scholarly journals Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria

2021 ◽  
Vol 4 (3) ◽  
pp. 74-119
Author(s):  
Edward Idemudia Agboare
Keyword(s):  
Fraud Detection ◽  
Control Measures ◽  
Primary Data ◽  
Financial Fraud ◽  
Biometric Authentication ◽  
Automated Control ◽  
Fraud Risk ◽  
Forensic Accounting ◽  
Financial Transactions ◽  
The Impact

The study examines the impact of forensic accounting on financial fraud detection in Deposit Money Banks (DMBs) in Nigeria. Survey research design was employed for the study with extensive reliance on primary data obtained through the use of structured Likert scale questionnaire. The data were tested using descriptive statistics and regression analysis on Statistical Package for Social Sciences (SPSS version 20.0). The study findings showed that forensic accounting techniques of conducting investigation, analyzing financial transactions and reconstructing incomplete accounting records have significant effect on financial fraud detection in deposit money banks in Nigeria. In the light of the study findings, the following recommendations were provided; more forensic accountants should be employed by DMBs in Nigeria to assist curb modern day financial fraud brought about by advancement in technology. The Central Bank of Nigeria (CBN) should in collaboration with all financial institutions establish an electronic fraud risk information center staffed with forensic accountants. DMBs should incorporate automated control measures such as biometric authentication of transactions to serve as deterrent for fraud occurring.

scholarly journals The Application of Benford’s Law in Fraud Detection: A Systematic Methodology

2019 ◽  
Vol 12 (10) ◽  
pp. 1
Author(s):  
Nirosh Kuruppu
Keyword(s):  
Fraud Detection ◽  
Benford’S Law ◽  
Financial Fraud ◽  
Spreadsheet Program ◽  
Naturally Occurring ◽  
Systematic Methodology ◽  
Benford's Law ◽  
The Cost ◽  
Financial Transactions

Benford’s Law relies on a recently proven mathematical distribution about the frequencies of naturally occurring numbers that can be efficiently applied to the detection of financial fraud. Despite the value of Benford’s Law for detecting fraud, most financial professionals are often unaware of its existence and how to best utilise the method for fraud detection. The purpose of this paper is therefore to present a systematic methodology for incorporating Benford’s Law for detecting and flagging potentially fraudulent financial transactions, that can be further investigated. This paper describes the development of Benford’s Law and demonstrates how it can be implemented systematically through a spreadsheet program to detect potential fraud. Given that the cost of financial fraud is significant with firms losing up to a tenth of their revenues, the methodology presented in this paper for implementing Benford’s Law can be a valuable tool for auditors and other financial professionals for detecting fraud.

scholarly journals Risk Management of Credit Card Payment Gateway using Octave Allegro Methodology At Electronic Payment Provider Institution

2019 ◽  
Vol 8 (4) ◽  
pp. 11831-11838
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Credit Card ◽  
Group Discussion ◽  
Control Measures ◽  
Internet Technology ◽  
Card Payment ◽  
Financial Transactions ◽  
The Impact ◽  
Payment Gateway

The use of internet technology is growing very fast which is driving the development of businesses in Indonesia, one of which is in the eCommerce sector. To support payment transactions conducted by e-commerce, in conducting this business, it is necessary to collaborate with business partner engaged in the payment gateways sector. Company partner engaged in the payment gateways sector to provide solutions to electronic financial transactions where one product is a credit card payment gateways. The purpose of this research is to make a risk assessment and risk management for audit certification credit card payment gateway Company. Risk assessment can help to know what are the risks that may occur, how big the impact of these risks, as well as recommendations related control measures must be carried out if the impact of these risks occur. This research using OCTAVE Allegro methodology to identify and evaluate information security risks credit card payment gateway. This research is qualitative research consisting of observation, conducting group discussion with the respondents. The respondend of this research are VP Development and Service Provisioning, VP Operation and Infrastructure, Manager Front End 1, Manager Back End 2, and Senior Programmer. Results of this research are 9 critical information assets in credit card payment gateway in COMPANY, such as : Card Holder Data & Customer Credential, Data Center, Physical Devices, Logical Storage, Logical Network, Supporting Software, Core Application, Encryption Key, and Human Resources. There are 21 risks that may occur during in credit card payment gateway. From 21 risks that were identified, obtained 15 risks are defer, 3 risks to be acceptable, and 3 risks should be mitigate.

scholarly journals Quantitative parameters of anti-money laundering regulation

2020 ◽  
Vol 25 (4) ◽  
pp. 416-429
Author(s):  
N.Yu. Tanyushcheva
Keyword(s):  
Money Laundering ◽  
Systems Approach ◽  
Financial Sector ◽  
Control Measures ◽  
Automated Control ◽  
Macroeconomic Indicators ◽  
Cash Transaction ◽  
Per Capita ◽  
Cis Countries ◽  
The Impact

Subject. As financial institutions carry out a huge number of transactions, the financial sector definitely needs to automate some control procedures, including anti-money laundering ones. The effectiveness of automated control measures directly depends on how adequately tasks for the software are written. The article examines the impact of macroeconomic indicators, such as GDP per capita, average wage, and the scale of the shadow economy in the G20 countries and in two of the CIS countries (Belarus and Tajikistan) on thresholds of the fixed limit of transaction (FLT), which is regulated with the anti-money laundering legislation, including the fixed limit of cash transaction (FLCT). Objectives. I investigate approaches to setting FLT (FLCT) in different countries and formulate my opinion on this issue. Methods. The methodological basis of the study was made up of empirical and logical constructions, statistical analysis, synthesis, systems approach. Results. I identified why FLT (FLCT) are denied. This happens due to lawmakers' confidence in the effectively controlled financial sector, or the corruption pressure. The countries with FLT (FLCT) introduce and use them formally. The article presents the risk-based approach to measuring the FLCT based on the macroeconomic indicators (average annual wages, savings per capita). Conclusions and Relevance. The case of Russia shows that the inflation undermines the barrier function of FLT (FLCT), while the analytical division of financial intelligence has to handle more issues. The proposed approach will help reduce costs the financial system incurs to process financial information in order to counter money laundering.

scholarly journals Impact of Fraud Preventive Measures on Good Corporate Governance

2020 ◽  
Vol 4 (1) ◽  
pp. 35
Author(s):  
Ali Rehman ◽  
Fathyah Hashim
Keyword(s):  
Risk Assessment ◽  
Corporate Governance ◽  
Preventive Measures ◽  
Listed Companies ◽  
Fraud Risk ◽  
Good Corporate Governance ◽  
Forensic Accounting ◽  
The Impact ◽  
Preventive Role

This study seeks to understand the impact of fraud preventive measures on good corporate governance within Omani public listed companies. Fraud preventive measures are considered as fraud risk assessment and preventive role of forensic accounting. This study also proposed that preventive role of forensic accounting mediates the relationship between fraud risk assessment and good corporate governance. Unit of analysis is public listed companies in Oman. This study utilized census sampling with quantitative cross sectional study. PLS-SEM was employed for the data and result analysis. Results suggest that, fraud risk assessment does not have significant impact on good corporate governance; whereas, preventive role of forensic accounting has significant impact on good corporate governance and it is also mediating between fraud risk assessment and good corporate governance. This study can assist regulators and policy makers towards inclusion of forensic accounting as permanent and compulsory component of the codes of corporate governance. Moreover, it is highly recommended for organizations to have in-house antifraud activity which can support and enhance good corporate governance. This study identifies forensic accounting as in-house preventive measure activity which can be available within an organization and working as governance management. This preventive role of forensic accounting is not explored before especially in the Omani market.

Retaliatory effect on whistle blowing intentions: a study of Indian employees

2020 ◽  
Vol 27 (4) ◽  
pp. 1221-1237
Author(s):  
Sunaina Kanojia ◽  
Shikha Sachdeva ◽  
Jai Prakash Sharma
Keyword(s):  
Corporate Governance ◽  
Locus Of Control ◽  
Organizational Structures ◽  
Vital Role ◽  
Primary Data ◽  
Financial Fraud ◽  
Personal Factors ◽  
Content Type ◽  
Public And Private Sector ◽  
The Impact

Purpose This paper attempts to find the essence of whistleblowing in organizational structures, to reflect on whistleblowing mechanism and the perception of whistleblowing in the working class of a country. Whistleblowing is exhibited as one of the quintessential elements of corporate governance to prevent or detect inundating corporate frauds. This study examines the whistleblowing intentions and its precursors with the knowledge of repercussions, in context of Indian employees. Design/methodology/approach Primary data has been analysed herein using a structured questionnaire from 396 Indian employees of public and private sector companies of India using, multiple regression analysis. Findings It provides evidence that personal factors like organizational commitment, locus of control impact whistleblowing intentions vary by the type of fraud the employee encounters. The study presents a case for variation of considerable extent in non-financial fraud and financial fraud. Further, the kind of organization the employee is working in is an essential antecedent for whistleblowing behaviour of an employee. It highlights higher the perceived power or status held by the wrongdoer; higher would be an employee’s intentions to blow the whistle against him. Practical implications It would help managers in developing an environment which would encourage the employees by creating a self-check mechanism in the organization for improved conduct and better corporate governance. The shreds of evidence show that locus of control plays a vital role in moderating the impact of other antecedents on whistleblowing intentions of the employees. Originality/value Organization’s expectation from the employees to blow the whistle against wrong doing also makes the organization responsible for protecting the employee from the retaliation, which could follow after the act of whistleblowing. Also, prompts for imbibing ethical conduct throughout the organizational hierarchy.

scholarly journals A Relative Investigation of Various Algorithms for Online Financial Fraud Detection Techniques

2021 ◽  
Author(s):  
C Pallavi ◽  
Girija R ◽  
Vedhapriyavadhana R ◽  
Barnali Dey ◽  
Rajiv Vincent
Keyword(s):  
Credit Card ◽  
Detection System ◽  
Geographical Area ◽  
Fraud Detection ◽  
Location Analysis ◽  
Financial Fraud ◽  
Detection Techniques ◽  
Spending Patterns ◽  
Efficient Data ◽  
Financial Transactions

Online financial transactions play a crucial role in today’s economy. It becomes an unavoidable part of the business and global activities. Transaction fraud executes thoughtful intimidations to e-commerce spending. Now-a-days, the online contract or business is fetching additional sound by knowing the types of online transaction frauds associated with, these are raising which disturbs the currency accompanying business. It has the capability to confine and encumber the contract accomplished by the intruder from an honest consumer’s credit card information. In order to avoid such a problem, the proposed system is established transaction limit for the customers. Efficient data is only considered for detecting fraudulent user action and it happens only at the time of registration. Transaction which is happening for any individual is not at all known to any FDS (Fraud Detection System) consecutively at the bank which mainly issues credit cards to customers. To speak out this problem, BLA (Behaviour and Location Analysis) is executed. The FDS tracks at a credit card provided by bank. All the inbound business is directed to the FDS aimed at confirmation, authentication and verification. FDS catches the card particulars and matter to confirm that the operation is fake or genuine. The pick-up merchandises are unknown to Fraud Detection System. If the transaction is assumed to be fraud, then the corresponding bank declines it. In order to verify the individuality, uniqueness or originality, it uses spending patterns and geographical area. In case, if any suspicious pattern is identified or detected, the FDS system needs verification. The information which is already registered by the user, the system identifies infrequent outlines in the disbursement method. After three invalid attempts, the system will hinder the user. In this proposed system, most of the algorithms are checked and investigated for online financial fraud detection techniques.

scholarly journals An investigation into the erroneous access and egress behaviours of building users and their impact upon building performance

Facilities ◽  
2020 ◽  
Vol 38 (9/10) ◽  
pp. 739-760 ◽  
Author(s):  
Charlotte Dixon ◽  
David John Edwards ◽  
Monica Mateo-Garcia ◽  
Joseph Lai ◽  
Wellington Didibhuku Didibhuku Thwala ◽  
...  
Keyword(s):  
Radio Frequency Identification ◽  
Methodological Approach ◽  
Energy Performance ◽  
Disabled Persons ◽  
Control Measures ◽  
Primary Data ◽  
Building Performance ◽  
Content Type ◽  
Identification Tags ◽  
The Impact

Purpose This study aims to investigate the behaviour of building users and how this impacts upon building energy performance. Specifically, the work examines the behavioural traits of able-bodied users of a large higher education building who erroneously access and egress the building using doorways intended for disabled users. Design/methodology/approach An inductive methodological approach is adopted that uses grounded theory to devise new insights into building users’ access and egress habits. Structured interviews are conducted to collect primary data from 68 building users of a large educational building over a four-week period. Responses to questions posed provide the basis for a tabularisation of behavioural traits. Findings Reasons for able-bodied building users’ preferences to using disabled access are identified and discussed; these are thematically grouped under the headings of apathy, convenience, emergency, ergonomics, ignorance and phobia. Building upon these findings, the research then offers insights into the approaches that could be adopted to change the erroneous behaviours. These approaches include education of building users on the impact their behaviour has upon building performance and environmental pollution, more stringent regulation to penalise repeat offenders and changes to building entrance design using obtrusive (i.e. radio frequency identification tags) and unobstrusive control measures (i.e. a second entrance doorway or slower opening mechanism). Originality/value To the best of the author’s knowledge, this study is the first of its kind to investigate the rationale for able-bodied building users erroneously using disabled persons’ access and egress doorways within a building, which as a consequence, inadvertently reduces the building’s environmental performance.

Quantitative parameters of anti-money laundering regulation

2021 ◽  
Vol 14 (1) ◽  
pp. 21-43
Author(s):  
Nataliya Yu. TANYUSHCHEVA
Keyword(s):  
Money Laundering ◽  
Systems Approach ◽  
Financial Sector ◽  
Control Measures ◽  
Automated Control ◽  
Macroeconomic Indicators ◽  
Cash Transaction ◽  
Per Capita ◽  
Cis Countries ◽  
The Impact

Subject. As financial institutions carry out a huge number of transactions, the financial sector definitely needs to automate some control procedures, including anti-money laundering ones. The effectiveness of automated control measures directly depends on how adequately tasks for the software are written. The article examines the impact of macroeconomic indicators, such as GDP per capita, average wage, and the scale of the shadow economy in the G20 countries and in two of the CIS countries (Belarus and Tajikistan) on thresholds of the fixed limit of transaction (FLT), which is regulated with the anti-money laundering legislation, including the fixed limit of cash transaction (FLCT). Objectives. I investigate approaches to setting FLT (FLCT) in different countries and formulate my opinion on this issue. Methods. The methodological basis of the study was made up of empirical and logical constructions, statistical analysis, synthesis, systems approach. Results. I identified why FLT (FLCT) are denied. This happens due to lawmakers’ confidence in the effectively controlled financial sector, or the corruption pressure. The countries with FLT (FLCT) introduce and use them formally. The article presents the risk-based approach to measuring the FLCT based on the macroeconomic indicators (average annual wages, savings per capita). Conclusions and Relevance. The case of Russia shows that the inflation undermines the barrier function of FLT (FLCT), while the analytical division of financial intelligence has to handle more issues. The proposed approach will help reduce costs the financial system incurs to process financial information in order to counter money laundering.

The effectiveness of fraud detection instruments in not-for-profit organizations

2015 ◽  
Vol 30 (4/5) ◽  
pp. 435-455 ◽  
Author(s):  
Tyge-F. Kummer ◽  
Kishore Singh ◽  
Peter Best
Keyword(s):  
Fraud Detection ◽  
Content Type ◽  
For Profit ◽  
Fraud Risk ◽  
Not For Profit ◽  
Detection Instrument ◽  
The Impact ◽  
The Relationship ◽  
Not For Profit Organizations ◽  
For Profit Organizations

Purpose – The purpose of this study is to investigate the effectiveness of fraud detection instruments in not-for-profit (NFP) organizations. Not-for-profit organizations rely on trust and volunteer support. They are often small in size and do not have relevant expertise to prevent fraud. Such organizations are more vulnerable to fraud and, consequently, require effective fraud detection instruments. The existing literature on fraud detection is primarily descriptive and does not measure instrument performance. The authors address this research gap and provide a detailed overview of the impact of nine common fraud detection instruments. Design/methodology/approach – Data were obtained from an NFP fraud survey conducted in Australia and New Zealand. A set of contingency tables is produced to explore the relationship between the existence of a specific fraud detection instrument and actual detection of fraud. We also investigate the relationship between organization size and fraud detection strategy. Findings – The findings provide valuable insights into understanding fraud detection mechanisms. Although most fraud detection measures may not lead to more fraud detection, three highly effective instruments emerge, namely, fraud control policies, whistle-blower policies and fraud risk registers. The results also reveal that commonly used fraud detection instruments are not necessarily the most effective. This is true in a significant number of small organizations that appear to be focusing on ineffective fraud detection instruments. Practical implications – Implementation of more effective fraud detection measures will reduce the damage caused to an organization and is highly relevant for practitioners. Originality/value – The results show that differences in the effectiveness of fraud detection instruments in the NFP sector exist. This knowledge is directly applicable by related organizations to reduce fraud damage.

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