• 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.

• Journal of the Korea Society of Computer and Information
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• v.24 no.1
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• pp.207-215
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• 2019

The insurance system is indispensable to our society. However in recent years, there have been a lot of insurance fraud crimes, such as the abuse of these valuable insurance system and the cheating the insurance proceeds. These insurance frauds make the insurance companies harder to manage, and as a result, the insurance premiums have risen, which has caused a lot of damaging good policyholders. However, the damage caused by insurance fraud has been continuously increasing due to the punishment of cotton stick. Therefore, after the long discussion, the 'The Act for Prevention of Insurance Fraud', which is a special law recently has been enacted. However, within two years of the enactment of this law, which was enacted after much anticipation and long waiting, there is already debate about its effectiveness. The reason for this is that even though the law was enacted and enforced, insurance fraud continues to increase and even punishment for these crimes is not strengthened, and now it is time to look for specific problems and resolutions for these crimes see. So in this paper the author dealt with the problems of the law, first, related regulation of insurance payment, second, right to terminate insurance contract and return of insurance proceeds, third, regulation on notification of investigations, fourth, regulations on the adequacy of hospitalization. Of course, since this law has just been enacted, there are many other problems besides these problems, but I tried to present a fresh resolution based on the problems that have been mainly discussed since the legislative period.

• The Journal of Industrial Distribution & Business
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• v.13 no.1
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• pp.1-9
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• 2022

Purpose: This study aims to find empirical evidence and clarity on the phenomenon of the direct and indirect effect of perceived behavioral control on fraud prevention through whistleblowing intention. This study also aims to understand the influence of organizational ethical culture moderating between whistleblowing intention and fraud prevention. Research design, data, methodology: The samples of this research are 236 respondents consisting of the Head of the Finance Subdivision and Head of the Reporting Planning Subdivision and the finance staff who were determined using the purposive sampling method. The data obtained were analyzed using the Structural Equation Modeling technique. Results: The study results show that perceived behavioral control positively and significantly affects whistleblowing intention. In addition, perceived behavioral control does not affect fraud prevention mediated by whistleblowing intention. Furthermore, organizational ethical culture moderates whistleblowing intention and has a positive and significant effect on fraud prevention. Conclusions: This study concludes that the phenomenon of scandal that often occurs on a television is not a habit that must be followed. It requires an active role from the community as a form of concern for whistleblowing. Futher researchers can add other construct variables, such as good corporate governance to assess the performance improvement of the organizational layers, both internally and externally

• Journal of Information Technology Services
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• v.6 no.2
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• pp.1-18
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• 2007

Many researches have been done in insurance fraud as the amount and frequency of insurance fraud have been increasing continuously. In particular, the development of insurance fraud detection system using large database management techniques including data mining or link analysis based on visual method have been the main research topic in insurance fraud. However, this kinds of detection system were very ineffective to find unintentional insurance fraud happened by accident even though it was so good to find intentional and organized crime insurance fraud. Therefore, this research suggests insurance fraud as an ethical decision making and applies TPB(Theory of Planned Behavior) for the finding of reasons and prevention strategies of unintentional insurance fraud happened by accident. The results of research show that TPB is very appropriate model to explain the behavior of insurance fraud and that insurance agents force to do insurance fraud as affecting perceived behavior control. Therefore, education and pubic relations for insurance fraud are very effective for preventing insurance fraud and developing insurance service industry.

• Journal of Korea Trade
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• v.24 no.7
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• pp.73-92
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• 2020

Purpose - The letter of credit has been playing a major role to diminish overall risks which exist among concerned parties even though there are differences such as language, culture, law, and distance. This paper reviews essence of the letter of credit and its transaction principles, as well as overall practical questions based on the L/C transaction principle. It also investigates the risk of fraud occurrences in L/C transactions and the importance of fraud prevention and preventive measures in international L/C transactions, including the Fraud Rule, which is a major topic to consider in business transactions. Design/methodology - It is considered that an importing country's concerned parties and an exporting country's concerned parties face different situations. This study employs the existing framework to identify liability, responsibility, and obligation for all concerned parties across countries. Using a quite direct measurement of principles in the letter of credit, such as principle of independence, principle of abstraction, and principle of strictness and coincidence, we studied these differences. Findings - Our main findings can be summarized as follow. The paper enhances the efficiency of the L/C payment method to provide fraud generated from L/C transactions, presentation of a theoretical framework about fraud and fraud prevention, which international trading companies should acknowledge in a material way based on fraud risk resulting from taking advantage of L/C transaction principles. Originality/value - Existing studies focus on fraud accidents in L/C transactions by taking bad advantage of the characteristics of the letter of credit without suggesting risks of fraud. This paper attempts to evaluate and provide preventive measures as a solution for fraud and risky international business in a letter of credit transaction. This area of trade studies is underexplored, both empirically and theoretically, although the issue has long been important to Korean and world community foreign trade.

• International Journal of Computer Science & Network Security
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• v.24 no.9
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• pp.169-185
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• 2024

Due to levitate and rapid growth of E-Commerce, most of the organizations are moving towards cashless transaction Unfortunately, the cashless transactions are not only used by legitimate users but also it is used by illegitimate users and which results in trouncing of billions of dollars each year worldwide. Fraud prevention and Fraud Detection are two methods used by the financial institutions to protect against these frauds. Fraud prevention systems (FPSs) are not sufficient enough to provide fully security to the E-Commerce systems. However, with the combined effect of Fraud Detection Systems (FDS) and FPS might protect the frauds. However, there still exist so many issues and challenges that degrade the performances of FDSs, such as overlapping of data, noisy data, misclassification of data, etc. This paper presents a comprehensive survey on financial fraud detection system using such data mining techniques. Over seventy research papers have been reviewed, mainly within the period 2002-2015, were analyzed in this study. The data mining approaches employed in this research includes Neural Network, Logistic Regression, Bayesian Belief Network, Support Vector Machine (SVM), Self Organizing Map(SOM), K-Nearest Neighbor(K-NN), Random Forest and Genetic Algorithm. The algorithms that have achieved high success rate in detecting credit card fraud are Logistic Regression (99.2%), SVM (99.6%) and Random Forests (99.6%). But, the most suitable approach is SOM because it has achieved perfect accuracy of 100%. But the algorithms implemented for financial statement fraud have shown a large difference in accuracy from CDA at 71.4% to a probabilistic neural network with 98.1%. In this paper, we have identified the research gap and specified the performance achieved by different algorithms based on parameters like, accuracy, sensitivity and specificity. Some of the key issues and challenges associated with the FDS have also been identified.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.27 no.1
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• pp.115-128
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• 2017

The methods of electronic financial fraud continue to evolve. Various research and countermeasures have been proposed to counter this problem, but it is difficult to eradicate it. The purpose of this study is to analyze the risk of electronic financial fraud through MS Threat Risk Modeling and to propose the countermeasures against the electronic financial fraud. As a result of the analysis, it is confirmed that despite the difference of authentication methods, there is a high risk of pharming, and it is difficult to prevent attack by using only additional authentication means, device security or user authentication based security system. Therefore, this study suggests the introduction of preventive measures such as readjustment of transaction limit by security means, account authentication, and additional physical security measures. It also suggests the establishment and implementation of a comprehensive electronic financial fraud prevention policy through linkage of electronic fraud prevention system and improvement of public relations and user awareness.

• The Journal of Society for e-Business Studies
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• v.20 no.2
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• pp.141-153
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• 2015

In recent days, internet appears to be a daily necessity, which leads to the increase of internet fraud. This study particularly focuses upon C2C internet fraud, while other researches on internet fraud seldom touch such a topic. The aim of this study is to grasp the stark reality of the soaring C2C online fraud, to categorize the type of the frauds, to identify the root causes of the fraud, and to suggest security measures to prevent the C2C online fraud.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.25 no.1
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• pp.173-179
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• 2015

Financial fraud such as phishing have passed several years from the occurrence, in spite of the widely known through the media, regardless of the social status or age, financial fraud has occurred on an ongoing basis, the damage is not reduced. The fraud account, the person who made the account, the user is different, it is possible to avoid tracking financial channel, and is used as a receiving means for fraud money of various crimes. Efforts of financial institutions and financial supervisory institutions, it has been promoted by preparing various measures for the eradication of fraud account so far been used as a means of financial crime, the proliferation of financial fraud, opening and distribution of fraud account is a receiving means for fraud money are also increasing continuously, it is necessary to take countermeasures. In spite of the continuous crackdown of financial institutions and financial supervisory institutions, it is causing serious damage to society, analyzes the current situation of fraud account, to present an effective and aggressive countermeasure of financial institutions in this paper.

• Journal of Digital Convergence
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• v.16 no.7
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• pp.9-17
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• 2018

Recently, much attention in electronic financial fraud has been dramatically increased. In particular, the electronic financial fraud has been transforming to social engineering. Despite the growing interest in electronic financial fraud, few guidelines exist how to effectively avoid the serious damage from electronic financial fraud. Moreover, it is rarely investigated cases of victims from financial fraud. Therefore, the purpose of this study is to investigate why financial fraud crime victims occurs. To enhance mundane realism, we conducted Focus Group Interview(FGI) with actual victims from financial fraud crime. Drawing analysis of FGI with actual victims, we found that there are certain damage patterns. Further, we found that the reason why financial fraud crime victims occurs is optimistic biases of humans rooted in behavioral economics. Therefore, this study provides the valuable guidelines and directions to prevent electronic financial fraud based on risk and crisis management perspective. Ultimately, this study is able to help the establishment and implementation of a comprehensive electronic financial fraud prevention policy.