Due to the dramatic increase of fraud which results in loss of billions of dollars worldwide each year, several modern techniques in detecting fraud are continually evolved and applied to many business fields. Fraud detection involves monitoring the behaviour of populations of users in order to estimate, detect, or avoid undesirable behaviour. Undesirable behaviour is a broad term including mis...

In the year 2009 several data privacy scandals have hit the headlines where major corporations had a legitimate need for detecting fraud conducted by their own employees, but chose inappropriate measures for data screening. This contribution presents architectures and pseudonymization technology for privacy compliant fraud screening or fraud detection, in order to reduce the number of undiscove...

ERP systems generally implement controls to prevent certain common kinds of fraud. In addition however, there is an imperative need for detection of more sophisticated patterns of fraudulent activity as evidenced by the legal requirement for company audits and the common incidence of fraud. This paper describes the design and implementation of a framework for detecting patterns of fraudulent ac...

In the last decade, high profile financial frauds committed by large companies in both developed and developing countries were discovered and reported. This study compares the performance of five popular statistical and machine learning models in detecting financial statement fraud. The research objects are companies which experienced both fraudulent and non-fraudulent financial statements betw...

Detecting corporate fraud and assessing the relative risk factors have been significant issues confronting the auditing profession for decades. This study therefore aims to apply a neural network system to predict fraud litigation for assisting accountants on audit strategy making. The empirical results show that neural network provides not only a promising predicting accuracy, but also a bette...

Available online 24 August 2010

One of the management measures to reduce tax liabilities is non-payment of taxes through tax fraud. Because personality factors may play a role in explaining tax ethics, examining personality traits and aspects of tax fraud can help to better understand the factors that influence tax decisions. The main purpose of this study is to provide a model for detecting tax fraud based on the personality...