "Unqualified ". The remaining 5 district and city government control audits (22%) identified internal control deficiencies and contains recommendations for improvement with a number ranging from 10 to 21 with an average of 16 recommendations per audit. Not all recommendations involve a lack of control, but most do (due in part to budgeting issues).

The Influence of Covid-19 Pandemy on Financial Fraud Risk Assessment

The Influence of Covid-19 Pandemy on Financial Fraud Risk Assessment