ARTICLE | doi:10.20944/preprints202006.0368.v1
Subject: Keywords: Fraud Detection; Recurrent Neural Network; PaySim; Financial Transactions; Deep Learning
Online: 30 June 2020 (11:34:34 CEST)
Online transactions are becoming more popular in present situation where the globe is facing an unknown disease COVID-19. Now authorities of Countries requested peoples to use cashless transaction as far as possible. Practically it is not always possible to use it in all transactions. Since number of such cashless transactions have been increasing during lockdown period due to COVID-19, fraudulent transactions are also increasing in a rapid way. Fraud can be analysed by viewing a series of customer transactions data that was done in his/her previous transactions. Normally banks or other transaction authorities warned their customers about the transaction If any deviation is noticed by them from available patterns. These authorities think that it is possibly of fraudulent transaction. For detection of fraud during COVID-19, banks and credit card companies are applying various methods such as data mining , decision tree, rule based mining, neural network, fuzzy clustering approach and machine learning methods. These approaches is try to find out normal usage pattern of customers based on their past activities. The objective of this paper is to find out such fraud transactions during such unmanageable situation.Digital payment schemes are often threatened by fraudulent activities. Detecting fraud transaction in during money transfer may save customers from financial loss. Mobile based money transactions are focused in this paper for fraud detection. A Deep Learning (DL) framework is suggested in this paper that monitors and detects fraudulent activities. Implementing and applying recurrent neural network on PaySim generated synthetic financial dataset, deceptive transactions are identified. The proposed method is capable to detect deceptive transactions with an accuracy of 99.87%, F1-Score of 0.99 and MSE of 0.01.
ARTICLE | doi:10.20944/preprints202108.0028.v1
Subject: Keywords: Financial Analytics, Parametric and Non-parametric, Credit card fraud detection, bankruptcy detection, loan default prediction
Online: 2 August 2021 (12:15:52 CEST)
The growth of regularly generated data from many financial activities has significant implications for every corner of financial modeling. This study has investigated the utilization of these continuous growing data by a means of an automated process. The automated process can be developed by using Machine learning based techniques that analyze the data and gain experience from the underlying data. Different important domains of financial fields such as Credit card fraud detection, bankruptcy detection, loan default prediction, investment prediction, marketing and many other financial models can be modeled by implementing machine learning models. Among several machine learning based techniques, the use of parametric and non-parametric based methods are approached by this research. Two parametric models namely Logistic Regression, Gaussian Naive Bayes models and two non-parametric methods such as Random Forest, Decision Tree are implemented in this paper. All the mentioned models are developed and implemented in the field of Credit card fraud detection, bankruptcy detection, loan default prediction. In each of the aforementioned cases, the comparative study among the classification techniques is drawn and the best model is identified. The performance of each classifier on each considered domain is evaluated by various performance metrics such as accuracy, recall, precision, F1-score and mean squared error. In the credit card fraud detection model the decision tree classifier performs the best with an accuracy of 99.1% and, in the loan default prediction and bankruptcy detection model, the random forest classifier gives the best accuracy of 97% and 96.84% respectively.
Subject: Mathematics & Computer Science, Information Technology & Data Management Keywords: fraud audit; process mining; visual analytics
Online: 2 March 2021 (09:19:01 CET)
Among the knowledge areas in which process mining has had an impact, the audit domain is particularly striking. Traditionally, audits seek evidence in a data sample that allows to make inferences about a population. Mistakes are usually committed when generalizing the results and anomalies, therefore, appear in unprocessed sets. However, there are some efforts to address these limitations using process mining-based approaches for fraud detection. To the best of our knowledge, no fraud audit method exists that combines process mining techniques and visual analytics to identify relevant patterns. This paper presents a fraud audit approach based on the combination of process mining techniques and visual analytics. The main advantages are: (i) a method is included that guides the use of the visual capabilities of process mining to detect fraud data patterns during an audit; (ii) the approach can be generalized to any business domain; (iii) well-known process mining techniques are used (Dotted Chart, Trace Alignment, Fuzzy Miner…). The techniques were selected by a group of experts and were extended to enable filtering for contextual analysis, to handle levels of process abstraction, and to facilitate implementation in the area of fraud audits. Based on the proposed approach, we developed a software solution that is currently being used in the financial sector as well as in the telecommunications and hospitality sector. Finally, for demonstration purposes, we present a real hotel management use case in which we detected suspected fraud behaviors, thus validating the effectiveness of the approach.
ARTICLE | doi:10.20944/preprints201901.0028.v1
Subject: Keywords: Fraud, Allegations, Ethics, Research Misconduct, Philosophy
Online: 3 January 2019 (14:26:28 CET)
In recent decades, a number of high-profile cases involving fraud as research misconduct have been in the media and resulted in severe consequences for those convicted. According to the increased cases of allegations and coverage in the media, this reflects a heightened awareness that fraudulent actions exist. Nonetheless, the Office of Research Integrity data suggests that despite the growth in the number of the cases of allegation there has not been a commensurate increase in findings of misconduct. The purpose of this paper is to explore misconduct to better understand what it entails. An analysis of misconduct from the perspective of the definitions of allegations and fraud of is conducted and potential frameworks for understanding both are considered. The paper considers serial-positioning effects of primacy and recency on allegation phenomena, as well as supervenience theory and contextualism as a lens for understanding fraud. Discussion of the relational semantics of the core aspects of fraud and de facto grouping of forms of misconduct. It is concluded that the interrogative pronouns of “what” and “when” could be used to categorize forms of misconduct laying the foundation for the next paper that deconstructs the definition of falsification according to the Public Health Service.
ARTICLE | doi:10.20944/preprints201811.0626.v1
Online: 30 November 2018 (10:01:44 CET)
This research paper contributes to the literature of deterrence theory in general, and in particular with respect to white-collar crime, offering valuable inside by using a unique data set of fraud and violation of trust incidents for Paraguay. Descriptive evidence show a clear and continuous misallocation of funds and human capital, and therefore providing less efficient services for the public. Regression analysis suggests that clearance rate exerts a highly significant effect in deterring fraud but results are not clear for violation of trust incidents. Despite the limitations of available data, results confirm deterrence theory in Paraguay. However, to more than two-thirds of victims, not even the attempt was made to seek justice. As a side-result, it seems that a soft on crime strategy, induced from the former German penal code, has led to an increasing share of pre-trial diversion and therefore enhancing white-collar crimes like fraud and violation of trust due to impunity.
REVIEW | doi:10.20944/preprints202102.0082.v1
Subject: Mathematics & Computer Science, Information Technology & Data Management Keywords: identity theft; cyber-crime; identity fraud; types; techniques
Online: 2 February 2021 (10:31:24 CET)
Online identity-based theft is known to be one of the most serious and growing threats to victims, such as individuals and organizations, over the last 10 years due to the enormous economic damage these crimes have caused. The availability of personal information on the Internet has increased the chances of this cyber-crime. Online identity theft crime is the result of a combination of cyber-crimes on the one hand and lack of awareness and training of users on the other hand to protect personal data on the other. Education and awareness, which also contributes to early detection, is the strongest tool for consumers to safeguard themselves from online identity fraud. This paper provides a comprehensive explanation of online identity theft, the various approaches that thieves use to attack individuals and organizations and the types of fraud involved in this cyber-crime. The aim of this research is to evaluate the need for a reformulation of the concept of identity theft in order to be compatible with the evolution of behaviors and fraud.
REVIEW | doi:10.20944/preprints202008.0151.v1
Subject: Keywords: Dwindling Economy; Nigeria Economic Sector; Fraud; Insecurity; Policy Implementation
Online: 6 August 2020 (10:26:16 CEST)
Dwindling Economy is otherwise known as depression economy or economy depression interchangeably and/or recess economy. It is an occurrence wherein an economy is in a state of financial turmoil, often the result of a period of negative activity based on the country’s Gross Domestic Product (GDP) rate. However, this has become a global phenomenon; a good example of a necessitating factor is the global oil crash market and pandemics virus (Covid-19) ravaging the human race. That has conjointly led to the decline in the GDP growth per capital of a country; which forces degradation in the performances of economic sectors, retrenchment of staff and wrapping-up of industries. It is a lot worse than a recession, with GDP falling significantly, and lasts for periods of time. Pen ultimately, Nigeria has been in deteriorating financial state for years; her economy in the last few years has been going through some turbulence. A country that had recorded an average GDP growth of 6.5 per cent, one of the highest in the world less than a decade ago, is now projected to grow at about 2.3 per cent in 2016. It is no longer news that Nigeria's economy is experiencing total collapse and if nothing is done to put the peg in the right spot something worse than what we are witnessing may soon be on sight. Based on some of all these issues and other, Nigeria was said to be technically recess.In this paper, efforts were made to explore the state of the Nigeria economy in the last 36 years (1981-2017) and correlate it with the recent phenomena that conjointly constitute to its dwindling economy. Our comprehensive and elusive literary survey and extemporariness suggested way forwards to rescue the raveling situation of Nigeria dwindling economics, if not providing lasting solution but temporarys’ one that could stand test of time.
ARTICLE | doi:10.20944/preprints202105.0035.v1
Subject: Social Sciences, Accounting Keywords: Blockchain Technology; Blockchain Trust; Security; Fraud; Human Resource (Hr) Management
Online: 5 May 2021 (11:33:40 CEST)
The impact that new technologies have on all aspects of our lives, work, and businesses is significant and growing over time. Blockchain and artificial intelligence, among other innovative technologies, are having a profound effect on practically all business functions, including most human resources (HR) tasks. The HR sector is currently facing a variety of challenges as HR departments invest many hours in vetting candidates' applications and authenticating records to decrease the chances of imperfect recruiting. Nowadays, more technologically based processes are utilised for talent search, selection and management, as well as for accumulating, retaining, and integrating new talents into a company. These HR practices are far more effective compared to traditional methods but can also be more expensive if the transactional costs are considered. This paper consists of two parts. Following an introduction, the first part discusses the trust and confidentiality that can be attained, while the second part examines security, fraud prevention and the productivity gained from using blockchain technology in HR activities. Finally, there is a concluding section, discussing the implications of blockchain technology for firms who choose to employ it.
ARTICLE | doi:10.20944/preprints201801.0193.v1
Subject: Mathematics & Computer Science, Artificial Intelligence & Robotics Keywords: multi-agent system; decision support; anti-money laundering; anti-fraud
Online: 22 January 2018 (04:46:20 CET)
The anti-money laundering (AML) process has failed both in identifying suspicious cases in due time as in assisting the AML analysts in decision making. Starting from a new generic anti-fraud approach, this article presents the main aspects related to the development of a multi-agent system that goes beyond the capture of suspicious transactions, seeking to assist the human expert in the analysis of suspicious behaviour. First, a transactional behavioural profile of clients is obtained in a data mining process. A set of rules, obtained through data mining over a real database, in conjunction with specific rules based on legal aspects and in the expertise of the AML analysts make up the agents' knowledge base. The cases for which the system was unable to suggest a decision are flagged as requiring more detailed analysis. The system analysed 6 months of real transactions and indicated several suspicious profiles, a set of these suspects was investigated by the AML analysts who proved the suspicion of several cases, including some that had not been identified by the systems in execution.
COMMUNICATION | doi:10.20944/preprints202112.0420.v3
Subject: Chemistry, Analytical Chemistry Keywords: Non-targeted methods; method validation; food fraud; food authenticity; mass spectrometry; spectroscopy; NGS; NMR
Online: 23 May 2022 (11:10:00 CEST)
Through its suggestive name, non-targeted methods (NTMs) do not aim at a predefined "needle in the haystack". Instead, they exploit all the constituents of the haystack. This new form of analytical methods is increasingly finding applications in food and feed testing. However, the concepts, terms, and considerations related to this burgeoning field of analytical testing needs to be propagated for the benefit of ones associated in academic research, commercial development, and official control. This paper addresses the frequently asked questions around notations and terminologies surrounding NTMs. The widespread development and adoption of these methods also necessitates the need to develop approaches to NTM validation, i.e., evaluating the performance characteristics of a method to determine if it is fit-for-purpose. This work aims to provide a roadmap to approaching NTM validation. In doing so, the paper deliberates on the different considerations that influence the approach to validation and provides suggestions thereof.