LITERATURE REVIEW

Variable 1: Financial Frauds: Data Mining based Detection

Author, Year Journal/Volume/Issue/Page/Title of the Research Objectives Variables Used Theoretical Framework Research Design/Method/Locus Findings
Article
Anuj Sharma and Prabin International Journal of Computer This paper presents a 1. Auditor’s knowledge about Data This paper has proposed an The process starts with feature This paper reviewed the literature
Kumar Panigrahi Applications (0975 – 8887) Volume 39– comprehensive review of the Mining. expanded generic data mining selection then proceeds with describing use of data mining
(2012) No.1 literature on the application of data 2. Auditor’s experience regarding framework. This framework representation, data collection and algorithms including statistical test,
mining techniques for the detection Financial Accounting Fraud. considers specific characteristics of management, pre-processing, data regression analysis, Neural
of financial accounting fraud and 3. Experience level of Auditors/ fraud detection techniques for mining, post-processing, and in the Network, decision tree, Bayesian
proposes a framework for data 4. Audit Firm Size financial accounting fraud. end performance evaluation. network etc for financial accounting
mining techniques based accounting fraud detection. Regression Analysis
fraud detection. is widely used for fraud detection
since it has great explanation ability.
This paper suggests that using only
financial statements data may not be
sufficient for detections of fraud.
The importance of data mining
techniques in the detection of
financial fraud has been recognized.
The future work may be proposing a
comprehensive classification
framework or a systematic review of
data mining application in financial
accounting fraud detection.

Aastha Bhardwaj and
Rajan Gupta, PhD (2016)
International Journal of Computer
Applications (0975 – 8887) Volume 156 –
No 10
This survey paper formalizes
different types of financial frauds,
summarizes the effective attributes
for detecting each type of fraud, and
presents the latest developments on
the use of data mining as a
detection tool for financial frauds.
 Types of Financial Fraud
 Latest Development
regarding Data Mining
Relevant data for detecting credit
card fraud:
1. Amount of transaction
2. Geolocation of real-time
transaction
3. Location from which
product is ordered
4. Category of the purchase
5. Seller or Vendor
6. Late night transaction
7. Overseas transaction
Jyotindra et al proposed transaction
risk generation model (TRSGM)
consists of five major components,
namely, DBSCAN algorithm,
Linear equation, Rules, Data
Warehouse and Bayes theorem.
Provide the different types of fraud
(Customer Fraud and Credit Card
Fraud) and present the latest
development on the use of data
mining as a detection tool for
financial frauds.
This paper analyzed each attribute
and prepared a list of effective
attributes for preparing more
effective fraud detection systems. It
will facilitate future research work by
providing handy details regarding
which attributes to be considered and
selecting a better and effective data
mining technique. It has the potential
to assist the investigators by giving
them a summary having accuracy of
different data mining techniques and
effectiveness of various variables to
be used for finding task relevant
data.