Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 29

Search results for: fraud

29 A Study of Management Principles Incorporating Corporate Governance and Advocating Ethics to Reduce Fraud at a South African Bank

Authors: Roshan Jelal, Charles Mbohwa

Abstract:

In today’s world, internal fraud remains one of the most challenging problems within companies worldwide and despite investment in controls and attention given to the problem, the instances of internal fraud has not abated. To the contrary it appears that internal fraud is on the rise especially in the wake of the economic downturn.

Leadership within companies believes that the more sophisticated the controls employed the less likely it would be for employees to pilfer. This is a very antiquated view as investment in controls may not be enough to curtail internal fraud; however, ensuring that a company drives the correct culture and behavior within the organization is likely to yield desired results.

This research aims to understand how creating a strong ethical culture and embedding the principle of good corporate governance impacts on levels of internal fraud with an organization (a South African Bank).

Keywords: Internal Fraud, Corporate Governance, Ethics, South African Reserve Bank, The King Code.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1829
28 Corporate Fraud: An Analysis of Malaysian Securities Commission Enforcement Releases

Authors: Raziah Bi Mohamed Sadique, Jamal Roudaki, Murray B. Clark, Norhayati Alias

Abstract:

Economic crime (i.e. corporate fraud) has a significant impact on business. This study analyzes the fraud cases reported by the Malaysian Securities Commission. Frauds involving market manipulation and/or illegal share trading are the most common types of fraud reported over the 6 years analyzed. The highest number of frauds reported involved investment and fund holding companies. Alarmingly the results indicate quite a high number of frauds cases are committed by management. The higher number of Chinese perpetrators may be due to fact that they are the dominant group in Malaysian business. The result also shows that more than half of companies involved with fraud are privately held companies in the investment/fund/finance sector. The results of this study highlight general characteristic of perpetrators (person and company) that commit fraud which could help the regulators in their monitoring and enforcement activities. To investors, this would help in analyzing their business investment or portfolio risk.

Keywords: Corporate fraud, economic crime, fraudcharacteristic, perpetrators

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4996
27 The Application of Fuzzy Set Theory to Mobile Internet Advertisement Fraud Detection

Authors: Jinming Ma, Tianbing Xia, Janusz R. Getta

Abstract:

This paper presents the application of fuzzy set theory to implement of mobile advertisement anti-fraud systems. Mobile anti-fraud is a method aiming to identify mobile advertisement fraudsters. One of the main problems of mobile anti-fraud is the lack of evidence to prove a user to be a fraudster. In this paper, we implement an application by using fuzzy set theory to demonstrate how to detect cheaters. The advantage of our method is that the hardship in detecting fraudsters in small data samples has been avoided. We achieved this by giving each user a suspicious degree showing how likely the user is cheating and decide whether a group of users (like all users of a certain APP) together to be fraudsters according to the average suspicious degree. This makes the process more accurate as the data of a single user is too small to be predictable.

Keywords: Mobile internet, advertisement, anti-fraud, fuzzy set theory.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 197
26 Sonic Therapeutic Intervention for Preventing Financial Fraud: A Phenomenological Study

Authors: Vasudev Das

Abstract:

The specific problem is that private and public organizational leaders often do not understand the importance of sonic therapeutic intervention in preventing financial fraud. The study aimed to explore sonic therapeutic intervention practitioners' lived experiences regarding the value of sonic therapeutic intervention in preventing financial fraud. The data collection methods were semi-structured interviews of purposeful samples and documentary reviews, which were analyzed thematically. Four themes emerged from the analysis of interview transcription data: Sonic therapeutic intervention enabled self-control, pro-spiritual values, consequentiality mindset, and post-conventional consciousness. The itemized four themes helped non-engagement in financial fraud. Implications for positive social change include enhanced financial fraud management, more significant financial leadership, and result-oriented decision-taking in the financial market. Also, the study results can improve the increased de-escalation of anxiety/stress associated with defrauding.

Keywords: consciousness, consequentiality, rehabilitation, reintegration

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 133
25 Why do Clawback Provisions Affect Financial Reporting Quality? - An Analysis of Trigger Effects

Authors: Yu-Chun Lin

Abstract:

We identify clawback triggers from firms- proxy statements (Form DEF 14A) and use the likelihood of restatements to proxy for financial reporting quality. Based on a sample of 578 U.S. firms that voluntarily adopt clawback provisions during 2003-2009, when restatement-based triggers could be decomposed into two types: fraud and unintentional error, and we do observe the evidence that using fraud triggers is associated with high financial reporting quality. The findings support that fraud triggers can enhance deterrent effect of clawback provision by establishing a viable disincentive against fraud, misconduct, and otherwise harmful acts. These results are robust to controlling for the compensation components, to different sample specifications and to a number of sensitivity.

Keywords: Accruals quality, Clawback provisions, Compensation, Restatements.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2302
24 Insurance Fraud Management as an Integrated Part of Business Intelligence Framework

Authors: Pavel Pešout, Miroslav Andrle

Abstract:

Frauds in insurance industry are one of the major sources of operational risk of insurance companies and constitute a significant portion of their losses. Every reasonable company on the market aims for improving their processes of uncovering frauds and invests their resources to reduce them. This article is addressing fraud management area from the view of extension of existing Business Intelligence solution. We describe the frame of such solution and would like to share with readers all benefits brought to insurance companies by adopting this approach in their fight against insurance frauds.

Keywords: business intelligence, insurance fraud, fraudmanagement

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1951
23 SDVAR Algorithm for Detecting Fraud in Telecommunications

Authors: Fatimah Almah Saaid, Darfiana Nur, Robert King

Abstract:

This paper presents a procedure for estimating VAR using Sequential Discounting VAR (SDVAR) algorithm for online model learning to detect fraudulent acts using the telecommunications call detailed records (CDR). The volatility of the VAR is observed allowing for non-linearity, outliers and change points based on the works of [1]. This paper extends their procedure from univariate to multivariate time series. A simulation and a case study for detecting telecommunications fraud using CDR illustrate the use of the algorithm in the bivariate setting.

Keywords: Telecommunications Fraud, SDVAR Algorithm, Multivariate time series, Vector Autoregressive, Change points.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1990
22 The Role of the Internal Audit Unit in Detecting and Preventing Fraud at Public Universities in West Java, Indonesia

Authors: Fury Khristianty Fitriyah

Abstract:

This study aims to identify the extent of the role of the Satuan Pengawas Intern (Internal Audit Unit) in detecting and preventing fraud in public universities in West Java under the Ministry of Research, Technology and Higher Education. The research method applied was a qualitative case study approach, while the unit of analysis for this study is the Internal Audit Unit at each public university. Results of this study indicate that the Internal Audit Unit is able to detect and prevent fraud within a public university environment by means of red flags to mark accounting anomalies. These stem from inaccurate budget planning that prompts inappropriate use of funds, exacerbated by late disbursements of funds, which potentially lead to fictitious transactions, and discrepancies in recording state-owned assets into a state property management system (SIMAK BMN), which, if not conducted properly, potentially causes loss to the state.

Keywords: Internal Audit Unit, efficiency, fraud, public university.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1186
21 Financial Statement Fraud: The Need for a Paradigm Shift to Forensic Accounting

Authors: Ifedapo Francis Awolowo

Abstract:

The unrelenting series of embarrassing audit failures should stimulate a paradigm shift in accounting. And in this age of information revolution, there is need for a constant improvement on the products or services one offers to the market in order to be relevant. This study explores the perceptions of external auditors, forensic accountants and accounting academics on whether a paradigm shift to forensic accounting can reduce financial statement frauds. Through Neo-empiricism/inductive analytical approach, findings reveal that a paradigm shift to forensic accounting might be the right step in the right direction in order to increase the chances of fraud prevention and detection in the financial statement. This research has implication on accounting education on the need to incorporate forensic accounting into present day accounting curriculum. Accounting professional bodies, accounting standard setters and accounting firms all have roles to play in incorporating forensic accounting education into accounting curriculum. Particularly, there is need to alter the ISA 240 to make the prevention and detection of frauds the responsibilities of bot those charged with the management and governance of companies and statutory auditors.

Keywords: Financial statement fraud, forensic accounting, fraud prevention and detection, auditing, audit expectation gap, corporate governance.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3104
20 Secure Distance Bounding Protocol on Ultra-WideBand Based Mapping Code

Authors: Jamel Miri, Bechir Nsiri, Ridha Bouallegue

Abstract:

Ultra WidBand-IR physical layer technology has seen a great development during the last decade which makes it a promising candidate for short range wireless communications, as they bring considerable benefits in terms of connectivity and mobility. However, like all wireless communication they suffer from vulnerabilities in terms of security because of the open nature of the radio channel. To face these attacks, distance bounding protocols are the most popular counter measures. In this paper, we presented a protocol based on distance bounding to thread the most popular attacks: Distance Fraud, Mafia Fraud and Terrorist fraud. In our work, we study the way to adapt the best secure distance bounding protocols to mapping code of ultra-wideband (TH-UWB) radios. Indeed, to ameliorate the performances of the protocol in terms of security communication in TH-UWB, we combine the modified protocol to ultra-wideband impulse radio technology (IR-UWB). The security and the different merits of the protocols are analyzed.

Keywords: Distance bounding, mapping code ultra-wideband, Terrorist Fraud.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 699
19 A Comprehensive Survey on Machine Learning Techniques and User Authentication Approaches for Credit Card Fraud Detection

Authors: Niloofar Yousefi, Marie Alaghband, Ivan Garibay

Abstract:

With the increase of credit card usage, the volume of credit card misuse also has significantly increased, which may cause appreciable financial losses for both credit card holders and financial organizations issuing credit cards. As a result, financial organizations are working hard on developing and deploying credit card fraud detection methods, in order to adapt to ever-evolving, increasingly sophisticated defrauding strategies and identifying illicit transactions as quickly as possible to protect themselves and their customers. Compounding on the complex nature of such adverse strategies, credit card fraudulent activities are rare events compared to the number of legitimate transactions. Hence, the challenge to develop fraud detection that are accurate and efficient is substantially intensified and, as a consequence, credit card fraud detection has lately become a very active area of research. In this work, we provide a survey of current techniques most relevant to the problem of credit card fraud detection. We carry out our survey in two main parts. In the first part, we focus on studies utilizing classical machine learning models, which mostly employ traditional transnational features to make fraud predictions. These models typically rely on some static physical characteristics, such as what the user knows (knowledge-based method), or what he/she has access to (object-based method). In the second part of our survey, we review more advanced techniques of user authentication, which use behavioral biometrics to identify an individual based on his/her unique behavior while he/she is interacting with his/her electronic devices. These approaches rely on how people behave (instead of what they do), which cannot be easily forged. By providing an overview of current approaches and the results reported in the literature, this survey aims to drive the future research agenda for the community in order to develop more accurate, reliable and scalable models of credit card fraud detection.

Keywords: credit card fraud detection, user authentication, behavioral biometrics, machine learning, literature survey

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 66
18 Enhanced Automated Teller Machine Using Short Message Service Authentication Verification

Authors: Rasheed Gbenga Jimoh, Akinbowale Nathaniel Babatunde

Abstract:

The use of Automated Teller Machine (ATM) has become an important tool among commercial banks, customers of banks have come to depend on and trust the ATM conveniently meet their banking needs. Although the overwhelming advantages of ATM cannot be over-emphasized, its alarming fraud rate has become a bottleneck in it’s full adoption in Nigeria. This study examined the menace of ATM in the society another cost of running ATM services by banks in the country. The researcher developed a prototype of an enhanced Automated Teller Machine Authentication using Short Message Service (SMS) Verification. The developed prototype was tested by Ten (10) respondents who are users of ATM cards in the country and the data collected was analyzed using Statistical Package for Social Science (SPSS). Based on the results of the analysis, it is being envisaged that the developed prototype will go a long way in reducing the alarming rate of ATM fraud in Nigeria.

Keywords: ATM, ATM Fraud, E-banking, Prototyping.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1977
17 A Novel Approach to Avoid Billing Attack on VOIP System

Authors: Narendra M. Shekokar, Satish R. Devane

Abstract:

In a recent year usage of VoIP subscription has increased tremendously as compare to Public Switching Telephone System(PSTN). A VoIP subscriber would like to know the exact tariffs of the calls made using VoIP. As the usage increases, the rate of fraud is also increases, causing users complain about excess billing. This in turn hampers the growth of VoIP .This paper describe the common frauds and attack on VoIP based system and make an attempt to solve the billing attack by creating secured channel between caller and callee.

Keywords: VoIP, Billing-fraud, SSL/TLS, MITM, Replay-attack.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1449
16 Forecasting Fraudulent Financial Statements using Data Mining

Authors: S. Kotsiantis, E. Koumanakos, D. Tzelepis, V. Tampakas

Abstract:

This paper explores the effectiveness of machine learning techniques in detecting firms that issue fraudulent financial statements (FFS) and deals with the identification of factors associated to FFS. To this end, a number of experiments have been conducted using representative learning algorithms, which were trained using a data set of 164 fraud and non-fraud Greek firms in the recent period 2001-2002. The decision of which particular method to choose is a complicated problem. A good alternative to choosing only one method is to create a hybrid forecasting system incorporating a number of possible solution methods as components (an ensemble of classifiers). For this purpose, we have implemented a hybrid decision support system that combines the representative algorithms using a stacking variant methodology and achieves better performance than any examined simple and ensemble method. To sum up, this study indicates that the investigation of financial information can be used in the identification of FFS and underline the importance of financial ratios.

Keywords: Machine learning, stacking, classifier.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2797
15 A Rule-based Approach for Anomaly Detection in Subscriber Usage Pattern

Authors: Rupesh K. Gopal, Saroj K. Meher

Abstract:

In this report we present a rule-based approach to detect anomalous telephone calls. The method described here uses subscriber usage CDR (call detail record) data sampled over two observation periods: study period and test period. The study period contains call records of customers- non-anomalous behaviour. Customers are first grouped according to their similar usage behaviour (like, average number of local calls per week, etc). For customers in each group, we develop a probabilistic model to describe their usage. Next, we use maximum likelihood estimation (MLE) to estimate the parameters of the calling behaviour. Then we determine thresholds by calculating acceptable change within a group. MLE is used on the data in the test period to estimate the parameters of the calling behaviour. These parameters are compared against thresholds. Any deviation beyond the threshold is used to raise an alarm. This method has the advantage of identifying local anomalies as compared to techniques which identify global anomalies. The method is tested for 90 days of study data and 10 days of test data of telecom customers. For medium to large deviations in the data in test window, the method is able to identify 90% of anomalous usage with less than 1% false alarm rate.

Keywords: Subscription fraud, fraud detection, anomalydetection, maximum likelihood estimation, rule based systems.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2617
14 Machine Learning Facing Behavioral Noise Problem in an Imbalanced Data Using One Side Behavioral Noise Reduction: Application to a Fraud Detection

Authors: Salma El Hajjami, Jamal Malki, Alain Bouju, Mohammed Berrada

Abstract:

With the expansion of machine learning and data mining in the context of Big Data analytics, the common problem that affects data is class imbalance. It refers to an imbalanced distribution of instances belonging to each class. This problem is present in many real world applications such as fraud detection, network intrusion detection, medical diagnostics, etc. In these cases, data instances labeled negatively are significantly more numerous than the instances labeled positively. When this difference is too large, the learning system may face difficulty when tackling this problem, since it is initially designed to work in relatively balanced class distribution scenarios. Another important problem, which usually accompanies these imbalanced data, is the overlapping instances between the two classes. It is commonly referred to as noise or overlapping data. In this article, we propose an approach called: One Side Behavioral Noise Reduction (OSBNR). This approach presents a way to deal with the problem of class imbalance in the presence of a high noise level. OSBNR is based on two steps. Firstly, a cluster analysis is applied to groups similar instances from the minority class into several behavior clusters. Secondly, we select and eliminate the instances of the majority class, considered as behavioral noise, which overlap with behavior clusters of the minority class. The results of experiments carried out on a representative public dataset confirm that the proposed approach is efficient for the treatment of class imbalances in the presence of noise.

Keywords: Machine learning, Imbalanced data, Data mining, Big data.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 438
13 Cooperative Movements in Malaysia: The Issue of Governance

Authors: Intan Waheedah Othman, Maslinawati Mohamad, Azizah Abdullah

Abstract:

Cooperative organizations in Malaysia are going through a phase of rapid growth. They are seen by the government as another crucial vehicle to drive and boost up the country-s economical development and growth. Hence, the issue of cooperative governance is of great importance. Unlike literatures on corporate governance for public listed companies-, literatures on governance for social enterprises, in particular the cooperative organizations are still at the early stage in Malaysia and very scant in number. This paper will look into current practices as well as issues and challenges related to cooperative governance. The need for a better solution towards forming best practices of cooperative governance framework appears imperative in deterring cases of mismanagement and fraud.

Keywords: Cooperative, Governance, Issues, Malaysia.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4544
12 Managing Legal, Consumers and Commerce Risks in Phishing

Authors: Dinna N. M. N., Leau Y. B., Habeeb S. A. H., Yanti A. S.

Abstract:

Phishing scheme is a new emerged security issue of E-Commerce Crime in globalization. In this paper, the legal scaffold of Malaysia, United States and United Kingdom are analyzed and followed by discussion on critical issues that rose due to phishing activities. The result revealed that inadequacy of current legal framework is the main challenge to govern this epidemic. However, lack of awareness among consumers, crisis on merchant-s responsibility and lack of intrusion reports and incentive arrangement contributes to phishing proliferating. Prevention is always better than curb. By the end of this paper, some best practices for consumers and corporations are suggested.

Keywords: Phishing, Online Fraud, Business risks, Consumers privacy, Legal Issue, Cyber law.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2036
11 Design and Implementation of an Image Based System to Enhance the Security of ATM

Authors: Seyed Nima Tayarani Bathaie

Abstract:

In this paper, an image-receiving system was designed and implemented through optimization of object detection algorithms using Haar features. This optimized algorithm served as face and eye detection separately. Then, cascading them led to a clear image of the user. Utilization of this feature brought about higher security by preventing fraud. This attribute results from the fact that services will be given to the user on condition that a clear image of his face has already been captured which would exclude the inappropriate person. In order to expedite processing and eliminating unnecessary ones, the input image was compressed, a motion detection function was included in the program, and detection window size was confined.

Keywords: Face detection algorithm, Haar features, Security of ATM.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1905
10 Efficacy of Anti-phishing Measures and Strategies - A Research Analysis

Authors: Gundeep Singh Bindra

Abstract:

Statistics indicate that more than 1000 phishing attacks are launched every month. With 57 million people hit by the fraud so far in America alone, how do we combat phishing?This publication aims to discuss strategies in the war against Phishing. This study is an examination of the analysis and critique found in the ways adopted at various levels to counter the crescendo of phishing attacks and new techniques being adopted for the same. An analysis of the measures taken up by the varied popular Mail servers and popular browsers is done under this study. This work intends to increase the understanding and awareness of the internet user across the globe and even discusses plausible countermeasures at the users as well as the developers end. This conceptual paper will contribute to future research on similar topics.

Keywords: Anti-phishing, countermeasures, effectiveness, fake pages, security analysis.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2518
9 Categories of Botnet: A Survey

Authors: D. Seenivasan, K. Shanthi

Abstract:

Botnets are one of the most serious and widespread cyber threats. Today botnets have been facilitating many cybercrimes, especially financial, top secret thefts. Botnets can be available for lease in the market and are utilized by the cybercriminals to launch massive attacks like DDoS, click fraud, phishing attacks etc., Several large institutions, hospitals, banks, government organizations and many social networks such as twitter, facebook etc., became the target of the botmasters. Recently, noteworthy researches have been carried out to detect bot, C&C channels, botnet and botmasters. Using many sophisticated technologies, botmasters made botnet a titan of the cyber world. Innumerable challenges have been put forth by the botmasters to the researchers in the detection of botnet. In this paper we present a survey of different types of botnet C&C channels and also provide a comparison of various botnet categories. Finally we hope that our survey will create awareness for forthcoming botnet research endeavors.

Keywords: Bot, Botmaster, Botnet, Botnet cloud, Mobile Botnet.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3852
8 Cyber Security in Nigeria: A Collaboration between Communities and Professionals

Authors: K. Alese Boniface, K. Adu Michael, K. Owa Victor

Abstract:

Security can be defined as the degree of resistance to, or protection from harm. It applies to any vulnerable and valuable assets, such as persons, dwellings, communities, nations or organizations. Cybercrime is any crime committed or facilitated via the Internet. It is any criminal activity involving computers and networks. It can range from fraud to unsolicited emails (spam). It includes the distant theft of government or corporate secrets through criminal trespass into remote systems around the globe. Nigeria like any other nations of the world is currently having her own share of the menace that has been used even as tools by terrorists. This paper is an attempt at presenting cyber security as an issue that requires a coordinated national response. It also acknowledges and advocates the key roles to be played by stakeholders and the importance of forging strong partnerships to prevent and tackle cybercrime in Nigeria. 

Keywords: Security, Cybercrime, Internet, Government, Stakeholders, Partnerships.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2535
7 A Heuristics Approach for Fast Detecting Suspicious Money Laundering Cases in an Investment Bank

Authors: Nhien-An Le-Khac, Sammer Markos, M-Tahar Kechadi

Abstract:

Today, money laundering (ML) poses a serious threat not only to financial institutions but also to the nation. This criminal activity is becoming more and more sophisticated and seems to have moved from the cliché of drug trafficking to financing terrorism and surely not forgetting personal gain. Most international financial institutions have been implementing anti-money laundering solutions (AML) to fight investment fraud. However, traditional investigative techniques consume numerous man-hours. Recently, data mining approaches have been developed and are considered as well-suited techniques for detecting ML activities. Within the scope of a collaboration project for the purpose of developing a new solution for the AML Units in an international investment bank, we proposed a data mining-based solution for AML. In this paper, we present a heuristics approach to improve the performance for this solution. We also show some preliminary results associated with this method on analysing transaction datasets.

Keywords: data mining, anti money laundering, clustering, heuristics.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3299
6 Design and Implementation of Secure Electronic Payment System (Client)

Authors: Pyae Pyae Hun

Abstract:

Secure electronic payment system is presented in this paper. This electronic payment system is to be secure for clients such as customers and shop owners. The security architecture of the system is designed by RC5 encryption / decryption algorithm. This eliminates the fraud that occurs today with stolen credit card numbers. The symmetric key cryptosystem RC5 can protect conventional transaction data such as account numbers, amount and other information. This process can be done electronically using RC5 encryption / decryption program written by Microsoft Visual Basic 6.0. There is no danger of any data sent within the system being intercepted, and replaced. The alternative is to use the existing network, and to encrypt all data transmissions. The system with encryption is acceptably secure, but that the level of encryption has to be stepped up, as computing power increases. Results In order to be secure the system the communication between modules is encrypted using symmetric key cryptosystem RC5. The system will use simple user name, password, user ID, user type and cipher authentication mechanism for identification, when the user first enters the system. It is the most common method of authentication in most computer system.

Keywords: A 128-bit block cipher, Microsoft visual basic 6.0, RC5 encryption /decryption algorithm and TCP/IP protocol.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2115
5 Advanced Geolocation of IP Addresses

Authors: Robert Koch, Mario Golling, Gabi Dreo Rodosek

Abstract:

Tracing and locating the geographical location of users (Geolocation) is used extensively in todays Internet. Whenever we, e.g., request a page from google we are - unless there was a specific configuration made - automatically forwarded to the page with the relevant language and amongst others, dependent on our location identified, specific commercials are presented. Especially within the area of Network Security, Geolocation has a significant impact. Because of the way the Internet works, attacks can be executed from almost everywhere. Therefore, for an attribution, knowledge of the origination of an attack - and thus Geolocation - is mandatory in order to be able to trace back an attacker. In addition, Geolocation can also be used very successfully to increase the security of a network during operation (i.e. before an intrusion actually has taken place). Similar to greylisting in emails, Geolocation allows to (i) correlate attacks detected with new connections and (ii) as a consequence to classify traffic a priori as more suspicious (thus particularly allowing to inspect this traffic in more detail). Although numerous techniques for Geolocation are existing, each strategy is subject to certain restrictions. Following the ideas of Endo et al., this publication tries to overcome these shortcomings with a combined solution of different methods to allow improved and optimized Geolocation. Thus, we present our architecture for improved Geolocation, by designing a new algorithm, which combines several Geolocation techniques to increase the accuracy.

Keywords: IP geolocation, prosecution of computer fraud, attack attribution, target-analysis

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4412
4 Examining Corporate Tax Evaders: Evidence from the Finalized Audit Cases

Authors: Ming Ling Lai, Zalilawati Yaacob, Normah Omar, Norashikin Abdul Aziz, Bee Wah Yap

Abstract:

This paper aims to (1) analyze the profiles of transgressors (detected evaders); (2) examine reason(s) that triggered a tax audit, causes of tax evasion, audit timeframe and tax penalty charged; and (3) to assess if tax auditors followed the guidelines as stated in the 'Tax Audit Framework' when conducting tax audits. In 2011, the Inland Revenue Board Malaysia (IRBM) had audited and finalized 557 company cases. With official permission, data of all the 557 cases were obtained from the IRBM. Of these, a total of 421 cases with complete information were analyzed. About 58.1% was small and medium corporations and from the construction industry (32.8%). The selection for tax audit was based on risk analysis (66.8%), information from third party (11.1%), and firm with low profitability or fluctuating profit pattern (7.8%). The three persistent causes of tax evasion by firms were over claimed expenses (46.8%), fraudulent reporting of income (38.5%) and overstating purchases (10.5%). These findings are consistent with past literature. Results showed that tax auditors took six to 18 months to close audit cases. More than half of tax evaders were fined 45% on additional tax raised during audit for the first offence. The study found tax auditors did follow the guidelines in the 'Tax Audit Framework' in audit selection, settlement and penalty imposition.

Keywords: Corporate tax fraud, tax non-compliance, tax evasion, tax audit, fraudulent reporting.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 3198
3 Quality Management in Spice Paprika Production as a Synergy of Internal and External Quality Measures

Authors: É. Kónya, E. Szabó, I. Bata-Vidács, T. Deák, M. Ottucsák, N. Adányi, A. Székács

Abstract:

Spice paprika is a major spice commodity in the European Union (EU), produced locally and imported from non-EU countries, reported not only for chemical and microbiological contamination, but also for fraud. The effective interaction between producers’ quality management practices and government and EU activities is described on the example of spice paprika production and control in Hungary, a country of leading spice paprika producer and per capita consumer in Europe. To demonstrate the importance of various contamination factors in the Hungarian production and EU trade of spice paprika, several aspects concerning food safety of this commodity are presented. Alerts in the Rapid Alert System for Food and Feed (RASFF) of the EU between 2005 and 2013, as well as Hungarian state inspection results on spice paprika in 2004 are discussed, and quality non-compliance claims regarding spice paprika among EU member states are summarized in by means of network analysis. Quality assurance measures established along the spice paprika production technology chain at the leading Hungarian spice paprika manufacturer, Kalocsai Fűszerpaprika Zrt. are surveyed with main critical control points identified. The structure and operation of the Hungarian state food safety inspection system is described. Concerted performance of the latter two quality management systems illustrates the effective interaction between internal (manufacturer) and external (state) quality control measures.

Keywords: Spice paprika, quality control, reporting mechanisms, RASFF, vulnerable points, HACCP, BRC Global Standard.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1679
2 Internal Accounting Controls

Authors: Alireza Azimi Sani , Shahram Chaharmahalie

Abstract:

Internal controls of accounting are an essential business function for a growth-oriented organization, and include the elements of risk assessment, information communications and even employees' roles and responsibilities. Internal controls of accounting systems are designed to protect a company from fraud, abuse and inaccurate data recording and help organizations keep track of essential financial activities. Internal controls of accounting provide a streamlined solution for organizing all accounting procedures and ensuring that the accounting cycle is completed consistently and successfully. Implementing a formal Accounting Procedures Manual for the organization allows the financial department to facilitate several processes and maintain rigorous standards. Internal controls also allow organizations to keep detailed records, manage and organize important financial transactions and set a high standard for the organization's financial management structure and protocols. A well-implemented system also reduces the risk of accounting errors and abuse. A well-implemented controls system allows a company's financial managers to regulate and streamline all functions of the accounting department. Internal controls of accounting can be set up for every area to track deposits, monitor check handling, keep track of creditor accounts, and even assess budgets and financial statements on an ongoing basis. Setting up an effective accounting system to monitor accounting reports, analyze records and protect sensitive financial information also can help a company set clear goals and make accurate projections. Creating efficient accounting processes allows an organization to set specific policies and protocols on accounting procedures, and reach its financial objectives on a regular basis. Internal accounting controls can help keep track of such areas as cash-receipt recording, payroll management, appropriate recording of grants and gifts, cash disbursements by authorized personnel, and the recording of assets. These systems also can take into account any government regulations and requirements for financial reporting.

Keywords: Internal controls, risk assessment, financial management.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1811
1 Civic E-Participation in Central and Eastern Europe: A Comparative Analysis

Authors: Izabela Kapsa

Abstract:

Civic participation is an important aspect of democracy. The contemporary model of democracy is based on citizens' participation in political decision-making (deliberative democracy, participatory democracy). This participation takes many forms of activities like display of slogans and symbols, voting, social consultations, political demonstrations, membership in political parties or organizing civil disobedience. The countries of Central and Eastern Europe after 1989 are characterized by great social, economic and political diversity. Civil society is also part of the process of democratization. Civil society, funded by the rule of law, civil rights, such as freedom of speech and association and private ownership, was to play a central role in the development of liberal democracy. Among the many interpretations of concepts, defining the concept of contemporary democracy, one can assume that the terms civil society and democracy, although different in meaning, nowadays overlap. In the post-communist countries, the process of shaping and maturing societies took place in the context of a struggle with a state governed by undemocratic power. State fraud or repudiation of the institution is a representative state, which in the past was the only way to manifest and defend its identity, but after the breakthrough became one of the main obstacles to the development of civil society. In Central and Eastern Europe, there are many obstacles to the development of civil society, for example, the elimination of economic poverty, the implementation of educational campaigns, consciousness-related obstacles, the formation of social capital and the deficit of social activity. Obviously, civil society does not only entail an electoral turnout but a broader participation in the decision-making process, which is impossible without direct and participative democratic institutions. This article considers such broad forms of civic participation and their characteristics in Central and Eastern Europe. The paper is attempts to analyze the functioning of electronic forms of civic participation in Central and Eastern European states. This is not accompanied by a referendum or a referendum initiative, and other forms of political participation, such as public consultations, participative budgets, or e-Government. However, this paper will broadly present electronic administration tools, the application of which results from both legal regulations and increasingly common practice in state and city management. In the comparative analysis, the experiences of post-communist bloc countries will be summed up to indicate the challenges and possible goals for further development of this form of citizen participation in the political process. The author argues that for to function efficiently and effectively, states need to involve their citizens in the political decision-making process, especially with the use of electronic tools.

Keywords: Central and Eastern Europe, e-participation, e-government, post-communism.

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 695