Review of Public Procurement Fraud Detection Techniques Powered by Emerging Technologies

The rise of digital payments has caused consequential changes in the financial crime landscape. As a result, traditional fraud detection approaches such as rule-based systems have largely become ineffective. Artificial intelligence (AI) and machine learning solutions using graph computing principles have gained significant interest in recent years. Graph-based techniques provide unique solution opportunities for financial crime detection. However, implementing such solutions at industrial-scale in real-time financial transaction processing systems has brought numerous application challenges to light. In this paper, we discuss the implementation difficulties current and next-generation graph solutions face. Furthermore, financial crime and digital payments trends indicate emerging challenges in the continued effectiveness of the detection techniques. We analyze the threat landscape and argue that it provides key insights for developing graph-based solutions.

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Fraudulent credit card transaction detection using soft computing techniques

Indonesian Journal of Electrical Engineering and Computer Science ◽

10.11591/ijeecs.v23.i3.pp1634-1642 ◽

2021 ◽

Vol 23 (3) ◽

pp. 1634

Author(s):

Aishwarya Priyadarshini ◽

Sanhita Mishra ◽

Debani Prasad Mishra ◽

Surender Reddy Salkuti ◽

Ramakanta Mohanty

Keyword(s):

Soft Computing ◽

Credit Card ◽

Nearest Neighbor ◽

Detection System ◽

Fraud Detection ◽

K Nearest Neighbor ◽

Computationally Efficient ◽

Detection Techniques ◽

Government Organizations ◽

Soft Computing Techniques

<p>Nowadays, fraudulent or deceitful activities associated with financial transactions, predominantly using credit cards have been increasing at an alarming rate and are one of the most prevalent activities in finance industries, corporate companies, and other government organizations. It is therefore essential to incorporate a fraud detection system that mainly consists of intelligent fraud detection techniques to keep in view the consumer and clients’ welfare alike. Numerous fraud detection procedures, techniques, and systems in literature have been implemented by employing a myriad of intelligent techniques including algorithms and frameworks to detect fraudulent and deceitful transactions. This paper initially analyses the data through exploratory data analysis and then proposes various classification models that are implemented using intelligent soft computing techniques to predictively classify fraudulent credit card transactions. Classification algorithms such as K-Nearest neighbor (K-NN), decision tree, random forest (RF), and logistic regression (LR) have been implemented to critically evaluate their performances. The proposed model is computationally efficient, light-weight and can be used for credit card fraudulent transaction detection with better accuracy.</p>

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Parameters of automated fraud detection techniques during online transactions

Journal of Financial Crime ◽

10.1108/jfc-03-2017-0024 ◽

2018 ◽

Vol 25 (3) ◽

pp. 702-720 ◽

Cited By ~ 2

Author(s):

Vipin Khattri ◽

Deepak Kumar Singh

Keyword(s):

Detection System ◽

Fraud Detection ◽

Security System ◽

Research Papers ◽

Content Type ◽

Detection Techniques ◽

Online Transactions ◽

Detection Systems ◽

Different Types ◽

Depth Study

Purpose This paper aims to provide information of parameters and techniques used in the automated fraud detection system during online transaction. With the increase in the use of online transactions, the concerns regarding data security have also increased. To tackle the frauds, lot of research has been done and plethora of papers are available on the related topics. The purpose of this paper is to provide the clear pathway for researchers to move in the direction of development of automated fraud detection system to prevent the fraud during online transaction. Design/methodology/approach This literature review analyses and compares the different types of techniques for detecting fraud during online transaction. An in-depth study of the most prominent journals has been done and the core methodology of the papers has been presented. This article also shed some light on different types of parameters used in fraud detection techniques during online transaction. Findings There are vast varieties of various fraud detection techniques, and every technique has completed task in its own way. After studying approximately 41 research papers, 14 books and four reports, in total 30 parameters have been identified and a detailed study of the parameters has been presented. The parameters are also listed with their details that how these parameters are used in the security system for detecting online transaction fraud. Research limitations/implications This paper provides empirical insight about the parameters and their prominence in the development of automated fraud detection security system of online transaction. This paper encourages the researchers to development of improved fraud detection system. Practical implications This paper will pave the way for researchers to do a focused research on the fraud detection methodologies. The analysis will help in zeroing down the most prevalent topic of research in this field. The researchers will be able to understand the internal details of parameters and techniques used in the fraud detection systems. This literature also helps the research to think in a variety of ways that how these parameters will be used in the development of fraud detection system. Originality/value This paper is one of the most comprehensive reviews in its field. It tries and attempts to fill a void created because of lack of compilation of the laid fraud detection parameters.

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A Survey on Credit Card Fraud Detection Techniques in Banking Industry for Cyber Security

10.1109/besc53957.2021.9635559 ◽

2021 ◽

Author(s):

Eyad Btoush ◽

Xujuan Zhou ◽

Rai Gururaian ◽

KC Chan ◽

XiaoHui Tao

Keyword(s):

Cyber Security ◽

Credit Card ◽

Banking Industry ◽

Fraud Detection ◽

Credit Card Fraud ◽

Detection Techniques

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Fraud triangle in public procurement: evidence from Indonesia

Journal of Financial Crime ◽

10.1108/jfc-11-2018-0121 ◽

2019 ◽

Vol 26 (4) ◽

pp. 951-968 ◽

Cited By ~ 2

Author(s):

Ni Wayan Rustiarini ◽

Sutrisno Sutrisno ◽

Nurkholis Nurkholis ◽

Wuryan Andayani

Keyword(s):

Negative Affect ◽

Conflicts Of Interest ◽

Detection System ◽

Public Procurement ◽

Fraud Triangle ◽

Effective Prevention ◽

Content Type ◽

The Government ◽

The Relationship ◽

Procurement Fraud

Purpose This study aims to examine the effects of fraud triangle (pressure, opportunity and rationalization) on individual fraudulent behavior in Indonesian public procurement. Empirical research in this area is relatively sparse. Design/methodology/approach Data were collected using laboratory experiments. Findings The results revealed that fraudulent behavior is higher when an individual has high pressure and high opportunity. These factors play an important role in determining individual rationalization. Most of participants used “displacing responsibility” to rationalize their actions. This study also demonstrated that negative affect mediates the relationship between fraudulent behavior and rationalization. Research limitations/implications First, fraudulent behavior research cannot be separated from social desirability bias. Second, the experiments only involved individual decision-making, not in groups. Finally, this study did not examine the effectiveness of rationalization in reducing negative affect. Practical implications Over the years, the government has only focused on the identification of pressure and reduction of opportunities, but ignored individual psychological reasons. Considering that procurement fraud is always increasing, the government must more focus on individual reasons to design an effective prevention and detection system. Social implications There are various conflicts of interest in public procurement budgeting. These conflicts can distort resource allocation and causes budget leakage. As a result, the government is incapacitated to achieve social and economic goals of the community. Originality/value There is limited research about fraud in public procurement budgeting, especially in developing countries. In addition, the fraud triangle research, which focuses on rationalization is still limited.

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