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Journal articles on the topic 'Fraud'
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Overvold, Gary E., and Ingrid G. Farreras. "Review: Freud as Fraud." Theory & Psychology 19, no. 3 (June 2009): 439–41. http://dx.doi.org/10.1177/0959354309104219.
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Kurzweil, Edith. "Did freud commit fraud?" Society 31, no. 3 (March 1994): 34–39. http://dx.doi.org/10.1007/bf02693228.
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Bartulović, Marijana, Dijana Perkušić, and Ivan Kovačević. "Differences in business fraud between state-owned and private companies: case of Croatia." Financial Internet Quarterly 19, no. 4 (December 1, 2023): 1–8. http://dx.doi.org/10.2478/fiqf-2023-0023.
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Abstract Fraud presents a serious problem and arising issue for all of society at national and global levels. According to global fraud research conducted by the Association of Certified Fraud Examiners, it is estimated that the average company loses about 5% of its annual revenue due to different types of business fraud. Total estimated annual fraud losses according to global ACFE research reaches about 4.7 trillion dollars. Business frauds also present an important issue for the Croatian economy, business community and society as a whole. Thereby, considerable attention should be given to this issue with the aim of raising awareness throughout society on fraud and its negative and destructive impact on all of society. The main purpose of this paper is to examine differences in fraud characteristics between state-owned and private companies in the Republic of Croatia. Research was based on data on business frauds obtained by the Association of Certified Fraud Examiners Croatia which included 124 respondents. Data were related to frauds that occurred in Croatian companies in 2021 and 2020. In this paper we focused on fraud characteristics such as fraud loss, type of fraud, fraud duration and methods of fraud detection in order to determine whether fraud in privately owned companies differs significantly from fraud in state-owned companies. Research results revealed how differences in fraud characteristics among privately and state-owned companies exist. Based on a sample of Croatian companies that were victims of fraud, it is noted how fraud in state-owned companies lasts longer and creates greater loses in comparison to fraud in private owned companies. Moreover, data related to estimated fraud loss and fraud duration were statistically significant in terms of differentiating these two groups of companies. Based on data on discriminatory variables a logistic regression model correctly classified 78.46% of companies in the group of companies that are privately or state-owned.
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Hariawan, I. Made Hangga, Ni Komang Sumadi, and Ni Wayan Alit Erlinawati. "PENGARUH KOMPETENSI SUMBER DAYA MANUSIA, WHISTLEBLOWING SYSTEM, DAN MORALITAS INDIVIDU TERHADAP PENCEGAHAN KECURANGAN (FRAUD) DALAM PENGELOLAAN KEUANGAN DESA." Hita Akuntansi dan Keuangan 1, no. 1 (July 13, 2020): 586–618. http://dx.doi.org/10.32795/hak.v1i1.791.
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Prevention of fraud (fraudi) is an act or an effort to prevent or detain a person from not doing an act of fraud which is found to be detrimental. This study aims to determine the effect of competence in human resources, whistleblowingi systemi and individual morality in the face of preventive fraud (fraudi) in managing the financial management of Desai in Desai in Klungkung District. This research was conducted in all Desai offices in Klungkung District. With a total sample of 87 Desai apparatus, the sampling method used was purposive sampling. Data analysis techniques used in this research are Descriptive Statistics, Validity Test, Reliability Test, Classical Assumption Test, Multiple Linear Regression, Determination Coefficient, F Test and T Test. The results of the study show that the competence of human resources does not affect the prevention of fraud (fraudi). Whistleblowingi systemi positively influences the prevention of fraud (fraudi). Individual morality has a positive effect on preventing fraud (fraudi).
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Beasley, Mark S., Joseph V. Carcello, Dana R. Hermanson, and Paul D. Lapides. "Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms." Accounting Horizons 14, no. 4 (December 1, 2000): 441–54. http://dx.doi.org/10.2308/acch.2000.14.4.441.
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This paper provides insight into financial statement fraud instances investigated during the late 1980s through the 1990s within three volatile industries—technology, health care, and financial services—and highlights important corporate governance differences between fraud companies and no-fraud benchmarks on an industry-by-industry basis. The fraud techniques used vary substantially across industries, with revenue frauds most common in technology companies and asset frauds and misappropriations most common in financial-services firms. For each of these three industries, the sample fraud companies have very weak governance mechanisms relative to no-fraud industry benchmarks. Consistent with prior research, the fraud companies in the technology and financial-services industries have fewer audit committees, while fraud companies in all three industries have less independent audit committees and less independent boards. In addition, this study provides initial evidence that the fraud companies in the technology and health-care industries have fewer audit committee meetings, and fraud companies in all three industries have less internal audit support. This study of more current financial statement fraud instances contributes by updating our understanding of fraud techniques and risk factors in three key industries. Auditors should consider the industry context as they evaluate the risk of financial fraud, and they should compare clients' governance mechanisms to relevant no-fraud industry benchmarks.
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Venkata Suryanarayana, S., G. N. Balaji, and G. Venkateswara Rao. "Machine Learning Approaches for Credit Card Fraud Detection." International Journal of Engineering & Technology 7, no. 2 (June 5, 2018): 917. http://dx.doi.org/10.14419/ijet.v7i2.9356.
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With the extensive use of credit cards, fraud appears as a major issue in the credit card business. It is hard to have some figures on the impact of fraud, since companies and banks do not like to disclose the amount of losses due to frauds. At the same time, public data are scarcely available for confidentiality issues, leaving unanswered many questions about what is the best strategy. Another problem in credit-card fraud loss estimation is that we can measure the loss of only those frauds that have been detected, and it is not possible to assess the size of unreported/undetected frauds. Fraud patterns are changing rapidly where fraud detection needs to be re-evaluated from a reactive to a proactive approach. In recent years, machine learning has gained lot of popularity in image analysis, natural language processing and speech recognition. In this regard, implementation of efficient fraud detection algorithms using machine-learning techniques is key for reducing these losses, and to assist fraud investigators. In this paper logistic regression, based machine learning approach is utilized to detect credit card fraud. The results show logistic regression based approaches outperforms with the highest accuracy and it can be effectively used for fraud investigators.
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Fleming, A. Scott, Dana R. Hermanson, Mary-Jo Kranacher, and Richard A. Riley. "Financial Reporting Fraud: Public and Private Companies." Journal of Forensic Accounting Research 1, no. 1 (December 1, 2016): A27—A41. http://dx.doi.org/10.2308/jfar-51475.
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ABSTRACT This study uses survey data gathered by the Association of Certified Fraud Examiners (ACFE) and provided to the Institute for Fraud Prevention (IFP) to examine differences in the profile of financial reporting fraud (FRF) between private companies and public companies. Although private companies represent a significant portion of the economy, largely due to lack of data on these companies, most research on FRF examines only public companies. The primary objective of this study is to determine how private company FRF is different from FRF in public companies. Our multivariate tests reveal that public companies have stronger anti-fraud environments, are more likely to have frauds that involve timing differences, tend to experience larger frauds, have frauds that involve a larger number of perpetrators, and are less likely to have frauds that are discovered by accident. Overall, it appears that the stronger anti-fraud environment in public companies leads public company FRF perpetrators to use less obvious fraud methods (i.e., timing differences) and to involve larger fraud teams to circumvent the controls. These public company frauds are larger than in private companies, and their larger size may make them more likely to be detected through formal means, rather than by accident. Based on the results, we encourage auditors and others to be particularly attuned to the unique risks of the public versus private setting.
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Levi, Michael. "Organized fraud and organizing frauds." Criminology & Criminal Justice 8, no. 4 (November 2008): 389–419. http://dx.doi.org/10.1177/1748895808096470.
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Godana, Hillary, Samson Wokabi Mwangi, and Panuel Mwaeke. "Security Managers’ Perspectives on Challenges Facing Commercial Banks in Preventing Frauds in Nairobi City County, Kenya." Advances in Social Sciences Research Journal 9, no. 12 (December 11, 2022): 1–12. http://dx.doi.org/10.14738/assrj.912.13539.
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This paper uses data collected for an MA Thesis on Security Managers’ perspectives on challenges facing Commercial Banks in Preventing Frauds in Nairobi County, Kenya. The study was motivated by continued rise of frauds in commercial banks in the county, despite the extensive mitigation measures put in place to deter frauds. The study established the nature of frauds prevalent in Kenya commercial banks in Nairobi County, assessed the determinants of fraud in Kenya commercial banks, determined Bank Security Managers Capacity in fraud prevention, and finally examined Security Managers perceptions on the relationship between the existing preventive measures and emerging Bank fraud trends in Nairobi County, Kenya. The study was grounded by the Fraud Triangle concept and adopted a case study qualitative design. The main method of data collection was the interview. The study comprises of 50 respondents: 39 main respondents and 11 Key Informants. The census sampling Method was used to select respondents for the study. Data was transcribed and the transcriptions coded using NVIVO software. The study established three major types of frauds; Management frauds, Non-Management Frauds and Third Party Frauds, all said to be on an increase trend. According to this study fraud rates are higher at Nairobi County (90%), than at other counties (70%). Mobile and Internet banking frauds were found to be the new threats challenging commercial banks because by their very nature because of technological sophistication, were committed from geographical location including outside the country. The study established two major determinants of frauds; Fraudsters Perspectives and institutional related factors. Major fraudster’s perspectives include; condition under which people can rationalize their prospective crimes, opportunities to commit crimes, perceived suitability of targets for fraud, technical ability of the fraudster, the possibility and likelihood of the fraud being discovered and the nature of consequences. Institutional factors that influence fraud prevalence include; weak accounting and control systems, and ineffective internal audits. According to the study, technological sophistication has outsmarted many security managers in the banking sector, because of their technological skills gaps in Fraud forensics. Finally, the study established the relationship between existing preventive measures and emerging Bank fraud trends in Nairobi County. Major policy recommendations suggested to cut frauds at the nib include; benchmarking for best internationally recognized standards such as carrying out expected and unexpected audits, enforced internal controls, regular training of security managers, and review of commercial banks organogram that will place security managers at a position to police frauds perpetrated by management.
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Nyoman Ayu Suryandari, Ni, I. Ketut Yadnyana, Dodik Ariyanto, and Ni Made Adi Erawati. "Determinant of fraudulent behavior in the Indonesian rural bank sector using the fraud hexagon perspective." Banks and Bank Systems 18, no. 4 (November 22, 2023): 181–94. http://dx.doi.org/10.21511/bbs.18(4).2023.16.
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Asia Pacific is the region with the highest number of losses in the world. While Indonesia ranks fourth in the number of frauds, it has the highest increase in frauds based on the CPI index. This study aims to examine employee fraud triggered by the six components of the fraud hexagon. This study tries to develop the hexagon fraud element by adding power distance elements and using ethical values as a moderating variable. This study conducted a survey of 351 respondents. Using a purposive sampling method, the heads of funds, heads of credit, heads of treasurers and heads of accountants were selected as respondents in 128 rural banks in Bali. PLS displays an adjusted R2 value of 0.331. Not all elements of the fraud hexagon are proven to influence fraud. Only pressure, opportunity, rationalization, and ego affect employees in committing fraud. Meanwhile, power distance as an additional element of the fraud hexagon can increase fraud. Ethical values can become an anti-fraud strategy in reducing employee pressure and ego in committing fraud. The results of this study will provide input for rural bank managers to anticipate factors that increase employee fraud and increase the role of ethical values in suppressing employees’ desire to commit fraud.
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Stroebe, Wolfgang, Tom Postmes, and Russell Spears. "Scientific Misconduct and the Myth of Self-Correction in Science." Perspectives on Psychological Science 7, no. 6 (November 2012): 670–88. http://dx.doi.org/10.1177/1745691612460687.
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The recent Stapel fraud case came as a shattering blow to the scientific community of psychologists and damaged both their image in the media and their collective self-esteem. The field responded with suggestions of how fraud could be prevented. However, the Stapel fraud is only one among many cases. Before basing recommendations on one case, it would be informative to study other cases to assess how these frauds were discovered. The authors analyze a convenience sample of fraud cases to see whether (social) psychology is more susceptible to fraud than other disciplines. They also evaluate whether the peer review process and replications work well in practice to detect fraud. There is no evidence that psychology is more vulnerable to fraud than the biomedical sciences, and most frauds are detected through information from whistleblowers with inside information. On the basis of this analysis, the authors suggest a number of strategies that might reduce the risk of scientific fraud.
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Banu, Muskan, and Prof Kavitha G. "Credit Card Fraud Detection Using Machine Learning Algorithms." International Journal for Research in Applied Science and Engineering Technology 10, no. 10 (October 31, 2022): 1018–23. http://dx.doi.org/10.22214/ijraset.2022.47127.
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Abstract: Credit Card Fraud can be defined as a case where a person uses someone else’s credit card for personal reasons while the owner and the card-issuing authorities are unawareof the fact that the card is being used. Credit card frauds are easy and friendly targets. E-commerce and many other online sites have increased the online payment modes, increasing the risk for online frauds. In the era of digitalization, the need to identify credit card frauds is necessary. Fraud detection involves monitoring and analyzing the behaviour of various users to estimate, detect or avoid undesirable behaviour. To identify credit card fraud detection effectively, we need to understand the various technologies, algorithms and types involved in detecting credit card frauds. The algorithm can differentiate transactions which are fraudulent or not. To find fraud, we need to pass dataset and knowledge of the fraudulenttransaction. Algorithms analyze the dataset and classify all transactions. Fraud detection involves monitoring the activitiesof populations of users to estimate, perceive or avoidobjectionable behaviour, which consist of fraud, intrusion, and defaulting. Machine learning algorithms are employed to analyse all the authorized transactions and report the suspicious ones. We have taken an imbalanced dataset of transactions to detect the frauds
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Lee, Jung-won, Jong-hoon Eom, Ta-hum Park, and Sung-ho Kim. "Study on Fraud and SIM Box Fraud Detection Method in VoIP Networks." Journal of Korean Institute of Communications and Information Sciences 40, no. 10 (October 31, 2015): 1994–2005. http://dx.doi.org/10.7840/kics.2015.40.10.1994.
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Kramer, Bonita. "Trust, but verify: fraud in small businesses." Journal of Small Business and Enterprise Development 22, no. 1 (February 16, 2015): 4–20. http://dx.doi.org/10.1108/jsbed-08-2012-0097.
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Purpose – The purpose of this paper is to raise awareness about internal fraud in small businesses among small business owners, managers, and consultants. Design/methodology/approach – Recent statistics from international fraud surveys are presented, and the theory of why people commit fraud is described. The most common internal fraud schemes as identified in the international fraud surveys are explained, as well as some of the related red flags and preventative measures. Examples of actual internal frauds perpetrated in small businesses are discussed. Findings – This paper summarizes pertinent facts that repeatedly show small businesses are most vulnerable to fraud and suffer a disproportionate median loss when compared to larger businesses. External audits by Certified Public Accountants cannot be relied upon to detect fraud. Owners, managers, and advisors are strongly encouraged to have knowledge of how fraud can affect their organizations in order to prevent or detect fraud and avoid the devastating effect it can have on the small business’s viability. Practical implications – Fraud knowledge can help owners, managers, and advisors prevent small businesses from falling victim to fraud. Originality/value – This paper addresses a critical issue to small businesses, but has so far been largely neglected in the literature. While large financial statement frauds receive widespread publicity, they are relatively uncommon compared to asset misappropriation fraud schemes suffered by small businesses.
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Kursaev, A. V. "Price Fraud." Pravo istoriya i sovremennost 6, no. 1 (2022): 061–74. http://dx.doi.org/10.17277/pravo.2022.01.pp.061-074.
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Questions related to the ways of committing fraud are investigated. It is proved that one of the frauds is price fraud. The distinguishing criteria are substantiated, in the presence of which the overpricing can be qualified as a fraudulent deception. The purpose of the article is to analyze the features of committing fraud associated with price fraud. Examples of qualification of overpricing as price fraud are given. The expansion of the scope of this fraud in the modern economy is proved. The conclusion is made about the conditionality of highlighting deception in price as a method of committing fraud, since such deception has a number of specific features, which corresponds to the necessary criteria for its separate selection and study in the doctrine of criminal law.
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Mackevičius, Jonas, and Lukas Giriūnas. "TRANSFORMATIONAL RESEARCH OF THE FRAUD TRIANGLE." Ekonomika 92, no. 4 (January 1, 2013): 150–63. http://dx.doi.org/10.15388/ekon.2013.0.2336.
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Abstract. Fraud is one of the most negative factors of society. Because of frauds, some companies experience many financial and even business continuity problems. The article analyses the theory of the fraud triangle and its transformation into a square. Their various elements – motives, possibilities, pressure, rationalisation, incentive and others – suggested by different authors are presented. The article provides a theoretical analysis of fraud scales and their elements: motives, conditions, possibilities, and performance.Key words: fraud triangle, motives for fraud, fraud scales
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Tseng, Lu-Ming. "Customer insurance frauds: the influence of fraud type, moral intensity and fairness perception." Managerial Finance 45, no. 3 (March 11, 2019): 452–67. http://dx.doi.org/10.1108/mf-04-2018-0162.
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Purpose The purpose of this paper is to examine customers’ ethical attitudes (EA) and intentions toward two types of insurance frauds. This study proposes that the factors, such as fraud types (i.e. opportunistic and planned insurance fraud), moral intensity and fairness perception (FP), can affect the customers’ acceptance of the insurance frauds. Design/methodology/approach To test the research hypotheses of this study, Taiwanese insurance customers are invited in the empirical investigation, and a scenario-based questionnaire is used to collect the data. The hypotheses of this study are tested by using a partial least squares regression. Findings The results show that moral intensity constructs and FP significantly relate to the respondents’ acceptance of insurance frauds, while fraud types also have significant impacts on the respondents’ perceptions of moral intensity and fairness. Originality/value There is no research which has examined the relationships among fraud types, moral intensity, FP, demographic variables and customers’ EA and intentions toward insurance frauds. Understanding the relationships among these variables could provide implications for those involved in the practice of anti-fraud programs.
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Weirich, Thomas R., and Natalie Tatiana Churyk. "AIM Corporation: A Business Fraud Case Study." Journal of Forensic Accounting Research 3, no. 1 (August 14, 2018): A37—A51. http://dx.doi.org/10.2308/jfar-52124.
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ABSTRACT The Association of Certified Fraud Examiners (2016) indicates that asset misappropriation is the most common form of occupational fraud. Based upon a real company, this case contains six frauds: collusions, commissions, fictitious sales, rebates, refunds, and write-offs. It also includes several asset misappropriation (e.g., theft of cash, misuse of inventory, and fraudulent reimbursement) schemes. Furthermore, four of the six frauds are not found in other published case studies. The case seeks to enhance learning by having students (1) examine multiple fraudulent schemes within a single company, (2) identify frauds after examining firm procedures and documents, (3) suggest applicable fraud protection procedures, (4) identify internal control weaknesses, and (5) apply the fraud triangle. Undergraduate and graduate students from two universities performed well on the case.
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Julian, Lufti, Razana Juhaida Johari, Jamaliah Said, and Ludovicus Sensi Wondabio. "Fraud risk judgment measurement scale development." Journal of Governance and Regulation 11, no. 1, special issue (2022): 303–11. http://dx.doi.org/10.22495/jgrv11i1siart10.
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Recently, many financial scandals and frauds have been published in mass media. It has resulted in ruining the public trust in the internal auditor profession as the third line of defense since the public perceived frauds detection and prevention as the internal auditors’ responsibility (DeZoort & Harrison, 2018). The internal auditors’ fraud risk judgment performance has been questioned. There are many scales to measure fraud risk judgment; however, they are mostly related to financial-statement-related frauds with external auditors as the targeted respondents and still lack those to measure fraud risk judgment of internal auditors. This paper aims to propose the scale for measuring the performance of internal auditors’ fraud risk judgment. Since there are many internal auditors without accounting background, the fraud case should be developed to be more general, instead of financial-statement-related frauds. The study followed the best practice step by step in developing a scale proposed by Boateng, Neilands, Frongillo, Melgar-Quiñonez, and Young (2018). It involved 5 experts in developing and validating the items, 106 respondents in the exploratory factor analysis (EFA) and 202 respondents in the confirmatory factor analysis (CFA). All the required indicators in the steps were acceptable; therefore, we can conclude that the scale is valid and reliable. The scale was developed based on the fraud triangle theory; hopefully, it can contribute to providing alternative fraud risk judgment measurement for internal auditors.
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Singh, Ajeet, and Anurag Jain. "An Empirical Study of AML Approach for Credit Card Fraud Detection–Financial Transactions." International Journal of Computers Communications & Control 14, no. 6 (November 27, 2019): 670–90. http://dx.doi.org/10.15837/ijccc.2019.6.3498.
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Credit card fraud is one of the flip sides of the digital world, where transactions are made without the knowledge of the genuine user. Based on the study of various papers published between 1994 and 2018 on credit card fraud, the following objectives are achieved: the various types of credit card frauds has identified and to detect automatically these frauds, an adaptive machine learning techniques (AMLTs) has studied and also their pros and cons has summarized. The various dataset are used in the literature has studied and categorized into the real and synthesized datasets.The performance matrices and evaluation criteria have summarized which has used to evaluate the fraud detection system.This study has also covered the deep analysis and comparison of the performance (i.e sensitivity, specificity, and accuracy) of existing machine learning techniques in the credit card fraud detection area.The findings of this study clearly show that supervised learning, card-not-present fraud, skimming fraud, and website cloning method has been used more frequently.This Study helps to new researchers by discussing the limitation of existing fraud detection techniques and providing helpful directions of research in the credit card fraud detection field.
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Dimitrijević, Dragomir, and Dejan Jovanović. "Economic Motives and Willingness of Young People to Participate in Fraud." Naše gospodarstvo/Our economy 68, no. 3 (September 1, 2022): 18–27. http://dx.doi.org/10.2478/ngoe-2022-0015.
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Abstract Fraud is linked to economic and financial pressures that force people to commit it. Any fraud, regardless of the gender and age of the fraud perpetrators, inevitably leaves a short-term or long-term negative mark on society’s economy. Many financial frauds in the past (Enron, WorldCom, Parmalat) have left profound negative consequences on global financial markets. Such “financial strikes” on the financial markets led to financial losses of many companies (not only those in which frauds were committed), the dismissal of many workers, and even the bankruptcy of companies. Successful detection and prevention of fraud imply the harmonious and efficient operation of several factors. One of them understands people’s attitudes towards fraud. It is necessary to understand what motivates an individual to commit fraud and the conditions under which someone would commit fraud. Plenty of resources and time have been invested in understanding the motives for adult fraud, i.e., mature people. Experience has shown that it is much more challenging to educate people of that era about the harmful effects of fraud and thus convince them not to commit fraud. For these reasons, the subject of this paper is the consideration of the attitudes of the younger population towards fraud in Serbia. More precisely, the paper discusses the attitudes of young people aged 18 to 30 regarding motives, pressures, and opportunities to commit fraud, participate in corruption, or offer bribes. The main objective is to indicate the tendency of young people to participate in fraud and examine whether respondents’ gender influences their willingness to participate in fraud. The research results suggest that, according to young people, the main motive why someone would participate in fraud is financial gain and that young people would participate in fraud only if they could get medical intervention sooner. They also believe that fraud is most prevalent in public administration and that men are more prone to fraud than women, but that the influence of gender is very small.
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Sandhu, Namrata. "Red flag behaviors in financial services frauds: a mixed-methods study." Journal of Financial Regulation and Compliance 30, no. 2 (October 27, 2021): 167–95. http://dx.doi.org/10.1108/jfrc-01-2021-0005.
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Purpose This study aims to enlist the red flag behaviors exhibited in financial services frauds. Design/methodology/approach A pluralistic mixed methodology was adopted in this study. Data collected via semi-structured interviews were coded, quantified and subjected to descriptive analysis to identify the most frequently exhibited red flag behaviors in financial services frauds. The relative risk of exhibition of the identified red flag behaviors was assessed by intuitively comparing the red flag behaviors identified in financial services frauds (experimental group, n = 24) with the red flag behaviors identified in a heterogeneous control sample of non-financial services frauds (control group, n = 28). Findings This study identifies six red flag behaviors likely to be more frequently exhibited in financial services frauds than in non-financial services frauds. Practical implications Results of this study can be used to develop a typical behavioral profile of a financial services fraud perpetrator. Active communication of this profile in fraud awareness training can help make fraud conspicuous in the financial services industry. Originality/value This study is unique because human behavior as a possible fraud indicator is an under-researched area. Further, this study examines first level of evidence and attempts an ex-post analysis of actual red flag behaviors exhibited in acknowledged fraud cases in which the perpetrator/perpetrators has/have been clearly identified.
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Manyo, Takon Samuel, Mboto Helen Walter, Obo Ekpenyong Bassey, Ogar Godwin Wonah, Bekom A. Omang, Nkamare Stephen Ekpo, and Emefiele Charles Chike. "Effect of Fraud on Commercial Banks’ Performance in Nigeria." Frontiers in Management Science 2, no. 2 (April 2023): 69–78. http://dx.doi.org/10.56397/fms.2023.04.08.
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The study examined the effect of fraud on bank performance in Nigeria. The specific objectives were to: investigate the relationship between the number of frauds and bank performance in Nigeria, assess the relationship between the amounts lost to frauds and bank performance in Nigeria and to examine the relationship between the numbers of staff involved in fraud loses and bank performance in Nigeria. The study utilizes secondary sources of data extracted from the Nigerian Deposit Insurance Corporation (NDIC) Annual Report and CBN Statistical Bulletin from 1994 to 2020. Statistical methods such as descriptive analysis, Pearson correlation and OLS regression techniques were employed in the evaluation of the data. The result of the hypotheses revealed number of fraud cases as well as the total amount lost to fraud had a positive and significant impact on bank performance while the total number of staff involved in fraud was found to be negative and significant on deposit money banks performance in Nigeria. The study recommended that CBN and NDIC should encourage DMBs to always report cases of fraud, this can be done through creation of a fraud “hotline” where the public can call to complain or report fraud cases with appropriate rewards that will incite more compliance. Management of banks should train and retrain staff of Nigerian banks in fraud prevention and control. Such training should include a comprehensive review of legal and regulatory guidelines that will limit fraud activities.
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Bala, Bala Santhosh, Pasupula Praveen Yadav, and Mogathala Raghavendra Reddy. "An intelligent approach to detect and predict online fraud transaction using XGBoost algorithm." Indonesian Journal of Electrical Engineering and Computer Science 35, no. 3 (September 1, 2024): 1491. http://dx.doi.org/10.11591/ijeecs.v35.i3.pp1491-1498.
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The most popular payment method in recent years is the credit card. Due to the E-commerce industry’s explosive growth, the usage of credit cards for online purchases have been greatly increased as a result frauds has increased. Banks have been facing challenges to detect the credit card system fraud in recent years. Credit card fraud happens when the card was stolen for any unauthorized purposes or if the fraudster utilizes the credit card information for his own use. In order to prevent credit card fraud, it is essential to build detection measures. While detecting credit card theft with machine learning (ML), the features of credit card frauds play an important and they must be carefully selected. A fraud detection algorithm must be created in order to correctly locate and stop fraudulent activity as technology advances along with the amount of fraud cases. ML methods are essential for identifying fraudulent transactions. The implementation of fraud detection models is particularly difficult because of the sensitive nature of the data, the unbalanced class distributions, and the lack of data. In this work, an intelligent approach to detect and predict online fraud transaction using extreme gradient boosting (XGBoost) algorithm is described. The XGBoost model predicts whether a transaction is fraud or not. This model will achieve better performance interarm of recall, precision, accuracy and F1-score for credit card fraud detection.
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Tomaš, Darko, and Igor Todorović. "Modelling Fraud Prevention Process **." Journal of Corporate Governance, Insurance, and Risk Management 3, no. 2 (August 30, 2016): 76–87. http://dx.doi.org/10.56578/jcgirm030205.
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Fraud is global social problem and they occur in all activities. The term fraud implies corruption, misappropriation of assets and fraudulent financial reporting. People that commit fraud are inside and outside of organisation. Factors that affect fraud doing are: motive, opportunity, ability and justification. In our region, it can be said that fraud is not individual problem but it’s a case of systematic fraud, especially in public sector by creating monopoly of private over public sector. Costs related to fraud will be difficult to objectively assess. Everyone is sensitive to health care related frauds, from patients and doctors to whole society. For battle against fraud requires political will, effective legislative framework and anti-fraud strategy. Every strategy has to begin with prevention process. Paper presents model of fraud prevention process. Model is based on increasing awareness of all participants about the importance of battle against the fraud, accepting anti-fraud policies and zero fraud toleration, establishing channels for reporting fraud, as well as defining responsibilities of internal audit in evaluation of internal controls, fraud risk assessment, corporate governance and providing recommendations for process improvement.
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Starostenko, Nina I. "Forensic features of methods of committing theft using methods of social engineering and information and telecommunication technologies." Vestnik of Saint Petersburg University. Law 15, no. 1 (2024): 152–70. http://dx.doi.org/10.21638/spbu14.2024.110.
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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.
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Brucker, William G., and James E. Rebele. "Something Was Rotten At Garden Fresh: Tax Evasion And Accounting Fraud At A Produce Wholesaler." Journal of Business Case Studies (JBCS) 10, no. 3 (July 1, 2014): 303. http://dx.doi.org/10.19030/jbcs.v10i3.8718.
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Most fraud cases prepared for use in auditing and fraud examination courses involve theft-of-asset or financial statement misstatement types of frauds. Based on an actual case, we present a situation where the owner of a wholesale produce business, Garden Fresh, adjusted accounting records to evade taxes. Changes in the produce industry were threatening Garden Freshs business, and the owner used funds generated from the tax-evasion fraud to support purchases from the companys buyers. In the end, the fraud and business could not be sustained, and Garden Fresh failed. An important learning objective of the case is to illustrate how journal entries can be used to conceal a fraud, and how understanding accounting is essential for uncovering some frauds. The Garden Fresh case has been used in an undergraduate auditing class, and assessment results indicate that the case is effective for meeting identified learning objectives. The case would also be appropriate for use in taxation, fraud examination, forensic accounting, and small business courses at both the undergraduate and graduate levels.
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Ravi, S., J. Thanga Kumar, Dr Linda Joseph, Sumanth Raju Kunjeti, Nandu Vardhan Saniboina, and Sandeel Reddy Endela. "An Unique Methodology for Credit Card Fraud Detection based on Convolutional Neural Network." Alinteri Journal of Agriculture Sciences 36, no. 1 (May 17, 2021): 277–80. http://dx.doi.org/10.47059/alinteri/v36i1/ajas21041.
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Internet based business, e-Services and numerous other web-based application have expanded the online payment modes, expanding the danger for online frauds. Expansion in fraud rates, analysts began utilizing distinctive machine learning strategies to identify and dissect frauds in online exchanges. The principle point of the paper is to plan and build up a novel fraud identification strategy for Streaming Transaction Data, with a target, to dissect the previous exchange subtleties of the clients and concentrate the personal conduct standards. This paper proposes a canny model for detecting fraud in credit card exchange datasets that are unusually imbalanced and enigmatic. The class irregularity issue is dealt with by finding lawful just as fraud exchange designs for every client by utilizing continuous itemset mining.
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Sharma, Dhanraj, and Ruchita Verma. "Reaction of Stock Price to Frauds’ Announcements: Evidence from Indian Banking Sector." Asia-Pacific Journal of Management Research and Innovation 16, no. 2 (June 2020): 157–66. http://dx.doi.org/10.1177/2319510x20930879.
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This paper is an attempt to investigate the reaction of stock price of Indian banks with respect to announcements of frauds. The Event Study Methodology is used to examine the impact of frauds’ announcements to stock price of banks which experienced fraud. The fraud cases which exceed ₹1,000 crores are considered for the period from January 2014 to December 2018. The results indicate that the fraud announcements do affect the stock price of banks which experienced fraud. In majority of cases of frauds under consideration, the study found significant abnormal loss which further supported by the results of abnormal volume ratio. The highest abnormal loss is found in the stock price of Punjab National Bank (8.74 per cent) which involves the scam committed by the Nirav Modi. Due to increased frauds in the banking sector, the confidence of the investors adversely affects which may further lead to consequences on concerned banks. In this direction, the results of the study have importance for the policy makers and regulators for analysing the behaviour of stock price with respect to the announcements of frauds in the Indian banking sector.
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Simser, Jeffrey. "Culpable insiders – the enemy within, the victim without." Journal of Financial Crime 21, no. 3 (July 1, 2014): 310–20. http://dx.doi.org/10.1108/jfc-11-2013-0068.
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Purpose – The purpose of this paper is to explore the role of the culpable insider and the predatory criminal in fraud and deception. Design/methodology/approach – Two groupings of fraud are considered in this paper. Insider fraud consists of a person within an organization misusing their position for corrupt self-dealing, asset misappropriation and financial statement fraud. Case studies are discussed, offering differing perspectives on the role of insiders. Fraudsters use technology, like malware, to take on the mantle of an insider to facilitate their larceny. This paper also looks at the role of the insider with predatory frauds. Findings – Most enterprises, be they public entities or private firms, are at risk of internal fraud. Internal financial controls are the first line of defence. In tougher economic times, when enterprises run on the tightest of margins, control mechanisms are at risk of being weakened at the altar of efficiency. Firms can also adopt cultures that deter frauds, either through policies on whistle-blowers or through simple employee screening procedures. For predatory frauds, the basic warning flag can be summed up with the cliché: if something seems too good to be true, it probably is. Originality/value – This paper synthesizes research on fraud and the role that an insider can play as well as the role of a predatory fraudster.
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Not Available, Not Available. "Fraud is fraud." International Orthopaedics 21, no. 4 (September 22, 1997): 211–12. http://dx.doi.org/10.1007/s002640050152.
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M.S, Prateeksha, B. Naga Swetha, and Manjula Patil. "CREDIT CARD FRAUD DETECTION USING MACHINE-LEARNING." International Journal of Advanced Research 11, no. 04 (April 30, 2023): 1559–63. http://dx.doi.org/10.21474/ijar01/16824.
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The recent advances of e-commerce and e-payment systems have sparked an increase in financial fraud cases such as credit card fraud. It is therefore crucial to implement mechanisms that can detect the credit card fraud. Features of credit card frauds play important role when machine learning is used for credit card fraud detection, and they must be chosen properly. This paper proposes a machine learning (ML) based credit card fraud detection engine using ML classifiers: Decision Tree (DT), Logistic Regression (LR), Artificial Neural Network (ANN). To validate the performance, the proposed credit card fraud detection engine is evaluated using a dataset generated from European cardholders. The result demonstrated that our proposed approach outperforms existing systems.
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Levy, Inna, and Pamela Kerschke-Risch. "Attitudes toward food fraud in Israel and Germany." British Food Journal 122, no. 7 (April 13, 2020): 2219–32. http://dx.doi.org/10.1108/bfj-10-2019-0785.
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PurposeThe current research focused on attitudes toward food fraud (AFF) and examined the impact of types of food fraud, gender differences, and country of residence.Design/methodology/approachA convenience sample of German (n = 151) and Israeli (n = 496) participants was recruited through an online survey. They filled out a sociodemographic questionnaire and AFF scale, which includes three subscales: organic fraud, kosher fraud, and spraying fraud.FindingsThe results indicate that there is a significant effect of type of fraud, country of residence, and gender. German participants expressed more negative attitudes toward organic food fraud and less negative attitudes toward kosher fraud than Israeli participants. Women expressed more negative attitudes toward organic and kosher food frauds than men.Originality/valueThis study offers insight into cross-cultural and gender differences in attitudes toward food fraud. The findings suggest that public attitudes toward food fraud represent not just severity of possible consequences, but also environmental and religious aspects of consumption, norms and culture.
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Hermanson, Dana R., Scot E. Justice, Sridhar Ramamoorti, and Richard A. Riley. "Unique Characteristics of Predator Frauds." Journal of Forensic Accounting Research 2, no. 1 (April 1, 2017): A31—A48. http://dx.doi.org/10.2308/jfar-51747.
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ABSTRACT Previous research has called for examination of differences in the fraud profile between “predator” fraudsters (repeat offenders) and “situational” fraudsters (first-time offenders). Using data from nearly 2,800 fraud cases included in the Association of Certified Fraud Examiners' Report to the Nations database, we identify unique characteristics of predator frauds. In the primary analysis, we find that predator fraudsters are less likely to be in leadership positions, are less educated, and tend to target smaller companies, while appearing less likely to target public companies. Predator frauds are shorter, but more costly overall, and there is some evidence that predator frauds are more likely to involve asset misappropriation or corruption. We also present exploratory analyses of “possible predators,” first-time offenders who strike the organization early in their tenure. Overall, the data suggest that predators and situational fraudsters are fundamentally different on several dimensions. Based on the results, we discuss implications related to fraud prevention and detection, as well as directions for future research.
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Hidayat, Imam. "Perencanaan Sistem Teknologi Informasi untuk Mendeteksi dan Mencegah Fraud pada Sistem Inventori." Jurnal Teknik Mesin Sinergi 7, no. 1 (May 23, 2019): 1–21. http://dx.doi.org/10.31963/sinergi.v7i1.1031.
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Dalam penelitian ini coba dikembangkan dan diterapkan suatu sistem informasi untuk mendeteksi dan mencegah terjadinya fraud pada suatu sistem inventori, yang dalam hal ini terdapat pada suatu industri pengepakan. Dalam pembentukan sistem informasi ini diterapkan langkah-langkah strategi untuk pendeteksian fraud yang terdiri atas pemahaman terhadap sistem atau unit, pengidentifikasian terhadap fraud yang mungkin terjadi, mengumpulkan gejala-gejala dari fraud dalam suatu daftar, pengumpulan data-data yang yang terkait dengan gejala fraud tersebut, dan pembuatan suatu program komputer yang merupakan hasil akhir, yang dapat menganalisis secara otomatis untuk mendeteksi terjadinya fraud tersebut. Dari penerapan program yang dibuat (secara simulasi) kepada sistem yang ada pada industri yang diuji, maka didapat beberapa gejala fraud yang terdeteksi yang dapat dianggap sebagai fraud yang berupa: (a) Perencanaan pembelian atas material yang jarang digunakan, sehingga nantinya material tersebut akan menjadi deadstock dan dijual dengan harga yang rendah, (b) Penghapusan material yang bernilai dan masih berguna, akibat adanya kesalahan pencatatan material yang sudah rusak (deadstock), (c) kesalahan pengambilan stok material, dan tidak melakukan penyesuaian terhadap arsip dari material tersebut, dan (d) Pemberian insentif yang tidak seharusnya, karena adanya kesalahan perhitungan waste. Sistem ini nantinya dapat digunakan secara periodik yang berfungsi untuk mendeteksi kesalahan-kesalahan yang merupakan gejala sebelum fraud yang dapat menimbulkan kerugian yang besar terjadi.
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Peterson, Bonita K., and Thomas H. Gibson. "Fraud Detection and Investigation: Microcomputer Consulting Services." Issues in Accounting Education 14, no. 1 (February 1, 1999): 99–115. http://dx.doi.org/10.2308/iace.1999.14.1.99.
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This nonfictional case of inventory fraud in a university setting exposes students to fraud detection and investigation. These skills are becoming increasingly important for auditors, as evidenced by the alarming rate of fraud. The accounting profession has acknowledged the seriousness of this issue with the issuance of SAS No. 82, Consideration of Fraud in a Financial Statement Audit, developed in part to improve detection of frauds by auditors. The case raises many of the fraud-related issues faced by accountants: recognizing red flags indicative of fraud; the importance of a good system of internal controls; the profile of the typical fraud perpetrator; the fine line auditors walk when investigating a fraud; the need to develop an audit team with the appropriate level of expertise which may require members from a variety of disciplines (e.g., investigative, legal and forensic areas); and the difficulty of obtaining sufficient evidence to prosecute and convict perpetrators.
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Journal, IJSREM. "Secure Scan -Analysis of Credit Card Fraud Detection Using Machine Learning." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 07, no. 11 (November 1, 2023): 1–11. http://dx.doi.org/10.55041/ijsrem27368.
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Credit Card usage has been drastically increased across the world , now people believe in going cashless and are completely dependent on online transactions .The credit card has made the digital transaction easier and nowadays credit card frauds are drastically increasing in numbers compared to earlier times . A powerful fraud detection system is required to stop these frauds . Fraud detection is the process of monitoring the transaction behaviour of a cardholder to detect whether an incoming transaction is authentic and authorised or not otherwise it will be detected as illicit .Machine learning -based fraud detection systems rely on machine learning algorithms that can be trained with historical data and can perform classification , regression or finding the patterns among the data . Keywords: Credit card machine learning , fraud detection ,historical data, algorithms.
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Sánchez Ríos, José. "Análisis de percepciones de dos grupos independientes, gerenciales no convictos y gerenciales convictos, en el delito del fraude en las variables capacidad-presión, capacidad-racionalización y capacidad-oportunidad." Oikos 20, no. 41 (July 27, 2016): 121. http://dx.doi.org/10.29344/07184670.41.956.
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RESUMENEl objetivo principal de esta investigación fue establecer si las percepciones sobre las variables capacidad-presión, capacidad-racionalización y capacidad-oportunidad, que forman parte de loselementos comunes en las teorías del fraude, pueden ser distintas en dos grupos independientes. Seutilizó una muestra de 32 gerentes no convictos por fraude ni por ningún delito y 31 convictos pordelitos relacionados al fraude en apropiación de activos. Ambos grupos respondieron a las mismaspreguntas utilizando el mismo cuestionario. Se utilizó la prueba estadística Mann-Whitney paracomparar las respuestas y demostrar que ambos grupos tienen percepciones en común según lasvariables estudiadas en la teoría de fraude. La prueba estadística finalmente identificó 17 percepcionesen común en la teoría del delito de fraude para los dos grupos independientes.Palabras clave: fraude, presión, oportunidad, racionalización, capacidad.Analysis of perceptions of two independent managementgroups convicted and un-convicted for the crime of fraud incapability-stress, capacity-rationalization and capacity-opportunity variablesABSTRACTThe main objective of this research was to determine whether the variables - pressure capability, rationalization - capacity and capacity - opportunity, part of the common elements in theories offraud, may be different in two separate groups: 32 managers not convicted of fraud or any crimeand 31convicts for crimes related to fraud and appropriation of assets. Both groups respondedto the same questions using the same questionnaire. Mann-Whitney’s statistical test was used to compare responses and show that both groups have in common perceptions according to thevariables studied in the theory of fraud. The statistical test finally identified 17 common perceptionson the theory of the crime of fraud for two independent groups.Keywords: fraud, power, opportunity, rationalization, capacity.Análise das percepções de dois grupos independentes gerenciaisnão condenados e condenados pelo crime de fraude nas variáveis capacidade-pressão, capacidade-racionalização, capacidade-oportunidadeRESUMOO principal objetivo desta pesquisa foi estabelecer se as variáveis capacidade-pressão, capacidade--racionalização e capacidade-oportunidade, as quais formam parte dos elementos comuns nas teorias do fraude, podem ser diferentes em dois grupos independentes. Utilizou-se uma amostra de doisgrupos independentes: 32 gerentes não condenados por fraude ou qualquer crime e 31convictospor crimes relacionados com a apropriação de fraude de ativos. Os dois grupos responderam àsmesmas perguntas utilizando o mesmo questionário. Se utilizou o teste estatístico Mann Whitneypara comparar as respostas e mostrar que ambos grupos têm percepções comuns de acordo comas variáveis estudadas na teoria do fraude. O teste estatístico finalmente identificou 17 percepçõescomuns sobre a teoria do crime de fraude por dois grupos independentes.Palavras-chave: fraude, pressão, oportunidade, racionalização, capacidade.
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Zulaikha, Zulaikha, Imam Ghozali, and Paulus T. Hadiprajitno. "Factors affecting the government procurement fraud: The independent auditor’s point of view." Corporate Board role duties and composition 12, no. 3 (2016): 61–68. http://dx.doi.org/10.22495/cbv12i3art7.
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The objective of this study was examining the factors affecting the government procurement fraud. Based on the fraud triangle and the theory of planned behavior, this study proposed seven hypothesis, those are tested by regression analysis. This study used primary data gathered by surveys to members of The Boards of the Republic Indonesia- Financial Auditors, who act as external auditors for the Government. They were asked to assess factors influencing the government procurement of goods and services fraud. There were 297 auditors of the Boards that participated in this survey. The result showed that the procurement frauds were influenced by the lack of procurement committee quality, the weakness of procurement control, and the intentions to engage fraud. The intentions to engage fraud were significantly influenced by the attitude toward fraud, subjective norms, and the perceived behavioral control. Furthermore, other elements of fraud triangle, the financial pressure, did not influence to the procurement fraud.
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Bhavar, Vipul, Vishakha Borkar, Tanvi Hirave, Harsh Vishwanathan, and Ranjita Asati. "Fastag Fraud Detection: A Literature Survey." International Journal for Research in Applied Science and Engineering Technology 11, no. 4 (April 30, 2023): 1524–28. http://dx.doi.org/10.22214/ijraset.2023.50285.
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Abstract: National Payments Corporation of India (NPCI) has developed the National Electronic Toll Collection (NETC) program to meet the electronic tolling requirements of the Indian market.The use of FASTag is prevalent in modern society. However, it is clear that the number of FASTag frauds in the global integration and existing protection system is constantly increasing. This is why the issue of FASTag fraud detection is very important. Various FASTag frauds occur and there is no means to detect or prevent them. Among the many frauds, we will try to reduce the fraud where drivers of heavy vehicles issue and use FASTags that are intended for light vehicles. In this way, drivers of heavy vehicles are exempted from paying the higher tolls that are set for heavy vehicles. FASTag fraud detection is used to solve this problem. The system will be able to identify the type of vehicle and the FASTag amount paid. Using this system, FASTag fraud detects if any anomaly has occurred and alerts the system accordingly
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Sandhu, Namrata. "Behavioural Red Flags of Fraud: An Ex Post Assessment of Types and Frequencies." Global Business Review 21, no. 2 (July 29, 2019): 507–25. http://dx.doi.org/10.1177/0972150919850410.
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A number of researchers and professional fraud examiners have emphasized the need for early detection of frauds. Though there are many ways in which frauds can be detected, a particularly effective and inexpensive way is to identify fraudsters by scrutinizing personnel behaviour for peculiarities typical of fraudsters. Towards this end, the present study compiles a checklist of behavioural red flags of fraud based on data collected with the help of 41 semi-structured interviews. The interviewees constitute people who have personally investigated or closely observed a fraud in the last 3 years. A mixed methods triangulation approach is used to quantify the qualitative data collected from the interviews. Data analysis reveals 16 different behavioural red flags exhibited by fraudsters. An examination of frequencies indicates that strong ambition, extended working hours, social aloofness, dissatisfaction with current job and living standard disproportionate to current means are the most frequently displayed behavioural red flags of fraud. The study also shows that fraudsters exhibit three or four behavioural red flags in a majority of cases. Implications for anti-fraud practitioners are discussed.
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Raval, Vasant. "The Disposition-Based Fraud Cycle." International Journal of Applied Behavioral Economics 2, no. 2 (April 2013): 56–76. http://dx.doi.org/10.4018/ijabe.2013040104.
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This paper reviews the disposition-based fraud cycle (DFC) primarily from the perspective of financial frauds. It suggests that fraud as a human act represents an interaction between organism’s disposition and the circumstances he faces. The DFC model which maps financial fraud as a cycle driven by desire-belief connection is contrasted with the widely accepted paradigm called the Fraud Triangle (FT). A purpose of the analysis is to identify unique fraud-risk factors visible in the DFC model. Empirical evidence from the past studies is discussed to show relevance of the DFC model, and its potential role in preventing and detecting financial fraud. Although the model is applicable to all kinds of fraudulent acts, the focus of this study is on the powerful chief executive with considerable influence within the organization she leads.
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Setiawan, Santy. "THE EFFECT OF INTERNAL CONTROL AND INDIVIDUAL MORALITY ON THE TENDENCY OF ACCOUNTING FRAUD." Asia Pacific Fraud Journal 3, no. 1 (May 22, 2018): 33. http://dx.doi.org/10.21532/apfj.001.18.03.01.04.
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Accounting fraud is a problem commonly faced by both companies and users of financial statements. Accounting fraud often occurs due to weak internal controls. In addition, accounting fraud is also influenced by one’s ethics, especially the morality of individuals to cheat. The purpose of this study is to determine the effect of internal control and individual morality on the tendency to commit accounting fraud. This research is done by using experimental method. The sample used in this research is 85 accounting students of Maranatha Christian University. The testing tool used in this study is a two-way Anova. The results show that internal control has no effect on accounting fraud, but individual morality has an effect on accounting fraud. Individual with low morality will tend to commit accounting frauds rather than those with high morality.
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Ali Momoh, Betty O. "THE NEXUS BETWEEN OUTSOURCING OF STAFF AND BANKING FRAUD IN NIGERIA." Kampala International University Interdisciplinary Journal of Humanities and Social Sciences 2, no. 2 (August 31, 2021): 283–301. http://dx.doi.org/10.59568/kijhus-2021-2-2-21.
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The study examined the nexus between outsourcing of staff and banking fraud in Nigeria. Using secondary data, percentage increase in banking fraud (PBF) to was regressed on percentage of outsourcing staff involved. The estimation of the model was based on the ordinary least squares (OLS) method after the necessary pre-testing of the annual time series data using the augmented Dickey-Fuller (ADF) and the Philips-Peron (PP) tests, taken side by side with the related descriptive statistics. The study revealed that the contribution of outsourcing staff to fraud losses was the highest compared to the other core staff. The study model, considered good for prediction (DW=1.93), revealed that seventy-seven percent of frauds are attributable to insiders and about 23% of fraud losses are attributable to non-insider related frauds and forgeries (R2=0.77). Based on the findings, it is recommended, inter alia, that the recruitment process be strengthened through a robust, ITenabled selection, referencing and. personnel lifestyle tracking system. Further, the work environment and job content must be enriched to curtail the opportunity to commit fraud presented when employees are allowed to have wholesome access to assets and information that allow them to both commit and conceal fraud.
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Nawawi, Anuar, and Ahmad Saiful Azlin Puteh Salin. "Internal control and employees’ occupational fraud on expenditure claims." Journal of Financial Crime 25, no. 3 (July 2, 2018): 891–906. http://dx.doi.org/10.1108/jfc-07-2017-0067.
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Purpose The purpose of this study is to investigate the weaknesses of internal control in expenditure claim procedure and to identify the opinions of employees regarding an occupational fraud. This study also attempts to examine the most popular occupational fraud committed by the employee and whether a company’s working environment contributed to the fraud. Design/methodology/approach A case study approach was adopted to investigate and analyse the weaknesses of the internal control and occupational fraud incidents. A mixed method of data collection, specifically, survey questionnaire and document analysis were used. Findings This study found that the internal control of the expenditure claim procedure was weak and needed improvement. This study also found that a strong internal control and a better remuneration paid to the employees could reduce the risk of the occupational fraud committed in the company. In terms of fraud types, this study discovered that claims on mileage, followed by petrol, accommodation and suppliers’ invoice were the most popular occupational frauds committed by the employees. Finally, employee dissatisfaction and poor working-environment culture influence occupational fraud’s level in the organizations. Research limitations/implications The results provide further confirmation of the fraud triangle theory on the causes of fraud, i.e. opportunity because of a weak internal control and financial pressure because of low and non-standardized salary. This study, however, was conducted only on one company. Practical implications This study provides some recommendations to overcome the weak internal control and improve employees’ satisfaction which lead to better working environment. Thus, opportunities for fraud in the company can be reduced. Originality/value This study is original, as it focusses specifically on occupational fraud which is rare in fraud literature, particularly for a study that is conducted in developing markets like Malaysia. It also has examined various related sensitive documents and reports of employee frauds that are generally difficult to be accessed by researchers.
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Nagirikandalage, Padmi, Arnaz Binsardi, and Kaouther Kooli. "Audit sampling strategies and frauds: an evidence from Africa." Managerial Auditing Journal 37, no. 1 (November 30, 2021): 170–92. http://dx.doi.org/10.1108/maj-06-2020-2695.
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Purpose This paper aims to investigate how professionals such as accountants, auditors, senior civil servants and academics perceive the use of audit sampling strategies adopted by professionals to increase detection rates of frauds and corruption within the public sector in Africa. It also examines the respondents’ perceived values regarding the reasons for committing frauds, types of fraud and corruption, as well as the aspects of audit sampling strategies to tackle frauds. Design/methodology/approach This research uses non-parametric statistics and logistic regression to analyse the respondents’ opinions regarding the state of frauds and corruption in Africa (particularly in Tunisia and non-Tunisia countries), the common factors behind people committing frauds, including the types of frauds and corruption and the respondents’ opinions on the use of audit sampling strategies (non-random and random) to examine the instances of frauds and corruption. Findings The findings indicate that most respondents prefer to use non-probabilistic audit sampling rather than more robust sampling strategies such as random sampling and systematic random sampling to detect frauds and corruption. In addition, although there are some minor statistical differences between the countries in terms of the respondents’ perceived values on skimming fraud and on the use of audit random sampling to tackle rampant corruption in Africa, the overall findings indicate that opinions do not significantly differ between the respondents from Tunisia and other countries in terms of the types of fraud, the reasons for committing fraud and the auditing sampling strategies used to investigate the frauds. Research limitations/implications This research serves as an analytical exploratory study to instigate further audit sampling research to combat rampant fraud and corruption in the public sector in Africa. Originality/value There are few or non-existent studies investigating the application of audit sampling strategies in Africa countries, particularly to examine the application of audit random sampling and audit non-random sampling strategies to detect fraudulent activities and corruption. Correspondingly, this research carries strategic implications for accountants and auditors to successfully detect fraudulent activities and corruption in Africa.
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Ismail, Bassem, and Hamidah Hamidah. "HOW CAN PSYCHOLOGY AND RELIGIOUS BELIEFS AFFECT ON FRAUD TRIANGLE?" Media Riset Akuntansi, Auditing & Informasi 19, no. 1 (April 29, 2019): 53. http://dx.doi.org/10.25105/mraai.v19i1.4093.
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<p><em>In this paper, I explore the emphasis of the fraud triangle as a salutary model for practitioner to extract fraud. This paper is anchored through psychology and religious theories, and is propped with prove from holy books. The findings point out that the Own lust “Hawa Nafsu” (HN) supporter and basic stone to control devil desire (DD) that control by humans lust that’s present new model in preventing fraud. Fraud is a manifold phenomenon, whose religious theories may not fit all the cases into fixed model. Thus, fraud tringle not adequately credible model, so antifraud practitioner should consider fraud from religious perspective. The study uses secondary sources of information get it from magazine articles, textbooks and the Internet. The discussion of the two theories contributes to understand frauds especially by legitimate accountants, auditors, fraudsters and other fraudulent entities. The study also serves as a guide to further research on fraud.</em></p>
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Chen, Clara Xiaoling, Ken T. Trotman, and Flora (Hailan) Zhou. "Nominal versus Interacting Electronic Fraud Brainstorming in Hierarchical Audit Teams." Accounting Review 90, no. 1 (July 1, 2014): 175–98. http://dx.doi.org/10.2308/accr-50855.
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ABSTRACT In this study, we examine whether interacting hierarchical teams outperform nominal hierarchical teams in electronic brainstorming. Our hierarchical audit teams were composed of 111 managers and seniors from two Big 4 accounting firms. We compare fraud brainstorming outcomes between nominal and interacting teams for two tasks of varying complexity: a simpler task of fraud risk factor identification and a more complex task of fraud hypothesis generation. We find that nominal teams generate a significantly larger number of unique fraud risk factors and fraud hypotheses than interacting teams. Nominal teams also generate higher-quality fraud hypotheses. We provide evidence that social loafing by less experienced auditors in interacting teams drives the differences between nominal and interacting teams in the fraud hypothesis generation task. In addition, less experienced auditors have less developed mental simulations for frauds in interacting teams compared to those in nominal teams. A key contribution of our study is that it identifies the underlying mechanisms of the differential fraud brainstorming outcomes between nominal and interacting teams.
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Melinda, Khairini, Ariama Susanti, Juneva Kastarina Tarigan, Deliana Deliana, and Ilham Hidayah Napitupulu. "The Role Of Internal Audit In Fraud Prevention And Disclosure : Literature Riview." Kajian Akuntansi 23, no. 1 (March 31, 2022): 50–66. http://dx.doi.org/10.29313/ka.v23i1.9400.
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This study aims to determine the effect of internal audit in preventing and disclosing fraud. The number of frauds that occur in an organization shows the need for an internal audit body in the company so that it can reduce or even eliminate fraud that occurs. This literature review is a study of the role of internal audit in preventing and disclosing fraud which aims to find out the variables in internal audit for preventing and disclosing fraud based onprevious studies, so there is still a lotof potential forfurthermodification/development. Of the ten studies included in this literature review, there are differences in research results. Eight studies state that internal audit has a significant effect on preventing and disclosing fraud, but two articles state that internal audit does not have a significant effect on preventing and disclosing fraud.
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Amasiatu, Chioma Vivian, and Mahmood Hussain Shah. "First party fraud management: framework for the retail industry." International Journal of Retail & Distribution Management 46, no. 4 (April 9, 2018): 350–63. http://dx.doi.org/10.1108/ijrdm-10-2016-0185.
Full textAbstract:
Purpose First party fraud in which consumers commit fraud against retailers is a growing problem. Research in this area is very limited which means that there is almost no guidance available to mitigate this problem. Existing fraud management frameworks focus on the management of other fraud, such as identity theft or employee instigated fraud. Due to the different nature of these frauds, these frameworks do not adequately address first party fraud. Therefore, the purpose of this paper is to propose an adapted version of the fraud management lifecycle framework which is specific to first party fraud management. Design/methodology/approach The authors conducted a systematic literature review and compared/contrasted a number of existing fraud management frameworks in related domains to see which one would be most suitable for first party fraud management. Findings The authors found Wilhelm’s fraud management framework the most promising for adaptation and application to the first party fraud context. By modifying an existing framework according to the contextual requirements, the authors make the framework much more relevant to first party fraud management. Practical implications The framework could help retail managers better understand and manage this growing business problem and open new streams for further research. Originality/value This research also makes an important contribution by proposing a framework and by helping bridge a glaring and problematic gap in existing literature and opening up new streams of research.