Financial Fraud Detection and Prevention | Research

Running head: FINANCIAL FRAUD DETECTION AND PREVENTION
Financial Fraud Detection and Prevention
Name of the Student
Name of the University
Author’s Note

FINANCIAL FRAUD DETECTION AND PREVENTION1
Acknowledgement
I would like to thank my University and the professor for allowing me to contribute as well as
providing opportunity to complete my research despite of all challenges that I have faced. It will
not forget the efforts that are made by the professors and other for guiding me with patience,
guidance and understanding. I would not have completed this research without their guidance
and understanding and you are all special to me.

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Abstract
The research is mainly focused on the financial fraud detection and prevention that are associated
with measures of prevention and detection techniques. The primary chapter is the introduction
which centres out the common data around the thought in conjunction with the company. The
targets of the research generally has been talked around in this allocate another to the research
limitations. Other than, it in development cements the research questions close to point and
targets of the research. Insides the second chapter, it contain of composing layout which centres
out the factors that are to be tended to insides the research. It join of openings and dangers
adjoining appraisal of competitive advantage and methodologies for moving forward the
execution. In chapter three, it highlights the procedure which centres out the strategies through
which the research has been conducted. It sets the considering, approach, and organize, data
collection procedure and test of the research about sheds light. The fourth chapter joins the
results around and disclosures where the results almost about are to be surveyed and checked on
as per the current circumstance which it highlights the looking over, assessment, openings,
threats and competitive methodology. Inside the final chapter, it bargains with the conclusion
nearby proposition and utilization with the concluding contemplations have been said at the side
tending to the objectives and certain recommendation. The proposal that have been illustrated
would offer help the company to administer with the threats and challenges that are going up
against in current circumstance.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.1 Background of the study........................................................................................................6
1.2 Problem statement.................................................................................................................7
1.3 Aims and Objectives..............................................................................................................8
1.4 Research Questions................................................................................................................9
1.5 Scope of the research.............................................................................................................9
Chapter 2: Literature Review.........................................................................................................11
2.1 Concept of financial fraud...................................................................................................11
2.2 Impact of financial fraud.....................................................................................................14
2.3 Prevention strategies of financial frauds..............................................................................17
Chapter 3: Research Methodology................................................................................................22
3.1 Research Onion....................................................................................................................22
3.2 Research Philosophy............................................................................................................23
3.3 Research Approach..............................................................................................................24
3.4 Research Design..................................................................................................................24
3.5 Data Collection Process.......................................................................................................25
3.6 Sampling method and sampling size...................................................................................25
3.7 Ethical Consideration...........................................................................................................26

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3.8 Summary..............................................................................................................................26
Chapter 4: Result and Analysis......................................................................................................28
Quantitative research.................................................................................................................28
Chapter 5: Discussions..................................................................................................................48
Chapter 6: Conclusion and Recommendation...............................................................................53
References and Bibliography.........................................................................................................60
Appendices....................................................................................................................................68

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Chapter 1: Introduction
Financial fraud detection and prevention is the procedure by which the both finances, as
well as the financial information are detected from being a fraud. Looking at the historical data
over the records which mainly stops the fraudulent activities that are associated with the business
(Olukowade and Balogun 2015). In the current world of advanced technologies, financial frauds
take place at most of the places along with its impact on the individual and organisations. In
recent years, the organisations are installed with certain fraud detection techniques which would
automatically detect the fraudulent activities that are going to take place. The automated fraud
management solution are also helpful which points out the unusual patters which are consist in
noticing the fraudulent activities and freezing the transaction before it actually takes place
(Othman et al. 2015). The fraudulent activities have special running methods which is almost
similar to genuine process but certain aspects is required to be considered for their identification.
The challenges that are faced in recent years are required to be controlled as most of the
transaction that takes place are fully automated which do not any person for its overall
verification. The sheer volume of data that are generally processed in the real time are required
to be enhanced with fraud detection techniques (Imam, Kumshe and Jajere 2015). The solution
for managing the tasks are required to be included with transaction that takes place in that period
of time.
In current world of technological advancement, there are different procedures which are
capable of mitigating the frauds and preventing them from taking place. The art of technology
can capture the nature of the frauds along with their fraudulent activities (Joseph, Albert and
Byaruhanga 2015). The transaction that takes place in recent years consist of several dollars that
are directly included with the method. The overall review of the customers for the transaction

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that has already taken place also points out the process of detection of frauds and preventing it as
much as possible. The patters of the financial frauds that takes place includes different aspects
that are required to be considered for the overall activities (Herawati 2015). The inclusion of
location, size and the overall frequency of the transaction are required to be considered for
detecting the frauds. More sophisticated metrics are required to be used for presenting the
financial frauds that includes the history of profiles of the customers (Enofe, Omagbon and
Ehigiator 2015). The list of the suspects are required to be kept in a safe place on which the
required is also to be reviewed as per the overall nature of the fraud along with its detection
techniques.
1.1 Background of the study
The research mainly highlights the financial frauds detection and prevention in which the
methods and the techniques have been discussed. It also includes the uniqueness of the fraud
detection techniques along with the prevention methods that are useful in mitigating the financial
loss (Zamzami, Nusa and Timur 2016). The research also sheds the light on the financial frauds
that mainly takes in place in recent world with implementation of advanced technologies which
would be helpful in preventing the financial frauds. The list of the suspect behaviour is required
to be kept which would combined to all of the issues that have been faced by the organisations
(Simha and Satyanarayan 2016). The database of the query for each of the transactions mainly
points out the detection of frauds which is required to be enables with the prevention system and
that have to be associated with faster process of massive amount of data (West and Bhattacharya
2016). The various sources of database is also required to be highlighted which includes the real
time solutions with batch data integration along with out of the box scenario for faster alerts.

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The prevention of fraud is the technology that are required to be made with enormous
stride from the process of advanced computing and other form of machine learning. The forms of
artificial intelligence touches the every areas of live which are required to be raised with prices
and payment of goods and services (Mangala and Kumari 2015). In this case, the financial fraud
might happen which are required to be associated with the cost of the transactions that has
already taken place. The waste and abuse of improper payments is mainly referred as the fraud
which is also fragmented with the prevention with using of the rules. The different set of data is
also responsible for cross referencing the conventional tactics that are required to be associated
with the method of fraud detection (Bănărescu 2015). The overall development of the new
technologies are more inclined towards the frauds that are occurred in the organisations in real
time. The process of prevention of fraud is more like pay and chase which are required to be
traced and detected at a correct time. The complexities that have grown in the recent world are
mainly the state sponsored terrorism that are required to be included with the professional
criminals (McMahon et al. 2016). These criminals are expert in making financial frauds and that
particular fraud is required to be detected and prevented as early as possible. The comprehensive
approach of matching of data along with the activities that are associated with the fraud detection
is to be identified. The abnormal nature of the activities mainly refers to the frauds that points out
the sophisticated tactics which would be useful in digital event of data (Gbegi and Adebisi 2015).
Any kind of changes in the overall approaches also highlights the authentication, access,
location, devices and others.
1.2 Problem statement
The problem that is associated with the research mainly lies in the context itself which
mainly points out the fraudulent activities. The fraudulent activities are required to be stopped