Types Of Fraud Research Articles

Credit Card Fraud Detection using Deep Learning and Machine Learning Algorithms

Use of credit card is very common these days. And the number of frauds related to credit cards are also increasing. With the increase in the usage of internet, many organizations have shifted their work from offline to online. Same is the case with financial department. On one side, this thing has increased the ease of people but on the other hand, number of frauds have been tremendously increased. On one side, people are doing shopping without cash, paying bills without standing in long queues, doing booking online and on the other side fake accounts, scamming, credit card frauds have been increased resulting in huge amount of loss to financial system every year. Fraud is a criminal activity done by un authorized person. Credit card frauds are very common these days. There are many types of credit card frauds. Sometime they do fake calls or messages and sometimes they steal customer’s online information. Many techniques using machine learning models have been implemented in order to stop these types of frauds. But fraudsters are sometimes by pass theses traditional protective systems and make successful transaction. Traditional machine learning models are not capable enough to detect frauds using sequence of data. For this purpose, neural networks are recently used. In this paper, six machine learning algorithms are applied. Among them Random Forest and Extra trees classifier are best. And in case of neural networks, long short-term memory LSTM is best. Obtained results outperform the existed work that have been previously done in this field.

Fraud and corruption as an object of internal audit in corporate governance

Introduction. Fraud and corruption in the modern world is a pressing issue that significantly affects the functioning of the corporate sector and economic development in general. These phenomena generate serious losses for businesses, violate investor and consumer confidence, and undermine the effectiveness of the corporate governance system. Nevertheless, despite their importance, fraud and corruption remain complicated phenomena to detect and control. Therefore, internal audit is proving to be a key tool in combating these negative developments in corporate governance. It aims to identify, analyze and minimize risks related to fraud and corruption, as well as to improve the control and management system in accordance with best practices. The purpose of the paper is to analyze fraud and corruption as phenomena that affect corporate governance in order to identify their causes, forms, scope and consequences. Results. The paper examines the problem of fraud and corruption in organizations based on the complex interaction of economic, sociocultural and organizational factors. Different types of fraud and corruption such as financial manipulation, exploitation of conflict of interest, and misuse of resources are explored, as well as methods for identifying and analyzing potential fraud and corruption in organizations. Emphasized the importance of integrating these techniques into the internal control and audit system to ensure effective detection and prevention of fraud and corruption in organizations. The author presents the optimal principles that contribute to the effective role of internal audit in preventing fraud and corruption in organizations. Conclusions. Fraud and corruption, as an object of internal audit in corporate governance, are key aspects that require attention and systematic measures to detect, prevent and effectively control them. Detecting and eliminating fraud and corruption in organizations has a significant impact on business, including financial stability, reputation and efficiency. Solving these problems requires joint efforts on the part of all stakeholders, as well as the implementation of strategies and mechanisms aimed at counteracting and preventing the occurrence of such phenomena in the future.

Organised forms of online fraud: types, content and elements of forensic characteristics

The use of modern technology by fraudsters to cheat citizens has become one of the attributes of nowadays: organised forms of online fraud have emerged. Insufficient attention is paid to this topic in the scientific literature. The authors of this study have attempted to systematise the forms of organised online fraud and outline its structural elements. This article is the first one in a cycle of three articles devoted to this topic. The authors identify the most typical types of organised forms of online fraud from the vast array of fraud manifestations and analyse the specifics of their criminalistic characteristics. Types of online fraud organised forms are systematised in the study; their characterological features and mechanisms of achieving the criminal result are highlighted. On the basis of theory and law enforcement practice, online fraud organised forms’ key types are identified with some of these crimes’ criminalistic typisation characterised.

Does financial literacy contribute to facilitating residents in safeguarding their rights as financial consumers?A three-stage study based on the perspective of “fraud” phenomenon

Utilizing microdata from six provinces in East China, this study centers on the phenomenon of “fraud," employing a three-stage Probit model with dual sample selectivity to explore the impact of financial knowledge on residents' safeguarding of financial consumer rights and interests. This methodological approach effectively addresses estimation bias arising from concerns related to dual sample selectivity. The process of residents safeguarding their rights and interests when confronted with fraud unfolds in three sequential stages: “pre-fraud prevention, during fraud loss avoidance, and post-fraud rights protection." Key findings indicate that, on the whole, higher levels of financial knowledge foster residents' protection of financial consumer rights and interests. Specifically, heightened financial literacy is associated with an increased likelihood of encountering fraud, a reduced probability of incurring losses post-fraud, and an enhanced propensity for pursuing rights protection thereafter. Moreover, heterogeneity analysis reveals that the impact of financial knowledge is more pronounced among middle-aged and elderly individuals, rural inhabitants, and women. Furthermore, concerning various types of fraud, the amplification effect of financial knowledge is particularly evident in cases of telecom fraud and online fraud, though not in traditional fraud cases. Additionally, moderation effect analysis underscores that, overall, heightened attention to information, improved digital literacy, and increased social interaction can reinforce the positive influence of financial knowledge. This paper provides valuable insights for strengthening the protection of residents' financial rights and ensuring the security of their assets.

Detecting Olive Oil Fraud with Near-Infrared Spectroscopy and Chemometrics: A Modern Safety Control Approach

Background: Olive oil is one of the most essential components of the Mediterranean diet, obtained by mechanical extraction from the Olea europaea tree. Based on organoleptic properties (odor and taste) and the amount of free fatty acids, it is divided into three categories: Olive oil, virgin olive oil, and extra virgin olive oil. Due to the expensive production procedure of extra virgin olive oil, it is prone to adulteration with low-quality olive oils and other vegetable oils. Objectives: The current study focused on determining the authenticity of olive oil using near-infrared spectroscopy as a non-destructive method in conjunction with chemometrics. Methods: In this study, 100 samples of olive oils, comprising 34 domestic and 66 industrial olive oils, were purchased from the markets of Tehran and Roudbar. Common adulterants such as corn, canola, sunflower, and soybean oils were considered. Binary and ternary mixtures of olive oil with these vegetable oils were prepared and analyzed. Spectra were collected over the range of 12000 cm-1 to 4000 cm-1, and the data were preprocessed using SNV and Detrend before principal component analysis (PCA). Results: The results indicated that corn oil and canola oil were the dominant adulterants in the olive oil samples, likely due to their inexpensiveness and availability in Iran. Conclusions: Since multiple types of fraud were identified in the examined samples, it is recommended that future studies investigate other forms of fraud simultaneously. Additionally, the results demonstrated that principal component analysis could effectively categorize different samples with acceptable discrimination.

Обеспечение безопасности бизнеса от одного из видов интернет-мошенничества — фишинговых атак

In the presented scientific study, the author made an attempt to scientifically comprehend the current state of affairs and the main approaches to ensuring business security from phishing attacks, one of the most common methods of fraudulent activity used in cyberspace. The need to conduct such a study is due to the analysis of the provisions of foreign experts, indicating that phishing ranks second among the reasons for the loss of information data by businesses. The special danger of phishing threats is also noted by both domestic experts and specialists in the field of cybersecurity. The author convincingly proves that the modern world depends on technology more than ever before, which is why the creation of digital data has increased dramatically today. And because businesses store large amounts of their data on computers and transfer it across networks, the threat of phishing remains. The author focuses on the fact that the basis of the algorithm of phishing attacks is mass Internet mailing, while in the modern digital society, new ways of committing phishing attacks are constantly appearing, causing a lot of concern among experts. In this regard, it is concluded that it is possible to improve the protection of business representatives from phishing attacks through a set of measures. The use of the preventive measures proposed by the author can significantly affect the reduction of the considered type of cyber fraud. The novelty of this study is a set of measures to ensure business security from phishing threats.

Comparative Analysis of Predictive Models Using Synthetic Data for Financial Fraud Detection

This paper conducts a comparative analysis of predictive models in financial fraud detection using synthetic data. Financial fraud is an adversarial problem that is becoming increasingly common with technological advancement; fraudsters use techniques such as social engineering to lure victims into releasing confidential information for nefarious purposes. One of the types of fraud this research aims to tackle is detecting fraudulent transactions processed on customers' accounts as customers are usually responsible for bearing the costs associated with fraud. The study examines machine learning techniques applied to mitigate fraud in financial transactions under controlled five scenarios which include unusual transaction type, account behaviour profiling, and temporal correlation of transactions, time based velocity checks and 1 hour window analysis. A synthetic dataset comprising 2,549,085 transactions categorized into fraud and non fraud classes (849,695 fraudulent transactions and 1,699,390 non fraudulent transactions) was utilized for analysis. Transaction level features were employed to evaluate the performance of various machine learning classifiers and Deep Learning Algorithms. The classifiers examined include SVM, Decision Trees, Logistic Regression, Gradient Boosting, LSTM, Deep Neural Network, CNN, and Random Forest. Among these, the Random Forest Classifier demonstrates superior performance, achieving an accuracy rate of 99.18%. The evaluation primarily focuses on comparing the performance of classifiers using the confusion matrix as the primary evaluation metric. The findings indicate that the Random Forest Classifier, Decision Trees and Gradient Boosting are suitable classifiers for detecting financial fraud.

MONDEO-Tactics5G: Multistage botnet detection and tactics for 5G/6G networks

Mobile malware is a malicious code specifically designed to target mobile devices to perform multiple types of fraud. The number of attacks reported each day is increasing constantly and is causing an impact not only at the end-user level but also at the network operator level. Malware like FluBot contributes to identity theft and data loss but also enables remote Command & Control (C2) operations, which can instrument infected devices to conduct Distributed Denial of Service (DDoS) attacks. Current mobile device-installed solutions are not effective, as the end user can ignore security warnings or install malicious software. This article designs and evaluates MONDEO-Tactics5G - a multistage botnet detection mechanism that does not require software installation on end-user devices, together with tactics for 5G network operators to manage infected devices. We conducted an evaluation that demonstrates high accuracy in detecting FluBot malware, and in the different adaptation strategies to reduce the risk of DDoS while minimising the impact on the clients' satisfaction by avoiding disrupting established sessions.

Determinants of Forensic Accounting Techniques’ Choice on Fraudulent Practices’ Investigation in Nigeria: Moderating Effects of Cashless Policy

The issue of economic and financial crimes among other fraudulent practices in the past decades in Nigeria, has been in the front burner of scholars in regard to the potency of forensic accounting to tackle this menace. The choice of the techniques adopted for investigation purposes is argued to determine the success or otherwise of this. Thus, this study examined the determinants of forensic accounting techniques’ choice of practitioners in addition to the influence of cashless policy as a moderating factor. Research survey design was adopted for data collection through structured questionnaire on practitioners. Purposive sampling technique was used to determine the population and the sample size, which were 110 respondents. Data were analysed with the aid of descriptive and inferential statistics. Logistic regression results showed that size of fraud, organizational policies, and legal factors, have a positive but statistically insignificant effect, while educational attributes, industry attributes, professional fees, type of fraud, criminal evidence availability, and audit quality, showed a negative and insignificant effect on the forensic accounting techniques choice for fraudulent practices investigation. The results also depicted that the moderating variable (cashless policy) demonstrated a negative and insignificant effect on the relationship of the main variable, but with mixed results with individual components. This study, therefore, recommends that forensic accountants require a more in-depth knowledge of the respective technique and the type of the fraudulent practices, for effective and efficient forensic accounting investigation assignments.

AN Audit Evidence: Mampukah Menghadapi Fraud?

Finding out whether auditors can uncover fraud in a business using audit evidence is the goal of this study. In order to back up their findings and suggestions on an entity's financial accounts, auditors gather what is known as audit evidence. Investigating whether fraud in financial reports or other types of fraud may be aided by properly using audit data is the goal of this study. The significance of audit evidence in bolstering attempts to detect and manage fraud is further illuminated by this study. An auditor's ability to identify and prevent fraud that can hurt the business depends on his or her familiarity with the function and proper application of audit evidence. Furthermore, this study lays a solid groundwork for future improvements to audit methodologies and processes that can tackle the ever-increasing complexity of fraud. A literature review, which comprises gathering and evaluating information from several relevant sources, is the research methodology used. Because it can check the accuracy and fairness of information, uncover suspicious patterns and anomalies, disclose the truth about company transactions and activities, and give appropriate proof, audit evidence plays a significant role in detecting fraud, according to the study findings. Auditing evidence must be collected in an impartial, independent, and truthful manner if auditors are to be successful in detecting fraud. The significance of audit evidence in bolstering attempts to detect and manage fraud is further illuminated by this study.

Public Danger and Problems of Qualifying the Creation and Operation of Fraudulent Call-Centers

Relevance. The use of technological progress by criminals for criminal purposes is one of the pressing problems today. In this context, modern information and communication technologies deserve special attention, providing the possibility of global communication, exchange and storage of information, learning and knowledge acquisition, optimization and anonymization of financial transactions. Manipulating people's consciousness through the use of information and cognitive technologies is today a common way of committing various types of fraud. These opportunities are fully and actively used in the implementation of such a group form of fraud as the activities of fraudulent call centers. The purpose of the study is to assess the public danger and identify problems in qualifying the creation and operation of fraudulent call centers. Objectives: to identify compliance with the essence of the criminal activity of fraudulent call centers and assess the public danger of this criminal activity;identify problems in classifying such acts and suggest ways to eliminate them. Methodology. When writing the work, the tools of dialectical, systemic and activity-based approaches were used, as well as general logical thinking techniques, general scientific and special scientific methods.Results. It has been established that the underestimation of the public danger of the activities of fraudulent call centers, and, accordingly, the insufficient effectiveness of measures taken today to counter them, are due to ignorance of the fact that the joint criminal activities of fraudsters in this case form a criminal community. Conclusions. This type of criminal activity corresponds to all the characteristics of a criminal community (struct redness; unified leadership; the purpose of creation is to commit one or more serious or especially serious crimes to obtain directly or indirectly financial or other material benefits).In addition, the qualification of the activities of fraudulent call centers under Art.210 of the Criminal Code of the Russian Federation will allow the court to ensure the possibility of confiscation of property obtained as a result of criminal activity.

Fraud Pentagon Analysis in Preventing Academic Fraud during Online Learning in the COVID-19 Period

Students have more opportunities to commit academic fraud on online learning during the COVID-19 period. The purposes of this study are to examine the types of possible academic fraud during online learning, the motives of fraud using pentagon theory, and to provide some important recommendations for higher educationin fraud prevention. The data collection methods are questionnaires and interviews with students and lecturers at a private university in Indonesia. In addition, the data analysis is qualitative and descriptive statistical analyses. The results of this study indicate that academic fraud such as cheating, seeking help, plagiarism, and collusion occurs during online learning process. Pressure, opportunity, rationalization and arrogance are four important factors that cause academic fraud. The prevention of fraud can be through building awareness on integrity and ethical values, implementing rules and strong punishment system, building close relationship with students, improving the methods of learning and assessment, and improving internal controls.

Identification of provenance of Basmati rice grown in different regions of Punjab through multivariate analysis

High-priced Basmati rice is vulnerable to deliberate mislabeling to increase profits. This type of fraud may lower consumers’ confidence as inferior products can affect brand reputation. To address this problem, there is a need to devise a method that can efficiently distinguish Basmati rice grown in regions that are famous versus the regions that are not suitable for their production. Therefore, in this investigation, thirty-six samples of Basmati rice were collected from two zones of Punjab province (one known for Basmati rice) of Pakistan which is the major producer of Basmati rice. The elemental composition of rice samples was assessed using inductively coupled plasma-optical emission spectrometry and an organic elemental analyzer, whereas data on δ13C was acquired using isotopic ratio-mass spectrometry. Regional clustering of samples based on their respective cultivation zones was observed using multivariate data analysis techniques. Partial least squares-discriminant analysis was found to be effective in grouping rice samples from the different locations and identifying unknown samples belonging to these two regions. Further recommendations are presented to develop a better model for tracing the origin of unidentified rice samples.

Catfishing, Is it Unregulated Crime in Indonesia?

Catfishing is a type of an international cybercrime. Unfortunately, it lacks clarity in Indonesia's national framework. Catfishing, which utilizes a fake identities on the internet, can be classified as fraud. This study examines the legal consequences in personal relationships stemming from the practice of online fraud. This study used a normative juridical approach with empirical data, this study raises the questions of why teenagers engage in catfishing on social media and explains the legal complexities it entails. As a result, this research shows that 99 percent of respondents - teenagers inside and outside North Sumatra Province - lack self-awareness about catfishing issues in building online relationships. This type of fraud is often committed when registered on social media, even though this can be an entry point for catfishing and subsequent legal offenses, especially fraud as regulated in Article 378 of the Criminal Code

Impact of Fraud on Elderly Residents in Washington State

Fraud offenses are a pervasive problem for individuals throughout society, especially for elderly victims. This paper explores the impact of fraud on elderly victims in Washington state both by the number of victims and financial losses. A solution to this problem will assist law enforcement agencies, financial institutions, elder advocacy groups, and the public in understanding the impact and types of fraud utilized successfully against elderly victims. By exploring existing data sources of fraud victims, this study attempts to break down the fraud offenses to understand what types of fraud are being committed and what further research is necessary to fully understand and combat fraud offenses with elderly victims. Understanding the impact of elder fraud is difficult due to the low reporting rates, non-standardized definitions across jurisdictions, and rapidly evolving techniques used by offenders. Prior studies have been published analyzing the national impact of fraud offenses using self-reporting data collection from victims, such as the FBI’s Elder Fraud Report from the Internet Crime Complaint Center. These reports rely on victims to self-report to the agency in question and analyze trends at the national level. This study attempts to use local law enforcement data specific to Washington state to determine the number of victims and their financial losses. Overall, Washington’s elderly residents are one of the highest impacted demographics, making up 18.7% of fraud victims in 2022, with $44.8 million in losses. False pretenses, swindles, and confidence games continue to be the predominant fraud offense type in 2022 for elderly victims in Washington. While these data detail the scope of elderly fraud in Washington, further analysis and research are needed to determine why elderly victims continue to be targets of fraud and why false pretenses, swindles, and confidence games are the most successful types.

Генеза розвитку форензік-діагностики й аудиту діяльності суб’єкта господарювання

The aim of the article is to study the determinant of forensic and the genesis of the development of forensic diagnostics and audit of the activities of an economic entity. The article characterizes the scientific international and domestic achievements of scientists, the experience of practical activities of audit firms, as well as analyzes the key aspects of defining the determinant of forensic as a tool for counteracting internal corporate fraud of business entities. An analysis of different opinions and discussions of domestic and foreign scientists on the concept of forensic and its role in the field of accounting and auditing is presented. The statistics of intra-corporate fraud presented in the article requires a careful set of skills and tools to detect fraudulent activities by diagnosing the financial and economic activities of a business entity, as well as losses associated with this fraud, providing evidence in court and assisting the management of the business entity in regulating and preventing fraud. Forensic diagnostics is such a tool, which works effectively in synergy with audit. For the effective application of the determinant of «forensic diagnostics», it is necessary to have a clear understanding of the term in all its specifications, since this research topic is gaining significant relevance in the current realities of the development of the national economy. The importance of the study is determined by the fact that the evolution and development of the determinant of forensic diagnostics should take into account the trends and processes that occur in changes in approaches to the formation of the basis of forensic diagnostics, since it is a key point that forms the basis for ensuring the quality of the final result of the provision of forensic diagnostics services. The genesis and evolution of forensic diagnostics help to define the direction of development of its theory. The control system that is in place in the company is not always effective in the fight against fraud. At the present stage, as practice shows, the existing control systems are weak in detecting, countering and preventing fraudulent activities. Certain types of fraud only continue to develop owing to technological progress, and employees of various companies can both accidentally and quite purposefully become a catalyst for an attack against business. And although it is impossible to completely overcome fraud, it is vital to investigate, detect and prevent fraud. To build a stable and reliable system that would detect and prevent fraud, it is important to thoroughly study the genesis of forensic development. As a result of the study, an innovative direction of the dual combination of forensic diagnostics and audit of economic entities is allocated, which is aimed at identifying risks and consequences of actions with signs of deception, fraud and corruption.

Forensic features of methods of committing theft using methods of social engineering and information and telecommunication technologies

Many online media have recently been focusing on the topic of social engineering fraud. Business leaders, computer security experts, and lawyers, in particular, law enforcement officers, however, do not fully understand the kinds of frauds that can be conducted through or with the aid of the Internet and mobile communication, or the ramifications of such frauds for the future of e-commerce. The article will present a forensic characteristic of the system of actions for the preparation, commission and concealment of fraud using social engineering methods and information and telecommunications technologies. This paper has three principal goals. First, it will identify the principal types of social engineering frauds that law enforcement and regulatory authorities are observing. Second, it will explain the major psychological influence techniques that criminals use in conducting such frauds. Third, it will identify the patterns of preparation, commission and concealment of fraud of this type. The paper will begin by presenting a typology of the criminal and the forensic characteristics of his illegal activity. Also, will explore the principal psychological features of social engineering fraud. In conclusion, the features of the methods of committing fraud of the analyzed category of crimes will be summarized and its characteristic features will be revealed.

The Evaluation of Distributed Topic Modeling Paradigms for Detection Of Fraudulent Insurance Claims In Healthcare Forum

Healthcare fraud is the deliberate misrepresentation of the healthcare industry for the purpose of obtaining unjustified financial gain. There are many different types of healthcare fraud, which can influence patients, healthcare professionals, insurers, and government programmes, such as Billing Fraud, Kickbacks and Bribes, Prescription Fraud, False Claims, Provider Licensing Fraud etc...Healthcare insurance fraud is a severe problem that has an impact on everyone's access to affordable healthcare. Topic modelling can play a role in addressing healthcare insurance fraud by assisting in the detection, analysis, and prevention of fraudulent activities. Overall, the public benefits from healthcare insurance fraud detection because it supports equitable, open, and effective healthcare systems.

The cyber-industrialization of catfishing and romance fraud

We examine a new form of online fraud, which we refer to as Intimacy Manipulated Fraud Industrialization (IMFI). This type of fraud bears a strong resemblance to traditional online romance fraud and catfishing, but is “industrialized” through enterprise business practices, software platforms, and customer service processes. To gain a better understanding of this operation, we conducted an inductive analysis of publicly available testimonial and review data provided by current and prior employees of a specific company in the online customer service contract space. Companies hire individuals online to work as “chat moderators” or “customer service providers” who are told that their task is to advance engagement on social media platforms. In fact, they are being recruited as “sexting” workers, paid on a per-text basis to engage in intimate chatting with clients who believe they're interacting with individuals of the opposite gender on a dating site. The process is mediated via client management processes that monitor employee productivity and monetize all interactions between “clients” and “workers.” The company executes these processes with great efficiency by algorithmically assigning multiple workers to individual clients and assembling background files on clients in real time. We find that workers serve as both exploiters of their clients as well as victims of the company they work for. The implications of our study could significantly impact how we address AI-generated online fraud in the future, shedding light on the complex dynamics at play within these fraudulent enterprises.

“Screaming into the Void”: Canadians’ Experiences Reporting Identity Theft

More victims of identity theft report to private institutions, such as credit card companies and banks, than to law enforcement. Internationally, fraud victims have experienced difficulty receiving assistance from institutions, yet little research has examined the outcomes of identity theft and fraud victims in North America. This article presents findings about Canadian victims’ experiences reporting identity theft, drawn from 20 interviews with victims of identity theft in Ontario. Although some victims had positive experiences with institutions and were assisted promptly, many were let down: Some had to hound for help or were transferred repeatedly, while others felt no closure or that the process of reporting was unclear. Moreover, victims’ experiences varied even when characteristics of the identity theft incidents appeared similar, such as the type of fraud experienced and the number of accounts misused. This article closes by discussing the implications of these findings in the context of victim assistance.