...coisas inexplicáveis e pessoas incomparáveis" como vocês! Obrigado por tudo, Filipe Abstract The Retail Banking Industry has been severely affected by fraud over the past few years. Indeed, despite all the research and systems available, fraudsters have been able to outsmart and deceive the banks and their customers. With this in mind, we intend to introduce a novel and multi-purpose technology known as Stream Computing, as the basis for a Fraud Detection solution. Indeed, we believe that this architecture will stimulate research, and more importantly organizations, to invest in Analytics and Statistical Fraud-Scoring to be used in conjunction with the already in-place preventive techniques. Therefore, in this research we explore different strategies to build a Streambased Fraud Detection solution, using advanced Data Mining Algorithms and Statistical Analysis, and show how they lead to increased accuracy in the detection of fraud by at least 78% in our reference dataset. We also discuss how a combination of these strategies can be embedded in a Stream-based application to detect fraud in real-time. From this perspective, our experiments lead to an average processing time of 111,702ms per transaction, while strategies to further improve the performance are discussed. Keywords: Fraud Detection, Stream Computing, Real-Time Analysis, Fraud, Data Mining, Retail Banking Industry, Data Preprocessing, Data Classification, Behavior-based Models, Supervised Analysis, Semi-supervised...
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...Bank Frauds “Lapses in system make easy the job of offenders to dupe banks” Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly. Fraud has not been described or discussed clearly in The Indian Penal Code but sections dealing with cheating. concealment, forgery counterfeiting and breach of trust has been discusses which leads to the act of fraud. In Contractual term as described in the Indian Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime. The number of bank frauds in India is substantial. It in increasing with the passage of time. All the major operational areas in banking represent a good opportunity for fraudsters with growing incidence being reported under deposit, loan and inter-branch accounting transactions, including remittances...
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...in the organizations, especially banks, cannot be undermined, due to the fact that the banking sector, which has a crucial role to play in the economic development of a nation is now being characterized by macro economic instability, slow growth in real economic activities, corruption and the risk of fraud. Fraud, which is the major reason for setting up on internal control system, has become a great pain in the neck of many Nigerian bank managers. It has also become an unfortunate staple in Nigeria’s international reputation. Fraud is really eating deep into the Nigerian banking system and that any bank with a weak internal control system, is dangerously exposed to bank fraud. The CBN reported that cases of attempted fraud and forgery in banks, as at half-year 2007 have surpassed what was recorded for the whole year 2006. The CBN half-year report for 2007, revealed a total of 741 cases of attempted fraud and forgery, involving 5.4 billion, $35,406.1, 150 Euros were reported as at June, 2007. In 2006, 1,193 cases were reported involving 4.6 billion, $1.8 million and 14,389.7 pound sterling. The CBN also reported that the backward development was attributable to weaknesses in the internal control systems of the banks. This has clearly pointed the picture of how fraud has penetrated in the financial strength of Nigerian Banks. In a nut-shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt...
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...Wells Fargo & Company was founded by Henry Wells and William G. Fargo on March, 1852 and is headquartered in San Francisco. Wells Fargo is a community-based financial services company with $1.9 trillion in assets. The company provides banking, insurance, investment, mortgage, and customers and commercial finance through more than 8,600 locations (See Exhibit 1) Traditionally, banking industry is a very high risky area, since the nature of the banking industry will create the incentives for people to commit the fraud. If there is a poor banking system, people will rationalize their actions by doing the wrong things. In order to ensure a fair and safety access to financial services to all Americans, maintaining the integrity of the federal banking...
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...Impact of Internal Control System in Banking Sector in Nigeria | | Olaoye Clement Olatunji | | Abstract: The Central Bank of Nigeria reported that the backward development in Nigeria was attributable to weaknesses in the internal control systems of the banks. This has clearly pointed out the picture of how fraud has been penetrated in the financial strength of Nigerian Banks. In a nut-shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt to put an end to this economic degradation, gave rise to the topic of this research study the impact of internal control in the banking sector in Nigeria with Wema Bank of Nigeria PLC as a case study. However, this study is aimed at verifying the conception that an effective and efficient internal control system is the best control measure for preventing and detecting fraud, especially in the banking sector. Data captured for this study, were analyzed through descriptive and inferential statistical methods. The descriptive analysis involves the use of percentages, tabulation and graphical presentation. While the inferential statistical method involved the use of the chi-square. The functions of fraud prevention, detection and control are interwoven, as the three works together to eliminate fraud and fraudulent tendencies. Therefore, internal control is highly significant in fraud detection and preventions in banking sector in Nigeria. | | | ...
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...ACCOUNTING INFOMRATION SYSTEM TABLE OF CONTENT INTRODUCTION ............................................................................................................................................. 2 FRAUD ........................................................................................................................................................... 3 Internal Fraud ........................................................................................................................................... 3 Procurement fraud.................................................................................................................................... 4 Online safety ............................................................................................................................................. 5 Cheque Fraud ............................................................................................................................................ 5 INTRODUCTION OF COMPUTER VIRUS TO THE SYSTEM .............................................................................. 7 UNINTENTIONAL ACTS/MISTAKES. ............................................................................................................... 7 CONCLUSION................................................................................................................................................. 8 REFERENCES ......................................................................
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...Report on Corporate Frauds & the Role of the auditors: Bangladesh Perspective Faculty of Business Studies University of Dhaka SUBMITTED TO Tahmina Ahmed Lecturer Accounting & Information Systems University of Dhaka SUBMITTED BY Group 18 Date of submission:10.11.14 Group members Name | ID | 1.Sajjad Hossain Sohan | 18022 | 2.Rubina Akther | 18048 | 3.Mohammad Saadman | 18052 | 4.Rumi Akther | 18066 | 5.Hilary Talukder | 18099 | November 5, 2014 Tahmina Ahmed Lecturer Dept. of Accounting & Information Systems University of Dhaka Subject: Submission of report on “Corporate fraud & the role of the auditor: Bangladesh Perspective” Dear Sir, We are honored and pleased to inform you that as per the requirements, we worked on the issue of the preparation of a report based on the corporate frauds & the role of the auditor in Bangladesh perspective. To fulfill the report objective, we analyzed & reviewed some of the secondary information available on the internet related to the topic.. Based on our classroom knowledge on the related issues, we tried to make the report as specific and unique as possible. We humbly submit this report for your review and feedback. Preparation of this report demanded a minimum level of working knowledge of the process of audit & assurance . We also tried to follow your instructions properly now and when necessary. We would like to request you to allow us to submit...
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...government and the community Surveys of households, businesses, offenders and victims Analysis of media reporting of crime Research methods Dissemination of findings • Reports, books, articles, conference papers, roundtables, online, media Cyber crime concepts Organised Crime e.g. OMCGs Identity Crime Cyber Crime e.g. off-line crimes e.g. ID theft Internet Crime e.g. Offensive Content Phishing Financial Crime e.g. Home renovation scams A chronology of cyber crime Cloud computing risks 2009 Wireless vulnerabilities 2007 M-commerce attacks 2006 Phishing 2002 Cyberstalking 1998 Cyberterrorism attacks 1997 Spam 1995 Identity crime 1995 Online piracy 1995 Botnets 1993 Child exploitation1990 ATM fraud 1985 Funds transfer fraud 1985 Extortion 1980 Denial of service 1980 Creeper virus 1971 Computer hacking 1970 Telemarketing scams 1965 Phreaking 1961 Organised...
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...http://www.trinity.edu/rjensen/FraudAmericanHistory.htm History of Fraud in America (Edited for use in MBA 590_ NCSU) Bob Jensen at Trinity University Colonial History Earliest "business" fraud in America centered around phony heath cures. Armstrong and Armstrong (1991) document many of the snake oil ploys that commenced soon after the Pilgrims landed on Plymouth Rock. Medical frauds ranging from deceptive medicines to spiritual cures to bloodletting expanded over time to modern day cancer miracle cures and Internet charlatanism. Since early America was largely agricultural, various land schemes accompanied the growing market for deceptive rural living and farming products. As the original 13 colonies were established land was owned by men who had been granted land from the English King. They in turn sold land to individuals and established common areas. Although many of the early dealings were legitimate, it did not take long for land swindles to commence. Swindlers were either buyers or sellers of land. Victims were often new immigrants and Indians who lived on the land before Colonial times. One of the best known frauds was the 1626 purchase of Manhattan Island for trinkets valued at 60 guilders (approximately $24). In this case the Carnarsie Indians from Brooklyn perpetrated the fraud since their land was not even connected to Manhattan Island. But in most cases it was the white men who cheated the Indians and each other. Land swindling grew rampant as America expanded...
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...Integrated Fraud Management Actimize Integrated Fraud Management solutions deliver real-time, customer-centric fraud prevention that supports a holistic, enterprise-wide fraud management program. Fully integrated channel and line-of-business specific detection solutions that seamlessly share data for true cross-channel fraud management Advanced and comprehensive set of fraud framework services that provide detection, decisioning, and operations capabilities Used by top global banks, such as Bank of America and BB&T, and recognized as Best-In-Class in Enterprise Fraud by CEB TowerGroup. Card Fraud Customer-centric, cross-channel, and cross-product fraud detection covers ATM, PIN and signature POS, and card not present transactions. Remote Banking Cross-channel models for retail online and mobile banking, call center, and IVR channels, to detect fraudulent monetary and non-monetary transactions. Commercial Banking Multi-channel monitoring and analytics for commercial banking transactions (e.g. wires, ACH, payroll) and non-monetary transactions (e.g. template creation, transaction approval) with user, account, and company-level profiling. Deposit Fraud Best practice rules and analytics for detection of suspicious incoming funds via electronic transactions and checks, to address schemes such as kiting and bust out fraud. Employee Fraud Proven rules and analytics, combined with proactive investigation tools...
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...BANKING AND FINANCE ETHICS IN THE FIELD OF CORPORATE POLICIES Corporate Ethics The broad area dealing with the way in which a company behaves towards, and conducts business with, its internal and external stakeholders, including employees, investors, creditors, customers, and regulators. In certain national systems minimum standards are required or recommended in order to eliminate potential conflicts of interest or client/employee mistreatment. Corporate Policy A formal declaration of the guiding principles and procedures by which a company will operate typically established by its board of directors or a senior management policy committee. Imbedded in corporate policy are the company's mission statement, objectives and the principles by which strategic decisions are to be made. It also forms the basis for measuring performance and ensuring accountability at all levels of the company. Financial Institution (PBCom) Company Policies: 1. PBCom First The PBCom First Policy applies to all situations where an actual or potential conflict of interest exists. Being employees of the Bank, it is every employee’s duty to ensure that their personal interests do not conflict with the duties, which they must perform for the Bank, or with the duties which the Bank performs for its clients. When such situation occurs, employees must put the Bank’s interest over and above other interests. 2. Disclosure of Information The disclosure...
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...ASSIGNMENT 1: REVIEW OF BUSINESS FRAUD ABSTRACT Business fraud is a white-collar crime that is increasing at a rapid pace. One case of business fraud dealt with an information breach within Bank of America’s information system. This breach affected over 300 Bank of America customers. Management failed to provide proper security for their information system and the sensitive information of their customers. The following assignment will give detailed specifics about the case, clarify the classification of this particular fraud, and suggest recommendations that can help prevent this fraud from reoccurring. ASSIGNMENT 1: Review of Business Fraud On May 24, 2011, an investigation was in process within the Bank of America organization for potential business fraud. A Bank of America employee had manage to copy the personal information of over 300 of the bank’s customers. The security breach allowed the Bank of America employee to communicate the sensitive information of the customers to a ring of scammers. Customer information compromised included the customers’ names, physical addresses, Social Security numbers, contact numbers, checking account numbers, savings account numbers, routing numbers, driver's license numbers, date of births, email addresses, mother's maiden names, PINs and the balances on their accounts. Scammers used this information to start up credit cards and to spend the money available on the customers’ bank accounts. The leaking of the confidential...
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...Tim Trujillo Week 6 Case Study April 14, 2013 Professor Daniel Logan 1. Do you think that this is a legitimate email? Why or why not? This actually happened to me a few months ago with my Online Bank account with Wells Fargo. I was signing into Wells Fargo’s site, and was redirected to another page. On this page I was asked for my social security number, and my driver’s license number. The page itself looked legitimate, but since I had worked in Banking for a number of years, I knew it wasn’t. A Bank will not ask you for personal information such as your social security number once your account has been established. This is also true if Bank personnel contact you by phone. They would never ask your social security number as a means to identify you. This type of fraud that was attempted on my account is called Phising. Here is Wells Fargo’s policy on Phising and email fraud: “Report Phish and Email Scams If you encounter a suspicious email or website that says it's from Wells Fargo, do not respond to it or click any links. What to do Never open attachments, click on links, or respond to emails from suspicious or unknown senders. If you receive a suspicious email that appears to be from Wells Fargo, forward the email to reportphish@wellsfargo.com What is a phish? Phish or fraudulent emails may contain links to phony websites or request you to share personal or financial information by using clever and compelling language, such as an urgent need...
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...tougher battles. (Kitten, 2012) In one such case, here in Georgia, a man has pleaded guilty for the role he played in a $1.3 million phishing scheme that targeted customers of Chase, Bank of America, ADP and Branch Bank & Trust. In his plea, Waya Nwaki admitted to using stolen log-in credentials to intercept and respond to e-mails sent by banks to customers when unfamiliar computers or IP addresses were used to access online accounts. He also admitted to impersonating payroll officers in conversations he had with ADP, which is based in New Jersey. The case resulted from a collaboration between the banks and the Federal Bureau of Investigation against Nwaki, a.k.a. Shawn Conley, who was arrested in December on charges of wire fraud conspiracy, wire fraud, aggravated identity theft, and conspiracy to gain unauthorized access to computers. Each count, to which Nwaki pleaded guilty, carries a maximum sentence of 20 years in prison and a maximum fine of $250,000; sentencing is set for Aug. 15, 2012. According to court records, Nwaki and six co-conspirators, between August 2000 and June 2010, worked across three continents to launch phishing attacks through spoofed websites designed to mimic banks and payroll processors such as ADP. When online users visited the spoofed pages, they were asked to provide confidential personal and financial information, such as dates of birth, Social Security numbers, mothers' maiden names, and online account user names and passwords. Having obtained...
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...advancements in technology, the types of criminal activities from the past have changed from breaking-and-entering and robbery at gunpoint, to complete identity theft, fraud, and robbery without lifting a finger via electronic manipulation of banking systems. To help battle these new criminal activities caused by advancements in technology, Congress passed the “Electronic Funds Transfer Act of 1978”, which establish consumer rights and protections when transferring funds via electronic systems. According to "Federal Deposit Insurance Corporation" (n.d.), “the purpose of this title to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems. The primary objective of this title, however, is the provision of individual consumer rights” (Electronic Funds Transfer Act). With the establishment of the Electronic Funds Transfer Act of 1978, a new standard was established to protect consumers from theft and illegal monetary transfers from accounts. The act established accountability and liabilities for both consumers and banking institutions to hold parties accountable for funds transfers and illegal accounting activities. Further measures were taken to restrict criminal activities with the establishment of the Computer Fraud and Abuse Act of 1986. The act establish guidance and identified misuse of electronic systems and computers for criminal activities. According to 99 Congress (1986), “the...
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