INFORMATION AND

COMMUNICATION
TECHNOLOGY
FRAUD
AIDIL HAQEM
SYUKRI
NG YU KAI

Meaning Of Fraud

Act or course of deception, an intentional concealment,

omission, or perversion of truth, to gain unlawful or unfair
advantage, induce another to part with some valuable item or
surrender a legal right, or inflict injury in some manner. Willful
fraud is a criminal offense which calls for severe penalties,
and its prosecution and punishment (like that of a murder) is
not bound by the statute of limitations. However
incompetence or negligence in managing a business or even
a reckless waste of firm's assets (by speculating on the stock
market, for example) does not normally constitute a fraud. In
such
cases,
the
aggrieved
party
(creditors
or
stockholders/shareholders) must prove that at some point
they were intentionally deceived on a material fact. See also
statute
of
frauds.

As A Civil Wrong

In common law jurisdictions, as a civil wrong, fraud is

referred to as a tort. While the precise definitions and
requirements of proof vary among jurisdictions, the
requisite elements of fraud as a tort generally are the
intentional misrepresentation or concealment of an
important fact upon which the victim is meant to rely,
and in fact does rely, to the harm of the victim . Proving
fraud in a court of law is often said to be difficult That
difficulty is found, for instance, in that each and every
one of the elements of fraud must be proven, that the
elements include proving the states of mind of the
perpetrator and the victim, and that some jurisdictions
require the victim to prove fraud with so-called clear and
convincing evidence.

Types Of Fraudlent Acts

Fraud can be committed through many media, including

mail, wire, phone, and the Internet (computer crime and
Internet fraud). International dimensions of the web and
ease with which users can hide their location, the
difficulty of checking identity and legitimacy online, and
the simplicity with which hackers can divert browsers to
dishonest sites and steal credit card details have all
contributed to the very rapid growth of Internet fraud. In
some countries, tax fraud is also prosecuted under false
billing or tax forgery . There have also been fraudulent
"discoveries", e.g., in science, to gain prestige rather
than immediate monetary gain

Anti Fraud Movements

Beyond laws that aim at prevention of fraud, there are

also governmental and non-governmental organizations
that aim to fight fraud. Between 1911 and 1933, 47
states adopted the so-called Blue Sky Laws status .
These laws were enacted and enforced at the state level
and regulated the offering and sale of securities to
protect the public from fraud. Though the specific
provisions of these laws varied among states, they all
required the registration of all securities offerings and
sales, as well as of every US stockbroker and brokerage

Detections

For detection of fraudulent activities on the large scale,

massive use of (online) data analysis is required, in
particular predictive analytics or forensic analytics.
Forensic analytics is the use of electronic data to
reconstruct or detect financial fraud. The steps in the
process are data collection, data preparation, data
analysis, and the preparation of a report and possibly a
presentation of the results. Using computer-based
analytic methods Nigrins wider goal is the detection of
fraud, errors, anomalies, inefficiencies, and biases
which refer to people gravitating to certain dollar
amounts to get past internal control thresholds