Why are auditors unable to detect fraudulent financial reporting in some audits? Should auditors be able to anticipate when fraud is likely to occur? Various studies have discussed not only the need for experience and supervision of auditors, but also the effect of decision models, and even expert systems, on fraud detection and the study of internal controls. This paper presents a discussion o...

Due to today’s advancement in technology and businesses, fraud detection has become a critical component of financial transactions. Considering vast amounts of data in large datasets, it becomes more difficult to detect fraud transactions manually. In this research, we propose a combined method using both data mining and statistical tasks, utilizing feature selection, resampling and cost-...

Financial fraud detection plays a crucial role in the stability of institutions and the economy at large. Data mining methods have been used to detect/flag cases of fraud due to a large amount of data and possible concept drift. In the financial statement fraud detection domain, instances containing missing values are usually discarded from experiments and this may lead to a loss of crucial inf...

a r t i c l e i n f o Corporate financial fraud has a severe negative impact on investors and the capital market in general. The current resources committed to financial fraud detection (FFD), however, are insufficient to identify all occurrences in a timely fashion. Methods for automating FFD have mainly relied on financial statistics, although some recent research has suggested that linguisti...

We present a social simulation model that covers three main financial services: Banks, Retail Stores, and Payments systems. Our aim is to address the problem of a lack of public data sets for fraud detection research in each of these domains, and provide a variety of fraud scenarios such as money laundering, sales fraud (based on refunds and discounts), and credit card fraud. Currently, there i...

In recent years, due to the expansion of financial institutions,as well as the popularity of the World Wide Weband e-commerce, a significant increase in the volume offinancial transactions observed. In addition to the increasein turnover, a huge increase in the number of fraud by user’sabnormality is resulting in billions of dollars in lossesover the world. T...

In recent years, due to the expansion of financial institutions,as well as the popularity of the World Wide Weband e-commerce, a significant increase in the volume offinancial transactions observed. In addition to the increasein turnover, a huge increase in the number of fraud by user’sabnormality is resulting in billions of dollars in lossesover the world. T...

The paper investigates the inherent problems of financial fraud detection and proposes a forensic accounting framework using business intelligence as a plausible means of addressing them. The paper adopts an empirical case study approach to present how business intelligence could be used effectively in the detection of financial accounting fraud. The proposed forensic accounting framework using...