• Journal of the Korea society of information convergence
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• v.7 no.1
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• pp.25-46
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• 2014

After examining the current situations of financial frauds and the reasons for their occurrence in the financial institutions through examples of financial frauds in domestic and abroad, this study presents ways to prevent such financial scams. The preventive measures consist of activities before and after the occurrence of financial frauds and during normal financial operations. The activities are as follows: 1. Preventive activity should be strengthened before the occurrence of financial frauds. That is, first, the enforcement of consistent internal control is needed. Second, in order to block the probability of financial frauds involved with employees, ethics education and a reward program for inside tippers need to be run. Third, financial institutions need to apply for comprehensive insurance policy to minimize the lost in case. 2. Preventive activity should be strengthened during normal financial operations. First, self authentication system for customers needs to be introduced. Second, dealings of day, week, and month need to be thoroughly checked and the system of audit needs to be expanded. Third, message service for the information on financial frauds and their preventive measures needs to be expanded. Fourth, public notification system against examples of financial frauds needs to be expanded. 3. Preventive activity after the occurrence of financial frauds should be strengthened. First, awareness for preventive measures such as imposing penalty on the manager needs to be enhanced. Second, strict restrictions on financial frauders such as a criminal charge needs to be strengthened. Third, there should be legal devices and resolutions in order to retrieve all the money deceived by financial frauds.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.16 no.6
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• pp.255-264
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• 2016

Due to the development of information and communication technology, the great change on economics has grown and the biggest change is the e-commerce. With the methods of electronic financial frauds becoming advanced, reported phishing incidents have greatly increased. The Fraud Detection System(hereafter FDS) has taken effect to prevent electronic financial frauds, but economic losses still occurring. This Paper aims to analyze the financial environment, financial information technology environment, financial information technology security environment and some features of the institutional changes. In order to supplement the defect of FDS, it gives some recommendations for the improvement of the effective FDS Management System and information sharing on frauds with some public institution and a major consideration for collection or utilization of personal information.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.22 no.4
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• pp.851-868
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• 2012

After the financial crisis in 2008, the financial market still seems to be unstable with expanding the insolvency of the financial companies' real estate project financing loan in the aftermath of the lasted real estate recession. Especially after the illegal actions of people's financial institutions disclosed, while increased the anxiety of economic subjects about financial markets and weighted in the confusion of financial markets, the potential risk for the overall national economy is increasing. Thus as economic recession prolongs, the people's financial institutions having a weak profit structure and financing ability commit illegal acts in a variety of ways in order to conceal insolvent assets. Especially it is hard to find the loans of shareholder and the same borrower sharing credit risk in advance because most of them usually use a third-party's name bank account. Therefore, in order to effectively detect the fraud under other's name, it is necessary to analyze by clustering the borrowers high-related to a particular borrower through an analysis of association between the whole borrowers. In this paper, we introduce Analysis Techniques for detecting financial loan frauds in advance through an analysis of association between the whole borrowers by extending SNA(social network analysis) which is being studied by focused on sociology recently to the forensic accounting field of the financial frauds. Also this technique introduced in this pager will be very useful to regulatory authorities or law enforcement agencies at the field inspection or investigation.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.24 no.6
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• pp.1243-1261
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• 2014

With the methods of electronic financial frauds becoming advanced, economic losses have greatly increased. The Electronic Financial Fraud Prevention Service(hereafter EFFPS) has taken effect to prevent electronic financial frauds, but economic losses still occurring. This paper aimed to suggest a direction for improvement of the EFFPS, through the analysis of electronic financial fraud cases. As a result of analysis on the fraud cases before and after implementation of the EFFPS, 'Fraud using Smartphone App' and 'Fraud using Calls and SMS' were increased after implementation of the EFFPS, and also the damage cost of 'Fraud using Smartphone App' had increased. Also we revealed some limitations of the EFFPS. For complementing this limitations, authors considered direction for improvement of the EFFPS focus on application of current services/systems related prevention of electronic financial fraud and considered the ways that are make connection with several measurements related prevention currently being discussed and implemented in perspective of defense in depth.

• East Asian Journal of Business Economics (EAJBE)
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• v.4 no.4
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• pp.8-20
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• 2016

Banks are the engines that drive the operations in financial sector, money markets and growth of economy. With growing banking industry in India, frauds in Banks are increasing and fraudsters are becoming more sophisticated and ingenious. Shockingly, banking industry in India dubs rising fraud as "an inevitable cost of doing business." As part of study, a questionnaire-based survey was conducted in 2012-13 among 345 Bank employees "to know their perception towards bank frauds and evaluate factors that influence the degree of their compliance level." The study reveals, "there are poor employment practices and lack of effective employee training; usually over-burdened staff, weak internal control systems, and low compliance levels on the part of Bank Managers, Offices and Clerks. Although banks cannot be 100% secure against unknown threats, a certain level of preparedness can go a long way in countering fraud risk. Internal audit professionals should play an integral role in organization's fraud-fighting efforts. Some other promising steps are: educate customers about fraud prevention, make application of laws more stringent, leverage the power of data analysis technologies, follow fraud mitigation best practices, and employ multipoint scrutiny.

• Journal of the Korea Convergence Society
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• v.6 no.1
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• pp.85-91
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• 2015

Recently government has distributed precautionary measure and response procedures for smishing(SMS phishing), pharming, phishing, memory hacking and intensified Electronic Financial Transaction Act because of the sharp increase of electronic bank frauds. However, the methods of electronic bank frauds also developed and changed accordingly so much it becomes hard to cope with them. In contrast to earlier voice phishing targeted randomizing object, these new methods find out the personal information of targets and analyze them in detail making a big data base. And they are progressed into new kind of electronic bank frauds using those analyzed informations for voice phishing. This study analyze the attack method of voice phishing blended with the Big Data of personal informations and suggests response procedures for electronic bank frauds increasingly developed. Using the method to save meaningless data in a memory, attackers cannot deduct accurate information and try voice phishing properly even though they obtain personal information based on the Big Data. This study analyze newly developed social technologic attacks and suggests response procedures for them.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.33 no.2
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• pp.353-362
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• 2023

Messenger phishing, communications frauds crime, exploits remote control of smartphones and non-face-to-face financial transactions, causing property damage due to money transfers, as well as account opening and loans in the name of victims. Such financial accidents may be careless of victims, but the current messenger phishing criminal method is intelligent and can be seen as digging into loopholes in the non-face-to-face user verification process. In this paper we analyze how messenger phishing uses loopholes in user identification procedures in non-face-to-face financial transactions. Through experiments, it is suggested to improve the non-face-to-face verification process for safer financial transactions.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.51-60
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• 2020

The paper examines the characteristics and causes of the expectation gap of audit and assurance services. The paper has conducted three surveys with three target groups. In the first survey, participants are auditors, users of audit reports are subject in the second survey and in the third survey, and students major in auditing are selected. The content of the survey aims to find out the differences in perception of the survey participants on two issues: (i) responsibilities of auditors for detection frauds, errors, protection of the enterprise's assets and financial scandals, and (ii) the role of audit and auditors in making investment decisions and investor's belief. The research carried out survey from March to September 2019 with 165 responds. The collected data was processed by statistical software SPSS, version 23, and Mann-Whitney U test was used to analyze the results of the audit expectation gap between the auditor group and the users of audit report group and between the student group and users of audit report group. The results showed that there exists an expectation gap in the responsibility of auditors for detection of all frauds, errors and protection enterprise's assets. Recommendations include strengthening audit standards, penalizing bad practices and ensuring auditor's independence.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.79-95
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• 2012

As credit loan products significantly increase in most financial institutions, the number of fraudulent transactions is also growing rapidly. Therefore, to manage the financial risks successfully, the financial institutions should reinforce the qualifications for a loan and augment the ability to detect a credit loan fraud proactively. In the process of building a classification model to detect credit loan frauds, utility from classification results (i.e., benefits from correct prediction and costs from incorrect prediction) is more important than the accuracy rate of classification. The objective of this paper is to propose a new approach to building a classification model for detecting credit loan fraud based on an individual-level utility. Experimental results show that the model comes up with higher utility than the fraud detection models which do not take into account the individual-level utility concept. Also, it is shown that the individual-level utility computed by the model is more accurate than the mean-level utility computed by other models, in both opportunity utility and cash flow perspectives. We provide diverse views on the experimental results from both perspectives.

• The Journal of Society for e-Business Studies
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• v.26 no.3
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• pp.21-32
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• 2021

Due to the recent development in electronic financial services, transactions of electronic prepayment are rapidly increasing. The increased transactions of electronic prepayment, however, also leads to the increased fraud attempts. It is mainly because electronic prepayment can easily be converted into cash. The objective of this paper is to develop a methodology that can effectively detect fraud transactions in electronic prepayment, by using sequential pattern mining techniques. To validate our approach, experiments on real transaction data were conducted and the applicability of the proposed method was demonstrated. As a result, the accuracy of the proposed method has been 95.6 percent, showing that the proposed method can effectively detect fraud transactions. The proposed method could be used to reduce the damage caused by the fraud attempts of electronic prepayment.