Related papers: Double-Crossing Benford's Law
In the faceless world of the Internet,online fraud is one of the greatest reasons of loss for web merchants.Advanced solutions are needed to protect e businesses from the constant problems of fraud.Many popular fraud detection algorithms…
In this paper, we develop a framework of 'Benford models' for counter-intelligence investigations which analyze frequency data of a suspect's visits to physical locations, online websites, and communication channels. We accomplish this by…
Control systems are exposed to unintentional errors, deliberate intrusions, false data injection attacks, and various other disruptions. In this paper we propose, justify, and illustrate a rule of thumb for detecting, or confirming the…
Financial fraud is an issue with far reaching consequences in the finance industry, government, corporate sectors, and for ordinary consumers. Increasing dependence on new technologies such as cloud and mobile computing in recent years has…
The use of credit cards has become quite common these days as digital banking has become the norm. With this increase, fraud in credit cards also has a huge problem and loss to the banks and customers alike. Normal fraud detection systems,…
The following work is written in easy language for college level students. It shows how the first digit probabilities of a group of continuous real-valued functions can be calculated. Thus, examples explaining how the probabilities are…
We address a well-known problem in combinatorics involving the identification of counterfeit coins with a systematic approach. The methodology can be applied to cases where the total number of coins is exceedingly large such that brute…
Credit card plays a very important rule in today's economy. It becomes an unavoidable part of household, business and global activities. Although using credit cards provides enormous benefits when used carefully and responsibly,significant…
The renowned proverb, Numbers do not lie, underscores the reliability and insight that lie beneath numbers, a concept of undisputed importance, especially in economics and finance etc. Despite the prosperity of Benford's Law in the first…
The detection of frauds in credit card transactions is a major topic in financial research, of profound economic implications. While this has hitherto been tackled through data analysis techniques, the resemblances between this and other…
This paper studies how insurers can chose which claims to investigate for fraud. Given a prediction model, typically only claims with the highest predicted propability of being fraudulent are investigated. We argue that this can lead to…
Prime numbers seem to distribute among the natural numbers with no other law than that of chance, however its global distribution presents a quite remarkable smoothness. Such interplay between randomness and regularity has motivated sci-…
This paper has several major purposes. The central purpose is to describe the "Benford analysis" of a positive random variable and to summarize some results from investigations into base dependence of Benford random variables. The principal…
Fraudulent activities on digital banking services are becoming more intricate by the day, challenging existing defenses. While older rule driven methods struggle to keep pace, even precision focused algorithms fall short when new scams are…
Financial forensics has an important role in the field of finance to detect and investigate the occurrence of finance related crimes like money laundering. However, as with other forms of criminal activities, the forensics analysis of such…
Accounting fraud is a global concern representing a significant threat to the financial system stability due to the resulting diminishing of the market confidence and trust of regulatory authorities. Several tricks can be used to commit…
Money laundering (ML) is the behavior to conceal the source of money achieved by illegitimate activities, and always be a fast process involving frequent and chained transactions. How can we detect ML and fraudulent activity in large scale…
Money laundering is a major global problem, enabling criminal organisations to hide their ill-gotten gains and to finance further operations. Prevention of money laundering is seen as a high priority by many governments, however detection…
In applied probability, the normal approximation is often used for the distribution of data with assumed additive structure. This tradition is based on the central limit theorem for sums of (independent) random variables. However, it is…
Leaks from password datasets are a regular occurrence. An organization may defend a leak with reassurances that just a small subset of passwords were taken. In this paper we show that the leak of a relatively small number of text-based…