Tag Archives: Financial Fraud

Data Mining Technology and Its Role in Discovering Financial Fraud (Published)

The basis of any business – the customer database, which provides information about the client relationship with the company. The increasing complexity of organizational processes and rapidly changing business environment led to strong growth in domestic corporate data companies. In this regard, the increasing interest from the point of view of fraud risk assessments are beginning to provide tools such as data mining (Forensic Data Analytics – FDA), which allows you to narrow sample of suspicious transactions while minimizing the volume of checks. For example, in the field of communication in the database stores information about the conclusion of agreements for the use of services, the time of termination of the contract, a region rate, etc. The analysis revealed 7 out of 31 dentists who deliberately overstate the value of work performed by the insurance.

K-means algorithm using the algorithm of k-means as 4 clusters formed:

  • Cluster 1: specialized work using expensive additional procedures, the average age of the client – 25, the average cost of services – $ 715;
  • Cluster 2: minor works without the use of additional procedures, the average age of the client – 21, the average cost of services – $ 286;
  • Cluster 3: Significant work using expensive additional procedures, the average age of the client – 38, the average cost of services – $ 819;
  • Cluster 4: Significant work with cheap additional procedures, the average age of the client – 27, the average cost of services – $ 551.

Keywords: Cluster Algorithms, Data Miner., Data mining, Financial Fraud, K-Means Algorithm

Forensic Auditing and Financial Fraud in Nigerian Deposit Money Banks (DMBS) (Published)

This study examined the effect of forensic auditing on financial fraud in Nigerian (DMBs). The study adopted cross sectional survey design. The population of the study comprised the staff of banks and audit firms in Abeokuta, Ogun State. The study used purposive sampling technique for questionnaire administration while logistic regression analysis was used for data analysis. The results of the study revealed that forensic audit has significant effect on financial fraud control in Nigerian (DMBs) with P value (0.007) which is less than 0.05 and that forensic audit report significantly enhances court adjudication on financial fraud in Nigeria with P value (0.000) which is less than 0.05. The study concluded that the application of forensic audit to tackle financial fraud in Nigerian (DMBs) is still at the infant stage. The study recommended that organisations should have a strong internal control system in place to reduce the occurrence of fraud.

Keywords: Financial Fraud, Forensic Audit, Litigation and Organisations’ Failure, Nigerian DMBs