What external control mechanisms are most effective in detecting corporate fraud? To address this question we study in depth all reported cases of corporate fraud in companies with more than 750 million dollars in assets between 1996 and 2004. We find that fraud detection does not rely on one single mechanism, but on a wide range of, often improbable, actors. Only 6% of the frauds are revealed ...

This paper explores the effectiveness of Data Mining (DM) classification techniques in detecting firms that issue fraudulent financial statements (FFS) and deals with the identification of factors associated to FFS. In accomplishing the task of management fraud detection, auditors could be facilitated in their work by using Data Mining techniques. This study investigates the usefulness of Decis...

The detection of ATM fraud is a key concern for both financial institutes and bank customers but also for ATM suppliers. This paper deals with the algorithmic learning of an ATM’s behavior model given the data stream of status information produced by standard mechatronic devices embedded in modern ATMs. During operation, the observed status information is compared with the learned reference mod...

Everybody can recall some kind of fraud that has been all over the news. If it were Enron, WorldCom, Lernout & Hauspie, Ahold, Société Générale or another case does not matter. Fact is that fraud has become a serious part of our life and hence a serious cost to our economy. Several studies on this phenomenon report shocking numbers: forty-three percent of companies worldwide have fallen victim ...

This paper uses Artificial Neural Networks to develop a model for detecting management fraud. Although similar to the more widely investigated area of bankruptcy prediction, research has been minimal. To increase the body of knowledge on this subject, we offer an in-depth examination of important publicly available predictors of fraudulent financial statements. We test the value of these sugges...

insurance industry experts believe that fraud is a destructive disaster in the insurance industry. over the years, many methods have been used in the literature for fraud detection, one of which is expert systems. fraud detection expert systems are based on the knowledge of experts in the field of insurance identify fraud. judgment of experts is mostly based on evidence, documents, qualitative ...

Identifying Financial Statement Fraud (FSF) events is very crucial in text mining. The researcher’s community mostly utilized the data mining method for detecting FSF. In this direction, quantitative has by research i.e. financial ratio presented fraud financial statements. On investigation there no researches like auditor's remarks present published reports. For reason, paper develops opti...

Fraudulent financial reporting is a big issue not only for investors but also other stakeholders. This research uses two popular fraud detection models by Beneish (1997, 1999a) and Dechow et al. (2011). The main goal of this paper to compare the precision these prediction in statements Iranian companies. Firstly, we try identify statistical description related first fourth quartiles models. The...