Opportunities For Fraud Research Articles

The Role of Fraud Opportunities in Procurement Irregularities at Public National Referral Hospitals in Nairobi County, Kenya

Procurement fraud is a major challenge in Kenya’s health sector, where it continues undermining the delivery of effective services. Although various regulatory and legislative measures have been implemented to address this issue, procurement fraud persists, especially in Nairobi County. Guided by the fraud diamond and routine activities theories, this study examined the role of fraud opportunities—including opportunities for collusion, ineffective control mechanisms, accountability gaps, poor tone at the top, and inadequate monitoring—in facilitating procurement fraud within public National Referral Hospitals (NRHs) in Nairobi County, Kenya. A cross-sectional descriptive survey design was used for the study. Data were collected from randomly selected procurement and staff in three NRHs using structured questionnaires. Correlation and simple linear regression analyses were then performed using SPSS. The findings reveal that fraud opportunities significantly influence procurement fraud as they explain 57.9% (R² = .579) of its variance. Key vulnerabilities include opportunities for collusion, weak internal controls, poor accountability mechanisms, and leadership deficiencies that create an enabling environment for fraudulent activities. The study concludes that opportunities for fraud arising from weak internal controls and inadequate monitoring are major contributors to procurement irregularities in public NRHs. Based on the results, we argue that there is a need for the implementation of comprehensive procurement policies, institutionalization of periodic audits, enforcement of accountability measures, and adoption of technological tools to deter fraud. Future studies should explore the interplay between fraud opportunities and other drivers, such as rationalization and capability, in different public sector settings.

DNA-based detection of Rat in the meatballs product using a real-time polymerase chain reaction method

The meat-based products are highly susceptible to counterfeiting, primarily due to high consumer demand of meat derivative products, such as meatballs. This demand creates opportunities for food fraud by specific industries, including adulterating meat with non-halal species, such as rats. This research aimed to detect rat meat contamination in meatball samples from the Indonesian local market using Real-time Polymerase Chain Reaction (RT-PCR). The RT-PCR amplification involved an initial denaturation step at 95°C for 3 minutes, followed by denaturation at 95°C for 15 seconds, and annealing/extension at 60°C for 1 minute. The rat-specific probe primer included in the kit produced an increasing curve in the External Positive Control (EPC) with a Ct value of 27.22, and no amplification occurred in the Negative Control (NTC). The analysis of 30 samples from meatball vendors yielded negative results, as there was no increase in the FAM (rat) curve, indicating that none of the meatballs were contaminated with rat DNA.

Implementing Situational Crime Prevention Theory in the Matter of Financial fraudulent

Fraud and financial crime continue to pose significant challenges for private companies, making prevention efforts essential through the identification of their root causes. This study examines the relationship between situational crime prevention and financial fraud, with a focus on employee tenure as a moderating variable. An empirical research method was employed, with data collected from employees of PT Budi Jaya and its subsidiaries through questionnaires. A total of 60 valid responses were analyzed using WarpPLS. The findings reveal that situational crime prevention—measured through indicators such as minimal benefits, high risks, limited opportunities, and strict sanctions—has a significant negative impact on financial fraud. Additionally, the study demonstrates that employee tenure moderates the relationship between situational crime prevention measures and financial fraud. This research makes a theoretical contribution to situational crime prevention theory by incorporating the concept of rationalization, which fraud perpetrators often use to justify their actions. The study offers practical insights, suggesting that companies and regulators should implement robust internal control systems to minimize opportunities for fraud and establish clear, stringent rules and sanctions to deter fraudulent behavior.

Mismanagement and poor transparency in the European processed seafood supply revealed by DNA metabarcoding

In the global processed seafood industry, disparate actors play different roles along the supply chain, creating multiple opportunities for mistakes, malpractice, and fraud. As a consequence, consumers may be exposed to non-authentic products, which hinder informed purchasing decisions and broader efforts to improve trade transparency and sustainability. Here, we characterised the taxonomic composition of 62 processed seafood products in Italian, British and Albanian retailers, purposefully obtained from different supply routes, using multiple DNA metabarcoding markers. By combining molecular results with metadata reported on labels, we revealed patterns of mislabelling in 24 products (39%) across sampling regions, denoting lack of transparency of processed seafood products based on resources sourced from either Europe or globally. We show that the accuracy of label claims and the mis-represented and underestimated levels of traded biodiversity are largely determined by the management of raw material by global processors. Our study shows that DNA metabarcoding is a powerful and novel authentication tool that is mature for application at different stages of the seafood supply chain to protect consumers and improve the sustainable management of fish stocks.

Trollope's Boxes: Liberal Privacy and Its Consequences in Phineas Finn and The Eustace Diamonds

Abstract This article explores Anthony Trollope's attempts to answer a question that preoccupied Britain's Liberal party in the second half of the nineteenth century: Should all subjects have an equal right to privacy? Trollope's Palliser novels Phineas Finn (1867–68) and The Eustace Diamonds (1871–73) examine this question through locked containers—the ballot box and the safe, respectively—that promise individual privacy but also create opportunities for dishonesty, deception, and fraud. Trollope's depiction of these material objects underscores his view that privacy is a privilege rather than a right and that it should only be granted to citizens who are capable of wielding it responsibly. Responding to recent legislation that extended privacy rights to women (in the Married Women's Property Act of 1870) and working-class men (in the Ballot Act of 1872), Trollope warns readers that the safety deposit box in The Eustace Diamonds and the ballot box in Phineas Finn present opportunities for the abuse and misuse of discretion by these subjects. The containers in these two novels thus reveal Trollope's reluctance to extend the privileges of liberalism beyond the sphere of middle-class men.

Online payment fraud prediction with machine learning approach using naive bayes algorithm

The increase in e-commerce has provided easy access for the public, but it also opens up opportunities for fraud in online transactions. Payment fraud is also a problem that often arises in transactions through electronic media. This research aims to analyze payment fraud in e-commerce transactions. This research uses a machine learning approach using the Naive Bayes algorithm. This research uses online transaction datasets involving various attributes such as payment and shipping methods. The developed Naive Bayes model achieved an accuracy of 61.03% with K = 7. The evaluation shows a balance between precision (59.46%) and recall (62.05%), although this study is limited by data quality and basic assumptions of Naive Bayes. In future research, it is worth considering the use of additional features or more complex data processing to improve the performance of fraud detection in online transactions. This research provides important insights in the fight against financial crime in the context of electronic commerce.

Analysis of Fraud Hexagon Theory on Fraudulent Financial Reporting Based on The Role of Intellectual Capital As A Mediator That is Influenced by Earnings Management Practices

Fraudulent financial reporting is a serious problem faced by companies throughout the world. This fraud can have fatal consequences for the company, such as loss of investor confidence, decline in share value, and even bankruptcy. There are various theories that can be used to analyze financial statement fraud, one of which is the fraud hexagon theory. This research aims to analyze the fraud hexagon theory of fraudulent financial reporting based on the role of intellectual capital as a mediator which is influenced by earnings management practices. In this study, researchers used qualitative methods with data collection techniques through literature studies. The data collected was analyzed through three steps, which included data reduction, data presentation, and making conclusions. The findings in the study show that the Fraud Hexagon theory provides a comprehensive framework for understanding the factors that encourage fraudulent financial reporting by including six key elements: pressure, opportunity, rationalization, competence, arrogance and collusion. In this context, earnings management practices are often the main trigger. The pressure experienced by management to meet financial targets can encourage them to carry out earnings management, which in turn increases the risk of fraudulent financial reporting. Opportunities for fraud often exist due to weaknesses in internal controls, which allow manipulation of financial data without detection.

Regulatory and Legal Ways to Resolve Existing Conflicts in the Field of Cyber Security in the Context of the Creation of Cyber Forces of the Armed Forces of Ukraine

The current proliferation and commercialization of cyber attack tools has changed the balance of power in cyberspace and allowed a wide range of actors to use cyber tools for geopolitical influence and economic gain. The applicable tools, which can be freely used, provide unprecedented opportunities for espionage, fraud and hacking, the use of which is aimed at financial gain, disruption of the sustainable functioning of critical infrastructure facilities and various forms of ownership of electronic communication systems and networks.The dynamics of the current situation regarding the ability to buy ready-made hardware and software solutions and create individual cyber tools continues to “challenge” national security, the commercial sector and the civilian population.By increasing the ability to acquire cyber tools on a commercial basis, both state and non-state actors can quickly move from new threats to existing ones, so this leap is seen as a key factor in the cyber defense landscape. In the future, this can lead to a high level of geopolitical instability in conflicts that will be more difficult to predict than traditional military changes in the balance of power.Under these conditions, an important task for Ukraine is to create conditions for protecting sovereignty and ensuring the defense capability of the state in cyberspace by supporting the capabilities of the defense forces to carry out active cyber protection of its own information infrastructure and preparing the state to repel military aggression in cyberspace both in peacetime and in a state of war (a special period ).In view of the above, this paper analyzes the current regulatory legal acts of the state regarding the implementation of relevant tasks by cyber security entities within the framework of state cyber defense and national cyber defense measures with the aim of delimiting powers, establishing responsibility for specific areas of activity and implementing priority tasks in this field.

Pandemic profiteering at a time of crisis: Using python to detect fraud in covid-19 testing and treatment payments

During the pandemic, the Centre for Medicare and Medicaid Services (CMS) introduced blanket waivers and rule flexibilities to address rising COVID-19 cases. This included expanding telehealth services to urban areas and waiving certain reporting requirements, along with various testing options such as surveillance testing, school and workplace testing, self-tests, and testing in more inpatient settings such as nursing homes. The federal and state governments also covered COVID-19 testing, vaccination and treatment for the uninsured population, creating opportunities for fraud and unnecessary testing, double billing, kickbacks, and deceased billing, mainly for monetary gain, by unscrupulous healthcare providers. Using Python programming, the study adopted an unsupervised learning approach by employing Isolation Forest to detect healthcare providers who were anomalies in the payment for COVID-19, treatment and vaccination by the Health Resources and Services Administration (HRSA). Additionally, using official search enquiry into official U.S. government websites such as the FBI, USDOJ, and HHS-OIG, this study identified eight (8) fraud, waste and abuse schemes related to laboratory testing and treatment. The isolation forest algorithm, set at a 5% contamination level, identified 1,890 healthcare providers (7.64% of total claims) as being anomalies. These results support the recommendations given to the HRSA by the Office of Inspector General of the Department of Health and Human Services (HHS-OIG), emphasizing the need for identifying and addressing improper payments. Protecting public health resources requires preventing fraud in the healthcare industry. Strong education programs for healthcare workers are crucial, as are vigilant oversight and collaboration between federal and state agencies. Additionally, this study emphasizes how crucial it is to use official government resources—such as the FBI, HHS-OIG, USDOJ, and CDC—to efficiently detect and prevent fraudulent activities. In the wake of information asymmetry, calls for private‒public partnerships are needed to address fraud, waste and abuse in the healthcare industry.

Pengaruh Good Governance dan Sistem Pengendalian Intern Pemerintah (SPIP) Terhadap Pencegahan Fraud Dengan Akuntabilitas Sebagai Variabel Mediasi

Good governance procedures that are implemented properly can avoid opportunities for fraud to occur. In addition, preventing fraud can be done by implementing the Government Internal Control System (SPIP). The purpose of this study is to explain the influence of the government's internal control system through accountability for fraud. The types of data used are primary data and secondary data. The data collection technique was carried out by distributing 60 questionnaires. The population in this study were all village officials in the Cibitung sub-district. The data analysis technique uses multiple linear regression analysis techniques and path analysis with the help of the SPSS version 26 program. The results of this study indicate that good governance has an effect on fraud while the government internal control system (SPIP) has no effect on fraud, good governance has an effect on fraud through accountability and the government's internal control system (SPIP) influences fraud through accountability.

Asses the Behaviour of Consumers for Enhancing Claims Processing and Fraud Detection in Insurance Through Blockchain Technology

The rapid advancement of blockchain technology presents a transformative opportunity for the insurance industry, particularly in claims processing and fraud detection. This paper explores the impact of blockchain technology on consumer behavior and its potential to enhance the efficiency and security of insurance operations. We begin by providing a comprehensive overview of blockchain technology, outlining its decentralized nature, immutability, and transparency. We then delve into the current challenges faced by the insurance industry, including prolonged claims processes and prevalent fraudulent activities. Through a mixed-methods approach, incorporating both quantitative surveys and qualitative interviews, we analyze how consumers perceive and interact with blockchain-based insurance solutions. The findings suggest that while there is general awareness about blockchain, its understanding remains limited among consumers. However, our study indicates a positive correlation between blockchain adoption and increased trust in insurance processes, driven by the technology's inherent characteristics of security and data integrity. Furthermore, we discuss several blockchain implementations, such as smart contracts that automate claims adjudication, and decentralized applications that ensure transparency and reduce opportunities for fraud. Finally, we propose a framework for insurance companies to effectively integrate blockchain technology, emphasizing consumer education, stakeholder engagement, and regulatory compliance. This study not only highlights the transformative potential of blockchain in reshaping consumer behavior and operational processes in insurance but also provides strategic insights for stakeholders aiming to harness these innovations for improved service delivery and fraud mitigation. The study titled "Assess the behavior of consumers for enhancing claims processing and fraud detection in insurance through blockchain technology" aims to explore how blockchain can revolutionize the insurance sector by influencing consumer behavior, improving claims processing, and enhancing fraud detection mechanisms. The focus of this research involves several key areas. This study explores the behavior of consumers in the context of enhancing claims processing and fraud detection in the insurance sector through the adoption of blockchain technology. Blockchain, known for its decentralized and transparent nature, holds promise for revolutionizing traditional insurance processes by improving transparency, efficiency, and security. However, successful integration relies heavily on consumer acceptance and adoption. This research aims to investigate consumer attitudes, perceptions, and intentions towards blockchain-based insurance solutions. Drawing upon established theories of technology acceptance and consumer behavior, the study examines factors influencing consumer trust, privacy concerns, and perceived benefits of blockchain in insurance. Additionally, demographic variations in consumer behavior and the impact of cultural and regulatory factors are explored. Through a comprehensive literature review and empirical research methods such as surveys and interviews, this study seeks to provide insights into how insurers can effectively engage consumers, address concerns, and leverage blockchain technology to enhance claims processing efficiency and fraud detection capabilities. The findings aim to inform strategic decision-making for insurance companies, regulators, and policymakers, facilitating the successful adoption and implementation of blockchain solutions in the insurance industry.

Perspektif Fraud Hexagon Theory dalam Perilaku Academic Fraud: Studi Explanatory pada Mahasiswa Akuntansi

Fraudulent behavior has become the center of attention recently. Fraud also occurs in the academic world, better known as academic fraud. The purpose of this research is to examine and analyze the influence of (1) pressure on academic fraud behavior of accounting students in Banjarmasin; (2) opportunity to academic fraud behavior of accounting students in Banjarmasin; (3) rationalization to academic fraud behavior of accounting students in Banjarmasin; (4) capability to academic fraud behavior of accounting students in Banjarmasin; (5) ego to academic fraud behavior of accounting students in Banjarmasin; and (6) collusion to academic fraud behavior of accounting students in Banjarmasin. The population of this study is 2,404 accounting students in PTN or PTS in Banjarmasin. At the same time, the sample of this study was derived based on Yount’s sampling percentage table. There are 120 students determined as the sample. The data were collected by deploying a google form questionnaire to the respondents. The data was then analyzed using the multiple linear regression method. This study concludes that only rationalization and capability significantly influence the academic fraud behavior of accounting students in Banjarmasin. At the same time, the other elements of fraud hexagon, such as pressure, opportunity, ego, and collusion did not significantly influence the academic fraud behavior of accounting students in Banjarmasin. The results of the research serve as input for academics to improve the learning system and make efforts to minimize opportunities for academic fraud by students. These efforts can be made by improving the control system during exams and self-assessment assignments

Pengaruh Karakteristik Komite Audit terhadap Kecurangan Pelaporan Keuangan (Studi Empiris Perusahaan Manufaktur Sub Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Periode 2020-2022)

The evolution of economic conditions provides many opportunities for corporate fraud. One form of fraud that often occurs on an international scale and in Indonesia is fraudulent financial reporting in manufacturing companies in the food and beverage sub sector. This research aims to determine empirically the influence of independent audit committees, financial expertise and frequency of audit committee meetings on fraudulent financial reporting in food and beverage subsector manufacturing companies listed on the Indonesia Stock Exchange. The type of research used is quantitative research. The research sample used was a purposive sampling method, where the sample was determined based on certain criteria, totaling 23 companies. The type of data used in this research is secondary data. The data source used is the annual report of each company published on the website www.idx.co.id. The research results show that the independent audit committee has no significant effect on fraudulent financial reporting, while financial expertise and the frequency/number of audit committee meetings partially have a significant effect on fraudulent financial reporting.

Analysis of the Application of the Principles of Business Ethics in Islam

The development of technology has changed the way people conduct online buying and selling transactions, because it is more efficient, can be done anywhere. However, this raises new problems such as opportunities for fraud, payment, delivery of goods that are not suitable, guarantees that do not guarantee, which result in losses between the two parties. The purpose of this research is to understand in depth about the sales ethics of the lazadaa application. This type of research is field research with a descriptive qualitative approach. The results of the study that with the application of Islamic ethics in buying and selling, a healthy and blessed business climate will be achieved so that an Islamic community order is achieved in the lazadaa application. The conclusion of this study is that the sales ethics applied by sellers who are applied in the lazadaa application have gone well but some have not been in accordance with the principles of Islamic business ethics, by applying the ethics of buying and selling in accordance with the principles of sharia business ethics, it will achieve benefits in life both individually, society, and the state. The limitation in this study is that researchers only get a little information on lazadaa users. The author hopes that more attention will be paid to the principles of Islamic business ethics in using the lazadaa application to achieve a goal, hopefully it can be a lesson for all Muslims, so that there is an urge to make a good change.

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.

Upaya Pencegahan White Collar Crime

White collar crime is increasingly prevalent in various corporate sectors and causes significant financial losses and damage to public trust. This type of crime includes embezzlement of funds, manipulation of financial statements, bribery, insider trading in the capital market, and theft of customer personal data. Although it occurs a lot, the prevention of white collar crime is still not optimal and the perpetrators are rarely prosecuted properly. This paper aims to analyze the various determinants that influence the occurrence of white collar crime in order to formulate policy recommendations and prevention strategies in the future. A systematic approach is used by applying the fraud triangle theory which focuses on the three main elements that cause fraud, namely pressure, opportunity and rationalization. The results of the study show that pressure to meet high performance targets and large bonuses often encourage individuals to commit fraud. Meanwhile, weak supervision and lack of transparency create opportunities for fraud. Perpetrators also often justify their actions, for example by assuming that they will not be caught or the value of the loss is small. The complexity of modern corporate operations also increases opportunities for white-collar crime. Effective prevention efforts must be comprehensive by involving various parties and strengthening a number of aspects as controls. The role of internal and external supervisors (auditors) of companies needs to be continuously improved, supported by modem fraud detection technology tools. Whistleblowing mechanisms need to be strengthened in every company and kept confidential to encourage early reporting of fraud indications.

Realitas Tersembunyi : Praktik Dramaturgi Mahasiswa Penerima Beasiswa KIPK

The KIP-Kuliah Scholarship is study assistance for prospective students from limited economic backgrounds with academic achievements. Online registration makes the process easier, but opens up opportunities for fraud, especially in data manipulation. This research adopts Goffman's Dramaturgy theory, viewing social interactions as performances where scholarship applicants act like actors. As well as using the perspective of Risk Society theory by Ulrich Beck, which states that risk is present in modern society as the impact of changes in technology, economics and social structure. This research is qualitative research with a phenomenological approach. This research aims to reveal the front and back stages of students receiving KIPK scholarships. The results show dramaturgical practices where some Kipk students act as incapable individuals on the front stage but live hedonistic lives on the back stage. Ironically, modernization intended to make scholarship registration easier actually carries the risk of manipulation and hedonistic behavior among students.

Beyond the Bribe

Greater media and scholarly coverage of corruption and fraud in local-level NGOs in developing countries has brought attention to the complex and often contradictory underbelly of global civil society. The vast majority of social science research on corruption and fraud focuses on governments, corporations, and large-scale organizations. While some scholarship has examined the conditions that allow the proliferation of corruption and fraudulent activities in local-level NGOs, most of this work emerges from the global North and frequently fails to consider the unique conditions of the global South. The first section of this article summarizes foundational theories on corruption and fraud, highlighting their Western standpoint, which can be limiting in the context of developing nations. The second section turns to the contemporary development literature on local-level NGOs in the global South to illustrate why any exploration of corruption and fraud in these organizations must first address their unique circumstances, including globalization and neoliberalism, environments of uncertainty, organizational frames, and national structures of inequality, and how each can create opportunities for corruption and fraud. The review concludes with a case study of alleged corruption and fraud at a local-level NGO in Kathmandu, Nepal, to illustrate the vulnerability of such NGOs and how an integrated approach can provide a better model for understanding the complexities of corruption and fraud in the developing world.

The potential of corruption based on Hofstede cultural dimensions and institutional quality: an international evidence

PurposeThis paper aims to investigate the risk of corruption in several countries based on the cultural dimensions of Hofstede and institutional quality (IQ).Design/methodology/approachData was collected from the Corruption Perception Index, Hofstede index and Worldwide Governance Indicators in 92 countries. Structural equation modeling based on partial least squares was used to test the proposed model.FindingsThe findings support the fraud triangle theory, which states that high transparency of individualist cultural attitudes and institutional control mechanisms reduces the opportunities for fraud to occur. From this research, it is also concluded that culture is a factor that tends to be constant and difficult to change.Research limitations/implicationsResearch limitations include: First, it is limited to the number of samples, where the number of samples depends on the availability of data. However, only 92 countries intersect and have complete information. Second, this study only uses individualism from the Hofstede cultural dimension to see the risk of corruption.Practical implicationsThe result of this study implicates the policymakers in government agencies to increase IQ to reduce the risk of corruption.Originality/valueThis is a preliminary study that discusses national culture (NC) and corruption, as well as the effect of the mediating variable, namely, the IQ. By including IQ, the authors hope that the impact of the effects of NC on corruption risk can be clarified.

Financial Reporting Fraud and Models to Assist in Detecting Financial Statement Fraud

The article has used the methodology, analysis and synthesis to accomplish the set research objectives. Accordingly, based on the methodology, the article has presented the concept, purpose and importance of information provided in financial statements. Under many influences such as pressure to commit fraud, opportunities for fraud or management's attitude will lead to the intention to manipulate the financial statements. Next, the article also analyzes typical fraud cases, the impact of fraudulent financial statements on all financial market participants and identifies common forms of financial fraud in Vietnam. Vietnam. From these common types of fraud, the authors also propose two typical models to support fraud detection that are highly appreciated, the M-score model and the Z-score model.