Financial Fraud Detection and Prevention: A Detailed Report

This report delves into the critical area of financial fraud detection and prevention, examining the various methods and techniques used to identify and mitigate fraudulent activities. The study begins with an introduction that provides a background on financial fraud, its impact on organizations and individuals, and the increasing importance of fraud detection in the age of advanced technology. The report then explores the concept of financial fraud, its impact, and various prevention strategies. The methodology section outlines the research approach, design, data collection process, and ethical considerations. The results and analysis chapter presents the findings of the research, including quantitative data. The discussions chapter provides an in-depth analysis of the results. The conclusion and recommendations chapter summarizes the key findings and suggests practical recommendations for companies to manage the threats and challenges associated with financial fraud. The report also includes a table of contents, references, and appendices.

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

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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

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which mainly includes the identification procedures and accurately measuring the overall
experiences (Wong and Venkatraman 2015). The development of the sophisticated tactics as it
might help in changing the approaches for the total system of financial transaction. There are
certain steps that are required to be captured within the organisation along with improving the
experiences of individual as well as of the organisations. The steps are mainly mentioned in the
following part. The primary step is to capture the data that are available in nature from different
departments and includes them in the process of analysis (Kulikova and Satdarova 2016). The
monitoring of the transaction in a continuous manner also points out in the social networks that
are high risk in nature. The culture of enterprise wide is required to be installed by the process of
data visualisation along with investigating the optimisation of workflow. The security technique
is also to be introduced with different layered as it would help in preventing the financial frauds
by use of the technology.
1.3 Aims and Objectives
The aims and objectives of the study is to point out the factors that affects the financial
frauds detection and prevention along with providing with better benefits and solution for the
issues.
The aims and objectives of the study has been mentioned and discussed in the part below.
The main aim of the study is to highlight the financial fraud detection along with its
preventive measures which would be beneficial for the company. The fraudulent exercises have
uncommon running strategies which is nearly comparative to veritable handle but certain
perspectives is required to be considered for their identification (KABUE and ADUDA 2017).
The challenges that are confronted in later a long time are required to be controlled as most of
the exchange that takes put are completely mechanized which do not any individual for its

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generally confirmation. The sheer volume of information that are generally prepared within the
genuine time are required to be upgraded with extortion location methods. The arrangement for
overseeing the errands are required to be included with exchange that takes put in that period of
time. In later a long time, the associations are introduced with certain extortion location
procedures which would automatically detect the false exercises that are reaching to take put
(Abdallah, Maarof and Zainal 2016). The mechanized extortion administration arrangement are
too accommodating which focuses out the abnormal patters which are comprise in taking note
the false exercises and solidifying the exchange some time recently it really takes place. Looking
at the authentic information over the records which primarily stops the false exercises that are
related with the commerce. Within the current world of progressed innovations, budgetary frauds
take put at most of the places beside its effect on the person and associations.
1.4 Research Questions
The following are the research questions which has been gathered from different sources
about the financial fraud detection and prevention.
1. What are the impact of financial fraud on an organisation?
2. What are the detection procedures by which financial frauds can be detected?
3. What are preventive measures for financial frauds?
1.5 Scope of the research
The research is totally based on financial fraud detection and prevention and that have
been considered in the overall study. The patters of the financial frauds that takes put
incorporates diverse perspectives that are required to be considered for the generally exercises.
The consideration of area, estimate and the in general recurrence of the exchange are required to

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be considered for identifying the frauds. More advanced measurements are required to be utilized
for showing the monetary frauds that incorporates the history of profiles of the clients (Mansor
2015). The list of the suspects are required to be kept in a secure put on which the specified is
additionally to be reviewed as per the by and large nature of the extortion together with its
location procedures. The exchange that takes put in later a long time comprise of a few dollars
that are specifically included with the method. The generally survey of the clients for the
exchange that has as of now taken put too focuses out the method of location of frauds and
anticipating it as much as conceivable (Lin et al. 2015). In current world of innovative
progression, there are distinctive methods which are competent of relieving the frauds and
avoiding them from taking put. The craftsmanship of innovation can capture the nature of the
frauds together with their fraudulent exercises.

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Chapter 2: Literature Review
This chapter mainly focused on the review of the overall literature that are included in the
research. It includes the overall concept of the topic on the research and the strategies that would
be useful for mitigating the issue. Moreover, it also deals with the impact that might affect the
event over the time and how it would also points out the benefits as well as the limitations of the
strategies.
2.1 Concept of financial fraud
The concept of financial fraud is the event where someone takes the money and other
assets from another people by the process of deception along with other criminal activity. The
detection and prevention of fraud is totally associated with certain perspective that would
beneficial for the organisation and the individuals (Sadgali, Sael and Benabbou 2019). The
overall concept of the financial fraud are associated with finances that includes money and other
form of assets which would be beneficial for their current period of time. The process of
detection and includes the technologies which would be helpful for the organisation and their
arrangement on the complex data form (Liu et al. 2015). There are different types of financial
frauds that are currently occurring in the modern world. Identity fraud is one of the common
financial fraud that takes place in most of the cases. It mainly points out to an individual who
impersonates other people and uses their secure personal information for stealing money. This
kind of activity is mainly referred to the financial fraud of identity which would be effectively
identified (Mallika 2017). This particular type of fraud mainly takes place on the field of internet
as all of the personal information are readily available on the internet. Phishing is also another
type of fraudulent activities that points out the methods of internet banking and that would be
useful for receiving the transaction details. The clients of internet banking receives the email