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Objectives : Older adults are disproportionately vulnerable to frauds of many kinds, and fear of aging has been conjectured to be a primary factor in older adults' vulnerability to fraud; however, no study has examined how and when fear of aging is associated with older adults' vulnerability to fraud. Methods : In this cross-sectional study, a sample of 251 Chinese older adults ( M = 68.1, SD = 6.43) completed measures regarding fear of aging, intolerance of uncertainty, self-control, and vulnerability to fraud. Results : The results revealed that intolerance of uncertainty partially mediated the association between fear of aging and vulnerability to fraud. This indirect effect of fear of aging on vulnerability to fraud was only significant for older adults with lower levels of self-control. Conclusions : The association between fear of aging and older adults' vulnerability to fraud through intolerance of uncertainty varies as a function of self-control. Clinical implications : Clinicians may focus on reducing the fear of aging, decreasing intolerance of uncertainty, and enhancing self-control as promising pathways to develop effective interventions and outreach strategies aimed at protecting older adults from fraud.

Objectives: The goal of this study was to investigate the perception of financial exploitation and its causes and consequences by older adults who have firsthand experience of being exploited., Method: Thirty-one cognitively healthy older adult participants aged 50 or older were drawn from the Finance, Cognition, and Health in Elders Study. In-depth, one-on-one interviews were conducted. Interview transcripts were analyzed using an iterative, data-driven, thematic coding scheme and emergent themes were summarized., Results: Categories of financial exploitation included (a) investment fraud, (b) wage theft/money owed, (c) consumer fraud, (d) imposter schemes, and (e) manipulation by a trusted person. Themes emerged around perceived causes: (a) element of trust, (b) promise of financial security, (c) lack of experience or awareness, (d) decision-making, and (e) interpersonal dynamics. Perceived consequences included negative and positive impacts around (a) finances, (b) financial/consumer behaviors (c) relationships and trust, (d) emotional impact, and (e) future outlook., Discussion: These narratives provide important insights into perceived financial exploitation experiences., (© The Author(s) 2021. Published by Oxford University Press on behalf of The Gerontological Society of America. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com.)

During the economic crisis, developed countries have experienced financial fraud, with effects on the physical and mental health of the people affected, and on social domains. Based on the theoretical framework in literature reviews and in quantitative studies, this paper aims to obtain evidence on the effects of financial fraud on health and on the family and social environments of those affected. An intentional sample of 32 people affected by abusive and multi-currency mortgages, preferred and swap stock in Madrid was approached. In-depth interviews were conducted, and the resulting data was analysed using content analysis. Fraud-affected individuals had conditions of age, sex, educational level and occupations that possibly allowed them to accumulate economic resources throughout the course of their lives and, predictably in many cases, to take out fraudulent financial products, based on trust in the financial institutions. Financial fraud has led to the emergence of various processes of anomia and adverse health effects. The consequences on health were physical ailments (symptoms and diseases in various systems and parts of the body) and mental disorders (anxiety, depression, suicidal ideation), all affecting lifestyles, behaviour and personal and social relationships, both in affected individuals and their families. The increase in the use of medical drugs and health services serves as a final corollary to the imbalances on the affected people's health. Individuals and the Spanish society demand public health policy measures to mitigate the effects on health and the recovery of their confidence in the banking and political system., (Copyright © 2019 SESPAS. Publicado por Elsevier España, S.L.U. All rights reserved.)

Objectives: As reported in other high-income countries, around the 2008 Great Recession the Spanish banking sector engaged abusive practices that satisfy the definition of fraud. Our objective is to examine the association between self-reported bank fraud and physical health, using a gender perspective., Methods: With data from the 2017 Madrid Health Survey, we examined the association between the economic impact of fraud and poor self-rated health (SRH), comorbidity and pain (N = 4425). Interactions of time since fraud and sex with economic impact were tested by Poisson regression models with robust variance., Results: In total, 11% of adults in Madrid reported bank fraud since 2006. Among men, those who experienced frauds with severe economic impact were more likely to report adverse health than those who did not experience fraud (PR comorbidity: 1.46; PR pain conditions: 2.17). Among men time elapsed since fraud strengthened the association between severe economic impact and poor SRH (p = 0.022; p = 0.006, respectively). Among women, associations did not reach statistical significance., Conclusions: Bank frauds are an emerging phenomenon which is likely to damage public health. Stricter regulation to protect people from fraudulent bank practices is needed.

Over the past few decades, the financial system has engaged in abusive practices that meet the definition of fraud. Our objective is to compare the prevalence of psychological distress and levels of health-related quality of life according to having been exposed to financial fraud and its economic impact on family finances. The City of Madrid Health Survey 2017 included specific questions on exposure to financial fraud-this section was administered to half of the participants ( n = 4425). Mental health need or caseness was defined by a score greater than two on the 12-item version of the Goldberg health questionnaire. Health-related quality of life was assessed by the Darmouth Coop Functional Health Assessment Charts/WONCA (COOP/WONCA). The prevalence of financial fraud was 10.8%. The prevalence rate ratio for caseness of those who experienced severe economic impact due to fraud was 1.62 (95%, CI 1.17-2.25; reference: no fraud), after adjustment by age, sex, social class, and immigrant status. Women experienced a decreased quality of life, even with a moderate impact of fraud, while men experienced a decreased quality of life related to fraud with severe economic impact. The current study contributes to a growing body of literature showing the effects of economic shocks on health as a result of financial fraud.

Older adults are disproportionately targeted by various kinds of fraud, which result in irreversible economic losses and great psychological distress. Over the past years, researchers have conducted systematic research on the prevalence, under-reporting, and research methods of fraud victimization in older adults. Research paradigms regarding fraud victimization among older adults have mainly included cognitive, emotion regulation and motivation, and comprehensive paradigms. Factors shown to influence fraud victimization among older adults include cognitive decline, emotional regulation and motivational changes, their overly trusting nature, psychological vulnerability, social isolation, risk-taking, and a lack of knowledge and information regarding fraud prevention. Based on a review of the literature, future research can benefit from constructing a comprehensive fraud victimization theory, improving research methods, extending existing research, exploring physiological mechanisms of elderly fraud, and strengthening prevention and intervention efforts.

Objectives: The purpose of this paper is to summarize how state legislators are responding to the increasing incidence of elder financial fraud and exploitation (EFFE) and investigate the impact of new state legislation., Methods: Our empirical model investigates the impact of recent changes in state legislation, after controlling for relevant state demographics, on the prevalence of EFFE claims reported in the Consumer Sentinel Network database. We use panel data in a fixed effects model with and without time dummy variables., Results: States with additional penalties targeting EFFE have a significantly lower percentage of complaints from elders, whereas the impact of mandatory and protected voluntary reporting laws is not significant in this sample., Discussion: State legislators have increased their awareness of and are acting to produce legislation protecting the elderly from EFFE. Increased information, training and data sharing across states can go a long way to detecting and prosecuting EFFE cases.

Objective: To examine whether financial fraud is associated with poor health sleeping problems and poor quality of life., Methods: Pilot study (n=188) conducted in 2015-2016 in Madrid and León (Spain) by recruiting subjects affected by two types of fraud (preferred shares and foreign currency mortgages) using venue-based sampling. Information on the monetary value of each case of fraud; the dates when subjects became aware of being swindled, lodged legal claim and received financial compensation were collected. Inter-group comparisons of the prevalence of poor physical and mental health, sleep and quality of life were carried according to type of fraud and the 2011-2012 National Health Survey., Results: In this conventional sample, victims of financial fraud had poorer health, more mental health and sleeping problems, and poorer quality of life than comparable populations of a similar age. Those who had received financial compensation for preferred share losses had better health and quality of life than those who had not been compensated and those who had taken out foreign currency mortgages., Conclusion: The results suggest that financial fraud is detrimental to health. Further research should examine the mechanisms through which financial fraud impacts health. If our results are confirmed psychological and medical care should be provided, in addition to financial compensation., (Copyright © 2017 SESPAS. Publicado por Elsevier España, S.L.U. All rights reserved.)

This study examines the public discourse on financial fraud against older citizens in Chinese society using six focus groups with 45 stakeholders comprising social workers, police officers, caregivers, nurses, community representatives, and insurance and banking personnel. This study uses qualitative data to describe the patterns and social features that facilitate this specific type of crime in Hong Kong. The narratives of the community stakeholders reveal several specific social features of Hong Kong that contribute to financial fraud against older persons, such as traditional Chinese values and ideologies, increasing cross-border activities, the Internet and technological advancements, and unfavourable economic situations. The results of this study support the assumptions of the routine activity approach and have a number of theoretical and practical implications., (© The Author(s) 2015.)

Purpose: Financial fraud is a severe corporate fraud committed for achieving various objectives, like attaining financial targets, lowering debt and providing good signals to the market. Such financial fraud deceives stakeholders and results in substantial financial losses. This study aims to detect financial fraud using the modified Beneish M-Score, the most appropriate forensic tool for fraud detection. Furthermore, the current study also examines the influential role of the fraud triangle's elements (pressure, opportunity and rationalization) on financial fraud in nonfinancial firms during 2018–2021, offering insight for understanding and mitigating fraudulent activities in the corporate world. Design/methodology/approach: Financial fraud is treated as a dependent variable measured through a modified Beneish M-score, while the fraud triangle elements (pressure, opportunity and rationalization) are measured through six proxies, which are financial stability, leverage, financial target, nature of the industry, the effectiveness of supervision and auditor changes. Findings: The study's finding proclaimed that fraud triangle elements result in financial fraud. Findings unveil that all elements (pressure, opportunity and rationalization) of the fraud triangle significantly influence financial fraud. The study confirms that these elements must be considered to protect investors and provide a safe environment for investment. Originality/value: Rare literature found addressing the detection of financial fraud and its nexus with the fraud triangle specifically in Pakistan where deficient governance is notably prevalent. This study attempts to fill such a gap and contribute to knowledge. [ABSTRACT FROM AUTHOR]

Purpose: Upper bound on Sharpe ratio helps to evaluate the risk-adjusted performance in real market setting. The purpose of this study is to evaluate the performance of Shariah-compliant indices (SCIs) and also estimate the upper bound on Sharpe ratio in real-market setting. For comparison, the authors also report the same statistics for conventional indices (CIs). Design/methodology/approach: This study considers returns of 12 indices from Asia-Pacific and the USA for the time period May 31, 2013-Aug 25, 2022. These indices are further classified as small-, mid- and large-cap indices. The upper bound is estimated in three settings, an unconstrained setting, correlation constraint and copula constraint. Findings: The authors found that upper bound estimation is sensitive to both the choice of index, geographic location and size of constituents within the index. Interestingly, SCIs outperform CIs both in terms of Sharpe ratio and upper bound estimations. The ability of SCIs to achieve high Sharpe ratio boosts investors' confidence. The results are robust even after introducing correlation and copula constraints to the model. Practical implications: Any violation of the upper bound on Sharpe ratio is not necessarily an indication of fraud or dubious Sharpe ratio. It should be interpreted only as a signal for inflated risk-adjusted performance and requires further investigation. Together with risk-adjusted performance, fund managers should report upper bounds to insure investor protection. Originality/value: Many studies have compared the risk-adjusted performance of SCIs and CI. To the best of the authors' knowledge, this study is the first effort to evaluate and compare the upper bounds on Sharpe ratio of SCIs in a real-market setting. [ABSTRACT FROM AUTHOR]

To optimise the regulatory approach, the China Securities Regulatory Commission (CSRC) introduced the double‐random inspection policy (DRIP), which mandates that the provincial branches of the CSRC randomly select at least 5% of local listed firms each year and randomly assign inspectors to conduct on‐site inspections of their information disclosure and corporate governance practices. This paper investigates the real effect of the DRIP on corporate financial fraud. Performing a multi‐period synthetic difference‐in‐differences model (SDID), we first find that the random inspections of CSRC have a positive causal effect on the probability of exposing corporate financial fraud. Furthermore, our heterogeneity analysis reveals that this effect is more pronounced for private firms and firms with poor accounting information quality. We then delve into the mechanisms through which random inspections affect corporate financial fraud. Our findings suggest that random inspections influence corporate behaviour by increasing media and investor attention, as well as prompting the issuance of inquiry letters by stock exchanges. Finally, we examine the economic consequences of random inspections and find that random inspections by the CSRC reduce firms' stock price crash risk. [ABSTRACT FROM AUTHOR]

This paper examines the legal loopholes and regulatory measures taken in response to pyramid and Ponzi schemes, specifically analyzing the lessons learned from Albania's financial crisis in the 1990s and what insights Indonesia can learn. The collapse of these schemes in Albania, which had a catastrophic effect on the economy and triggered an entire social and political crisis, exposed significant measures in governance negligence, financial supervision, legal frameworks, and understanding of investments. Through an in-depth examination of the Albanian catastrophe experience, this paper examines the legal framework in terms of inadequate regulations, government negligence due to lack of experience handling Ponzi and pyramid scheme issues, and lack of investment literacy. The paper explores how Indonesia can enhance its legal and regulatory environment by drawing lessons from Albania's mistakes in the past. Suggestions involve strengthening financial authority roles, establishing specific regulations to regulate pyramid and Ponzi schemes, and providing comprehensive investment literacy education for investors. This study highlights the significance of legislative reform and efficient governance to prevent financial schemes that take advantage of legal loopholes and uneducated investors, ultimately leading to a more resilient and stable financial system. By examining Albania's experience, Indonesia may establish a proactive strategy to protect its citizens and economy from the dangers of pyramid and Ponzi schemes. [ABSTRACT FROM AUTHOR]

Are business groups more likely to commit financial fraud when they are politically connected? Many past studies and anecdotal evidence have pointed out that business groups may behave more opportunistically when they are politically connected. However, the nature of the business group-government relationship evolves amid governance reform in many countries, making it difficult for business groups to abuse their political connections. In this research, we examine the business group-government relationship through the lens of social exchange and find a deterring effect of political connections on a connected business group's propensity to commit fraud. Our results indicate that business groups are less likely to commit financial fraud when the extent of their political connection is high. By doing so, politically connected firms can prove themselves as legitimate business partners for the government and can more effectively secure a position to leverage their political connections. We additionally find that such an exchange relationship is weakened under a business group-unfriendly government due to their hostile relationships. [ABSTRACT FROM AUTHOR]

In the article the author examines the acts which are considered to be fraudulent in the field of banking. The purpose of the study is to define the concept of fraud in the field of banking, the acts which are related to it, and to formulate proposals to the Criminal Code of Ukraine based on a thorough analysis of the provisions of current criminal law and scientific sources. The author notes that fraud in banking poses a threat to banking in particular and the economy in general, since their commission entails rather serious negative consequences and affects the entire financial and economic security of the State. To ensure the efficient operation of banking institutions and their financial security, it is necessary to develop and implement an effective fraud detection and prevention system. This includes the use of advanced software solutions and compliance with security standards when working with electronic payment systems, identifying potential threats and using appropriate measures to prevent and deter fraud in the banking sector. The article notes that in order to effectively prevent fraud in the banking sector, it is necessary to first understand its essence, define the definition of this concept and generally characterize the actions which are the objective side of criminal offenses related to the commission of the analyzed types of fraud. On the basis of a thorough legislative, regulatory and scientific study and harmonization of the very definition of «fraud in the field of banking», the author proposes amendments and proposals to the Criminal Code of Ukraine. Based on the scientific analysis of the definition of the concept under study, it can be concluded that frauds committed in the banking sector include the following acts: frauds with bank accounts, frauds with credit cards, frauds related to forgery of documents for obtaining loans, as well as illegal actions by bank employees which result in fraudulent actions. [ABSTRACT FROM AUTHOR]

The concealment of assets is a critical challenge in financial fraud and asset recovery investigations, posing significant obstacles for creditors and regulatory authorities. National governments commonly possess the necessary data for detecting and combating this type of fraud, typically related to personal data and asset ownership. However, this information is often dispersed across different departments within the same government and sometimes in databases shared by other countries. This leads to difficulty semantically integrating this large amount of data in various formats and correlating entities through identifying hidden relationships, which are essential in this type of analysis. In this regard, this work proposes an ontology to support the data integration process in the domain of asset concealment and recovery and fill the gap in the existence of a public ontology for this domain. The applicability of this ontology in the context of integration between data from different departments and countries was validated. The use of the ontology in a pilot project in the context of a tool for investigating this type of fraud was conducted with a Brazilian government agency, and the users validated its applicability. Finally, a new method for constructing ontologies is proposed. The proposed process was evaluated during the asset concealment ontology building and proved to be more suitable than the similar processes analyzed concerning the partial reuse of existing ontologies and the construction of ontologies for data with a transnational scope. [ABSTRACT FROM AUTHOR]

The world is turning to financial fraud as a base for daily transactions due to the rapid growth of digital technologies, which creates numerous new opportunities for criminals to misuse credit and debit cards. The card's issuer should offer a service to shield users from any risks they might encounter in order to guarantee the security of users of those cards. This study describes the usage of deep learning algorithms for prediction of financial fraud. With the aim to represent the duration sequence generated by series of identical card transactions, we propose the use of an evolving machine learning technique. However, because most datasets containing financial fraud transactions are severely skewed, financial fraud detection remains a substantial issue for statistical solutions. This is a crucial field of research since fraudulent instances are difficult to identify and get tougher as more data is collected, decreasing the number of these instances. In this paper, utilising a Flexible Simulated Instance approach, the problem of data imbalance is resolved. Also, a tuned bidirectional LSTM with attention layer (A-BiLSTM) is proposed to detect the financial fraud. This model aims to improve existing detection strategies and detection accuracy in the context of enormous amounts of data. A benchmark dataset of financial frauds is used to evaluate the proposed model, and the outcomes are compared against existing models based on various deep learning approaches. The testing findings showed that A-BiLSTM performed flawlessly, achieving 99.96% accuracy. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud. Design/methodology/approach: The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village. Findings: The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study. Research limitations/implications: The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government. Practical implications: The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR. Originality/value: The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically. [ABSTRACT FROM AUTHOR]

We examine the characteristics of consumers who reported scams to the U.S. Federal Trade Commission. We assess how consumers vary demographically across six scam types, and how the overall emotional sentiment of a consumer's complaint (positive, negative, neutral/mixed) relates to reporting victimization versus attempted fraud (no losses). For romance, tech support, and prize, sweepstakes, and lottery scams, more older than young and middle-aged adults reported victimization. Across all scam types, consumers classified as Black, Hispanic, and Asian/Asian Pacific Islander were more likely than non-Hispanic white consumers to report victimization than attempted fraud. Relative to complaints categorized as emotionally neutral or mixed, we find that emotionally positive complaints and emotionally negative complaints were significantly associated with victimization, but that these relationships differed by scam type. This study helps identify which consumer groups are affected by specific scams and the association between emotion and victimization. [ABSTRACT FROM AUTHOR]

This article explores the emergence and evolution of financial fraud and money laundering schemes in Ukraine during the war. The study uses qualitative analysis methods, including a systematic review of news reports, scientific papers, and publicly available data. The findings reveal significant growth in financial fraud activities following the start of the full-scale invasion of Ukraine, driven by economic instability, emotional vulnerability, and trust in charitable initiatives. Key fraudulent schemes are categorized and analyzed, including volunteer fraud, fake investment projects, charity fraud, sales fraud, and banking and card scams. Furthermore, the study examines new fraudulent tactics, such as targeting government aid programs, impersonating social service representatives, and exploiting the psychological distress of victims. The research highlights how fraudsters quickly adapt to new circumstances during the war, creating increasingly sophisticated schemes to fraud individuals, military personnel, and organizations. Practical recommendations are provided for the prevention, detection, and mitigation of financial fraud in war contexts. These include enhancing public awareness, strengthening cybersecurity measures, improving legal frameworks, and fostering international cooperation to address the transnational nature of financial crimes. The study underscores the need for coordinated efforts between governmental structures, law enforcement agencies, and financial institutions to combat the rapidly evolving threat of financial fraud and money laundering during the war.

Drawing on prior literature on audit fees, client reputation, and corporate governance, we posit that a material adverse event at a firm, such as a financial fraud allegation, leads to an increase in the audit fees of firms connected to the former by a board interlock. We propose two possible mechanisms to explain the upward pressure on audit fees: a client-side effect, where the client demands additional audit services, and an auditor-side effect, where the auditor raises its audit fees due to a perceived increase in audit engagement risk. The results indicate an average marginal increase of 12.86% in audit fees in the year following the public revelation of financial fraud. Additional analyses suggest that an auditor-side effect is in place, while we cannot find clear evidence supporting the client-side effect. Furthermore, we document that the positive effect on audit fees persists for up to at least 2 years after public disclosure of the event when the interlocked director serves as a member of the audit committee. JEL Descriptors: G34, M40, M42 [ABSTRACT FROM AUTHOR]

The primary aim of this research is to present a thorough and all-encompassing examination of artificial intelligence (AI) methodologies employed in the detection of financial fraud. The present study employs a systematic literature review (SLR) that was conducted utilizing the PRISMA approach. A comprehensive search was undertaken on reputable academic databases including ScienceDirect, Scopus, Springer, and Emerald, yielding a total of 24 papers published throughout the timeframe of 2014 to 2023. These articles will, thereafter, undergo further analysis. The findings of this study demonstrate that the implementation of artificial intelligence (AI) techniques for detecting financial fraud yields favorable outcomes. Specifically, the AI approach proves to be effective in enhancing the precision and efficiency of fraud pattern identification, thereby making a substantial contribution in this domain. In contrast, the prevailing methodology employed in the realm of financial fraud detection is frequently centered around machine learning. Furthermore, a majority of the research encompassed a diverse range of industries, with particular emphasis on the financial industry as the primary domain for the implementation of artificial intelligence (AI) in the detection of financial fraud. [ABSTRACT FROM AUTHOR]

This study explores the critical character of auditor independence in preventing and detecting financial fraud within corporate governance frameworks. By analyzing the connection between auditor independence and instances of financial misconduct, the study highlights the challenges auditors face due to technical limitations, workload pressures, and compromised autonomy. Empirical data, gathered through a survey of 200 Chartered Accountants and Audit Committees, is analyzed using statistical methods to establish correlations between auditor independence, technological advancements, and fraud detection. The findings demonstrate a positive but modest link between auditor independence and financial fraud recognition, while also addressing the impact of automation and AI on auditing practices. The study emphasizes the significance of regulatory frameworks to strengthen aud itor independence and offers recommendations for enhancing audit quality and transparency in financial reporting. [ABSTRACT FROM AUTHOR]

With the rapid development of Internet finance, the problem of financial fraud has become increasingly prominent, which has brought severe challenges to the security and stability of the financial industry. This paper aims to use artificial intelligence (AI) technology to empower data mining models to build an efficient financial fraud detection and prevention system. First of all, through the analysis of the development trend of Internet finance and the current situation of financial fraud, the limitations of traditional prevention and control measures in the face of big data and complex fraud modes are revealed. Secondly, the paper introduces the application prospect of AI technology in the financial field, especially the advantages and potential in data mining and fraud detection. Then, the data mining techniques adopted are discussed in detail, including the application of machine learning-based model recognition and artificial intelligence algorithms, as well as data preprocessing and feature engineering in big data environment. Further, the paper describes the system architecture design and key technology implementation, including model training and optimization, real-time monitoring and early warning solutions. Finally, through the in-depth analysis and evaluation of the experimental results, the paper verifies the remarkable effect and feasibility of the system in financial fraud detection and prevention, and provides a new technical guarantee and risk management strategy for the financial industry. The experimental results show that the model has achieved good results in the actual data in the financial field, and provides effective technical guarantee and support for financial security. [ABSTRACT FROM AUTHOR]

This study aims to improve the accuracy of detecting financial fraud in listed companies by applying various deep learning algorithms. First, we comprehensively reviewed the current state of research on financial fraud theory and identified 67 recognition features to create a new recognition indicator system. Then, we collected data samples of all A-share listed companies from 2010 to 2022, preprocessed them, and generated a basic dataset. To address the unbalanced dataset, we used the Borderline-SMOTE algorithm. Empirical analysis results show that this algorithm can significantly improve the recognition performance of the model. Finally, we conducted experiments on the new dataset using three types of deep learning algorithms. The results show that the model constructed using the Long Short-Term Memory (LSTM) algorithm has the best prediction performance, with an accuracy rate higher than that of the DCRN, autoencoder, and other models. In addition, the classification effects of all deep learning algorithms are better than basic models and ensemble models. This research provides a powerful tool for the regulatory authorities of listed companies, helping them more effectively monitor and prevent financial fraud. We have three innovations in this study: (1) Development of a comprehensive recognition indicator system with 67 features; (2) Utilization of the Borderline-SMOTE algorithm to handle data imbalance; (3) Demonstration of the superior performance of the LSTM algorithm compared to other deep learning, basic, and ensemble models. [ABSTRACT FROM AUTHOR]

Fundraising fraud is one of the most serious and complicated financial crimes in China. It has an intertwined relationship with a regulatory offence, known as illegally taking in deposits from the general public (ITIDFGP). In judicial practice, ITIDFGP works as the downgraded form of fundraising fraud. This article explores why fundraising fraud is identified as financial fraud whereas ITIDFGP is a regulatory offence. The paper discerns the essence of fraud in Chinese criminal law and critically examines the concept of "intention to possess illegally." It argues that ITIDFGP should be classified as a form of fraud de jure , although, in reality, there are policy considerations behind its categorization as a regulatory offence. The paper also suggests that the role played by the socioeconomic policy in Chinese criminal-law legislation should be fully acknowledged. [ABSTRACT FROM AUTHOR]

In a retail financial market, firms strategically choose whether to commit financial fraud to exploit naive investors who are unaware of such practices. In a leader-follower setting, we identify a segmented equilibrium in which an honest firm offers a normal product to sophisticated investors, while a dishonest firm offers a fraudulent product that targets naive investors. Competition may not benefit investors because the presence of a rival firm reduces the profitability of offering a normal product and thus discourages honest behavior. If there is a positive cost of entry, the incumbent firm may strategically switch to offering a fraudulent product to deter entry. As a result, policies that alter the entry barriers to the market may have unintended negative effects on welfare. In the segmented equilibrium with free entry, the honest firm has an incentive to disclose information about financial fraud and steal market share from the dishonest firm. However, this incentive is limited because such disclosure may prompt the dishonest firm to deviate and compete for the normal product market. [ABSTRACT FROM AUTHOR]

Key points: This article highlights two types of publishing fraud: fake acceptance letter and financial fraud.Prepared by a third party, fake acceptance letters affirm that a paper, which we had never received before, has been accepted by IPSR.In the financial fraud case, a third party pretends to be an editor of IPSR, sends out authentic looking fake acceptance letters and then solicits authors to pay an article processing fee (APC). [ABSTRACT FROM AUTHOR]

The article analyzes the trends in the dynamics of public interest in the issues of combating financial fraud in the context of financial security. The methodology is based on the use of the Google Trends web tool and the peak approach using the Google Trends Scale. Using Google Trends line charts, a trend analysis was carried out for the keywords "financial fraud" and "financial security" in both languages (Ukrainian and English). The key parameters of the analysis are as follows: 1) timeframe: from June 2019 to March 2024; 2) boundaries: Ukraine and the whole world; 3) assessment: three levels of interest according to the GT scale (low (0-30 points), medium (31-70 points) and high (71-100)). The analysis of the dynamics of public interest has shown that interest in the term "financial security" is much higher than in the concept of "financial fraud". The research revealed common peaks of growth and decline in queries that correlate with important seasonal and global events. In particular, a significant increase in interest in both concepts in March 2022 is associated with the outbreak of war in Ukraine, which emphasizes the increased attention to financial risks in times of crisis. The general downturns in interest in December 2019, 2020, 2021, and 2022, as well as at the end of November 2022, can be explained by seasonal factors such as holiday periods. A distinctive fact is that for the search query "financial fraud", within Ukraine, for the analyzed period from 2019 to March 2024, Google Trends shows a complete lack of data. The results of the study demonstrate the critical importance of studying financial fraud and financial security in their interconnectedness to improve preventive measures and protection strategies during crises. A deep understanding of these interrelationships will help to develop effective policies aimed at reducing the risks of financial fraud and strengthening financial security, which are key to ensuring social and economic stability. [ABSTRACT FROM AUTHOR]

Financial frauds have been a growing problem across the global financial markets. Losses generated by such illegal activities affect both the global economy and individual entities, especially those operating in the financial market. Perpetrators of such frauds seem to always be one step ahead of the law enforcement, regulators as well as private sector entities such as banks and scientists. This review examines publishing actions taken throughout the years. It also shows whether there has been any correlation spotted between the number of papers published in a particular year and the events on the financial markets. Finally, the article summarises all types of financial frauds which have been identified in the literature and assesses whether the selection of those types is original or had already been identified in the past years. The study involved a systematic literature review to achieve the set goals. Following the final results of the article, it is clear that the issue of financial frauds has been a growing global concern. It is crucial to strengthen the collaboration between the regulators, law enforcement, academic environment and private sector. Cooperation across the sectors should include research on how to prevent and mitigate the consequences of this kind of frauds. [ABSTRACT FROM AUTHOR]

The ongoing coronavirus disease 2019 (COVID-19) pandemic has brought unexpected economic downturns and accelerated digital transformation, leading to stronger financial fraud motives and more complicated fraud schemes. Although scholars, practitioners, and regulators have begun to focus on the new characteristics of financial fraud, a systematic and effective anti-fraud strategy during the pandemic still needs to be explored. This paper comprehensively analyzes the lessons of anti-fraud that we should learn from the COVID-19 pandemic. By exploring the complex motives and schemes of fraud, we summarize the characteristics of financial fraud activities and further analyze the regulatory challenges posed by financial fraud during the outbreak. To better cope with the fraudulent activities during the pandemic, policy proposals on how to improve the supervision of financial fraud activities are put forward. In particular, the panoramic data and graph-based techniques are powerful tools for future fraud detection. [ABSTRACT FROM AUTHOR]

Purpose: This study expands the empirical understanding of financial fraud victims and the consequences that emerge as a result of financial fraud victimization. In addition, this study aims to assess the impact of the unique role victims play in financial fraud and the impact self-identifying as a victim has on the negative consequences they experience. Design/methodology/approach: Data from the Supplemental Fraud Survey to the National Crime Victimization Survey are used to assess the negative consequences of financial fraud victimization. Findings: Results suggest that victims of financial fraud experience increased distress and financial complications following their victimization experience. In addition, self-reported victim status is found to significantly increase a respondent's likelihood of reporting emotional distress and financial complications. Implications for research, theory and policy are discussed. Originality/value: While empirical studies on the consequences of identity theft victimization have been increasing in recent years, financial fraud victimization remains understudied. Given the victim involvement in financial fraud, the consideration of financial fraud independent of identity theft fraud is vital. [ABSTRACT FROM AUTHOR]

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Purpose: The purpose of this study is to examine whether executive compensation structure is a predictor of a value judgment shift facilitating fraud. The Raval (2018) disposition-based fraud model theorizes that in a fraud, a judgment shift occurs that results in an intentional action. Judgment shifts are influenced by intertemporal rewards, an executive compensation structure comprising salary (immediate reward) and delayed compensation in performance-based incentives. Design/methodology/approach: Using an archival data set consisting of frauds identified through Securities and Exchange Commission Accounting and Auditing Enforcement Releases, the compensation structure of executives involved in frauds is compared against the compensation structure of executives in a peer control group. Findings: There was a significant difference in the intertemporal rewards of the compensation structures between the two groups, indicating that compensation structure presents intertemporal choices leading to a judgment shift that influences the deliberate action of fraud. Research limitations/implications: This study represents the first empirical test of the disposition-based fraud model using intertemporal rewards leading to judgment shift. Practical implications: Executive compensation structure should reduce intertemporal rewards for executives reducing judgment shifts that can result in risk of fraud. Originality/value: This study addresses how executive compensation structure can result in fraud. [ABSTRACT FROM AUTHOR]

This article addresses the significant challenges posed by financial statement fraud, which threatens both individual organizations and the global financial markets. It critically examines the inadequacies of traditional fraud detection methods in confronting increasingly sophisticated fraud schemes. The study focuses on the innovative use of Markov models to understand and predict the evolving nature of financial fraud risk. The research introduces an advanced technique for adjusting the temporal evolution of Markov model transition probabilities, incorporating external factors like economic trends and regulatory changes. This recalibration employs a conditional probability function, enabling the model to remain responsive to the vicissitudes of the financial milieu. This approach allows the model to adapt to the changing financial environment. Key findings demonstrate the model's ability to evolve, reflecting the dynamic nature of financial fraud risk. A salient feature of this model is its attainment of a steady-state distribution, allowing for the ascertainment of enduring risk levels associated with financial fraud. This attribute gains prominence in environments characterized by diverse fraud detection capabilities The model achieves a steady-state distribution, indicating long-term financial fraud risk levels across various scenarios. The paper concludes that Markov models are vital in modern financial risk management, with practical applications in areas such as credit scoring and insurance claims. It highlights the regulatory significance of these models in assessing the impact of financial regulations. Furthermore, the integration of data analytics and machine learning is explored, enhancing the models' capability against complex cyber fraud. The adaptability and predictive accuracy of these models are crucial in dynamic financial environments, necessitating continuous refinement and integration with emerging technologies and theories. [ABSTRACT FROM AUTHOR]

The paper examines the relationship between financial fraud and a firm's implied equity cost. Using a U.S. sample of 15,552 firm‐year observations, we find a positive relationship between a firm's financial fraud and implied equity cost. Consistent with the monitoring channel, financial fraud increases a firm's equity cost in the presence of higher external and internal monitoring in terms of higher analyst coverage and institutional ownership. Our results are robust to alternate specifications and tests, including alternate definitions of equity cost, financial fraud, and other endogeneity concerns. The findings negate the business case of financial fraud by showing that financial fraud tends to enhance equity cost, thereby lowering the firm's value. [ABSTRACT FROM AUTHOR]

The intricate relationship between financial fraud and credit risk, and their combined impact on banking stability, is a vital and under-researched aspect of financial system integrity. To fill this knowledge gap, this study embarked on a thorough bibliometric analysis of the field, utilizing 2790 documents from various sources, including 1853 articles, 504 books, and 177 reviews, spanning the years 1990 to 2023. Utilizing advanced tools, like Biblioshiny and VOSviewer, this study illuminated key geographical, thematic, and intellectual trends, shedding light on an annual growth rate of 13.43% in the related literature and an average citation per document of 28.29. This detailed analysis offered valuable insights into the current research landscape, emphasizing areas such as author collaboration, with 20.32% international co-authorships, and the prevalence of single-authored documents, at 1100. Despite the existing body of research, the interconnected dynamics between financial fraud and credit risk and their implications for banking stability remain underexplored. Therefore, this study sought to unravel this complex relationship and examine its effects at both the micro (individual banks) and macro (banking sector and wider economy) levels. The findings carry significant practical implications, informing policy development, shaping risk management strategies, and contributing to regulatory measures. Despite its limitations, including the potential transformation of identified trends due to evolving financial systems and financial crimes, this study represents a significant contribution to scholarly discourse in the field. It lays the groundwork for future research and facilitates a more secure and resilient banking sector, reflecting the data-driven insights obtained from the research. [ABSTRACT FROM AUTHOR]

INTRODUCTION: With the development of economy, the phenomenon of financial fraud has become more and more frequent. OBJECTIVES: This paper aims to study the identification of corporate tax report falsification. METHODS: Firstly, financial fraud was briefly introduced; then, samples were selected from CSMAR database, 18 indicators related to fraud were selected from corporate tax reports, and 13 indicators were retained after information screening; finally, the XGBoost algorithm was used to recognize tax report falsification. RESULTS: The XGBoost algorithm had the highest accuracy rate (94.55%) when identifying corporate tax statement falsification, and the accuracy of the other algorithms such as the Logistic regressive algorithm were below 90%; the F1 value of the XGBoost algorithm was also high, reaching 90.1%; it also had the shortest running time (55 s). CONCLUSION: The results prove the reliability of the XGBoost algorithm in the identification of corporate tax report falsification. It can be applied in practice. [ABSTRACT FROM AUTHOR]

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This study presents a comprehensive bibliometric analysis of research on financial fraud, tax tools, and economic security. Using a dataset of articles published between 2016 and 2022, we analyzed keyword co-occurrence, journal impact, citations, and geographical and Institutional patterns. Our results identify the most productive authors and institutions, influential sources, major research themes, and potential future research directions. We find that the research on financial fraud, tax tools, and economic security is a multidisciplinary and international field, with a focus on fraud detection, and national security among others. It was also discovered that the number of publications has significantly increased year after year. Our study provides valuable insights into the current state of research on this topic and identifies opportunities for future research and innovation. The findings of this study have important implications for researchers, practitioners, and policymakers working in the field of financial fraud, tax tools, and economic security. [ABSTRACT FROM AUTHOR]

National Payment Switches (NPSs) and International Payment Switches (IPSs), including major players such as SWIFT, Mastercard, and CHIPS, have become vital to the financial infrastructure, facilitating secure and efficient transactions among local financial institutions. Nonetheless, the growing adoption of digital payments has heightened the risk of financial fraud. Consequently, NPSs, under the direct ownership of Central Banks (CBs), are increasingly adopting advanced technologies, such as cognitive computing, to bolster their fraud detection capabilities in their respective countries. This article delves into the role of cognitive computing in detecting financial fraud within NPSs. It examines the advantages of cognitive computing in recognising patterns of fraudulent behaviour and analysing vast amounts of data. Additionally, the study highlights the importance of focusing on how cognitive computing can augment traditional fraud detection methods, such as rule-based systems and data analytics. Nineteen real-world cases from eighteen countries are analysed, exploring the cognitive computing tools employed by NPSs to identify fraudulent transactions. The challenges and limitations of implementing cognitive computing in fraud detection and potential solutions to address these issues are identified. The primary assumption that cognitive computing is crucial for detecting financial fraud in NPSs is substantiated. Its ability to analyse large datasets and pinpoint patterns of fraudulent behaviour proves invaluable for financial institutions seeking to protect themselves against financial fraud in a progressively digital world. The conclusions drawn from the overview of the cases aim to identify best practices, potentially trigger new benchmarking standards, and facilitate the development of integrated cross-border solutions to combat financial fraud on a global scale effectively. The purpose of this research is to examine the role of cognitive computing in detecting financial fraud within NPSs, identify its advantages, challenges and limitations, and provide real-world case examples. [ABSTRACT FROM AUTHOR]

This study utilizes the National Financial Well-Being Survey (NFWS) from the Consumer Financial Protection Bureau (CFPB) to investigate the profiles of American consumers who experience mistreatment or a type of fraud in financial services (compromised accounts). An integrative consumer vulnerability framework was used as the theoretical framework to examine how disadvantaged consumer characteristics and vulnerable consumer characteristics are associated with mistreatment and compromised accounts. Consumers in vulnerable states, due to low financial capability, cognitive decline, material hardships, financial shocks, and more exposure to various financial services, were more likely to report experiencing mistreatment and having their financial accounts compromised. Consumers from higher socio-economic status were more likely to have been victims of mistreatment and compromised accounts in financial services. These findings offer implications for consumer financial education and protection. [ABSTRACT FROM AUTHOR]

I study the role of external auditors in the diffusion of stock-option backdating in the U.S. to explore the role of professional experts in the diffusion of innovative practices that subvert stakeholders' interests. Practices that are eventually accepted as misconduct may emerge as liminal practices--ethically and legally questionable but not clearly illegitimate or outlawed--and not be categorized as misconduct until social control agents notice, scrutinize, and react to them. I examine how the role of external auditors in the diffusion of stock-option backdating changed as the practice shifted from liminality to being illegal and illegitimate. The findings suggest that professional experts' involvement in the diffusion of liminal practices is highly responsive to the institutional environment. Initially, professional experts diffuse these practices via local networks, but when the legal environment becomes more stringent, implying that the practice will become illegitimate, experts reverse their role and extinguish the practice. The larger network remains largely uninvolved in both diffusing and extinguishing the liminal practice until the practice is publicly exposed and labeled as illegal and illegitimate. The findings further show that the diffusion and then extinguishing of backdating before it was outlawed depended on the adopter's geographic proximity to a local office of a complacent expert and on the absence of traceable communication about backdating between these offices. This combination set the stage for each office to develop independent views about backdating, leading some offices to view backdating favorably and diffuse it, and others to view it unfavorably and curtail it--even at the same time and within the same audit firm. This study contributes to research on the diffusion of misconduct by providing insight into the role of professional experts and the mechanisms and boundary conditions governing that role. [ABSTRACT FROM AUTHOR]

The article summarises the arguments and counterarguments within the scientific debate on the issue of improving the system of combating money laundering. The research's primary goal is to evaluate the system's effectiveness in combating money laundering. The study of the issue of evaluating the system's effectiveness for combating money laundering is carried out in the article in the following logical sequence: informative base forming; determination of terminal events as criteria for the system's effectiveness for combating money laundering; survival tables construction, which provide for the probability of a court verdict on financial monitoring issues; evaluation of the system's effectiveness of institutional changes in combating money laundering. Survival analysis methods or survival tables, the Kaplan-Meier method, were used to conduct the research. The developed scientific-methodical approach to evaluating the system's effectiveness for combating money laundering was approved based on financial monitoring data in Ukraine; the study period was 2009-2022. The time intervals and established probabilities of avoiding punishment for the crime of money laundering were defined based on the analysis. The authors of the article empirically determined that with an increase in the time between the time of the commission of the crime and the time of the court's conviction, the probability that the court will not be convicted decreases. If three years and seven months pass after the crime, the probability of a guilty verdict will be 50.9%. Based on the obtained calculations, the changes in the organisational and functional composition of the combating money laundering implemented in recent years could have improved the quality of combating money laundering. Further research should be directed to a detailed analysis of the structural elements in the institutional part of the system of combating money laundering to identify the weaknesses of each stage: financial monitoring, investigation and the judicial system. [ABSTRACT FROM AUTHOR]

Community-level vulnerability to pyramid scheme fraud may be affected by place-based sources of strain and opportunity. Using national victim data from a pyramid scheme fraud case from 2000–2013, this research explores pyramid scheme adoption with group-based trajectory modeling (GBTM). GBTM is used to look for distinct trajectories of pyramid scheme join rates and to explore the effect of strain, as measured by a county's Social Vulnerability Index and unemployment rate, and opportunity or protection, as measured by a series of social capital variables, on the group trajectories. Findings suggest that county-level strain, including the county's Social Vulnerability Index and unemployment rate are related to pyramid scheme victimization, especially early adoption. We also find that social capital variables – which can, in theory, reduce strain or increase opportunity – have a nuanced relationship with fraud victimization. While our findings are drawn from a single pyramid scheme, they point to the potential to analyze case data to inform preventative and monitoring strategies appropriate to local-level characteristics. [ABSTRACT FROM AUTHOR]

In today's world, financial institutions (FIs) play a pivotal role in any country's economic growth and are vital for intermediation between the providers of investable funds, such as depositors, investors and users. FIs focus on developing effective policies for financial fraud risk mitigation however, timely prediction of financial fraud risk helps overcome it effectively and efficiently. Thus, herein, we propose a novel approach for predicting financial fraud using machine learning. We have used transaction-level features of 6,362,620 transactions from a synthetic dataset and have fed them to various machine-learning classifiers. The correlation of different features is also analysed. Furthermore, around 5000 more data samples were generated using a Conditional Generative Adversarial Network for Tabular Data (CTGAN). The evaluation of the proposed predictor showed higher accuracies which outperformed the previously existing machine-learning-based approaches. Among all 27 classifiers, XGBoost outperformed all other classifiers in terms of accuracy score with 0.999 accuracies, however, when evaluated through exhaustive repeated 10-fold cross-validation, the XGBoost still gave an average accuracy score of 0.998. The findings are particularly relevant to financial institutions and are important for regulators and policymakers who aim to develop new and effective policies for risk mitigation against financial fraud. [ABSTRACT FROM AUTHOR]

Fraud is a problem that occurs in various organizations, including educational institutions. This condition is very ironic, educational institutions as institutions are required to teach anti-fraud education, but in fact, the educational institutions themselves are still fraudulent. This study aimed to explain the factors that can influence the principal, treasurer, and school committee to abuse school aid funds. The research sample was 145 principals, treasurers, and school committees for the elementary, junior high, and senior high school levels selected by convenience sampling method. All variables were measured using five Likert scales and analyzed with the multiple regression method. Instrument validity test using Pearson product-moment. This study shows that we found that pressure, internal control, integrity, and religiosity influence fraud. High financial pressures stemming from greed, a luxurious lifestyle, debt, integrity, low systems of control, and religiosity can increase fraud. These results reinforce the importance of schools or education-related regulatory agencies to be able to take policies to form a school environment that encourages honesty, limits teachers to hedonism, has a fair compensation system, and encourages teachers to practice worship, which needs to be done to avoid financial fraud from abuse of school aid funds. [ABSTRACT FROM AUTHOR]

The purpose of this study is to predict enterprises' financial fraud. After collecting financial data and employing feature selection methods, totally eight features are selected. We select two best-performance machine learning models according to five indicators including accuracy, recall, specificity, AUC and the misclassification cost. Besides, an optimal weighted machine learning model, based on the two best-performance models, is proposed and the results confirm its good performance in forecasting enterprises' financial fraud. [ABSTRACT FROM AUTHOR]

Victim service providers assist thousands of victims of crime in the United States each year. However, little is known about the extent to which these organizations serve victims of crime often perpetrated online, such as identity theft and financial fraud. Moreover, absent from the literature is an empirical assessment of what factors predict the inclusion of services for victims of these crimes. Using a sample from the 2019 National Survey of Victim Service Providers (n = 1649) the current study investigated factors related to the provision of services for victims of financial fraud and identity theft, and the number of victims served for each of these crime types. Findings suggested that certain organizational services such as providing restitution claim assistance and document replacement services were associated with greater odds providing services to financial fraud and identity theft victims. Organizational characteristics, such as having a hotline/chatline, the number of external partnerships, and the number of volunteers also predicted providing those services. The findings suggest the importance of logistical constraints on providing these services and are discussed in light of previous research on the topic, as well as policy implications and limitations. • Organizational characteristics were differentially associated with victim services. • Older agencies served greater rates of financial fraud victims. • Government agencies were more likely to serve fraud and identity theft victims. • Agencies whose primary function was victim services served fewer victims of fraud. [ABSTRACT FROM AUTHOR]

Financial fraud is more likely to spread and produce serious and adverse results through social networks. This study investigates four protection strategies: the uniform protection strategy, the random protection strategy, the targeted protection strategy, and the acquaintance protection strategy based on the potential-investor-divestor (PID) model. The simulation results show that the targeted protection strategy is the best solution for both ER and BA networks. The random protection strategy is the least efficient solution, as it requires spreading a large number of anti-fraud messages to achieve a relatively good performance. The acquaintance protection strategy performs closely to the targeted protection strategy in terms of social dynamics. However, the uniform protection strategy is better than the acquaintance protection strategy, as it involves fewer victims when it collapses. This study suggests that the regulators should protect investors from financial fraud collapses by promoting the financial literacy education and regulating the behaviors of influential people. [ABSTRACT FROM AUTHOR]