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The article presents a speech by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, delivered at the Securities Enforcement Forum in Washington, D.C. on October 25, 2023. Topics discussed include the mission of SEC to combat and investigate securities fraud or misrepresentation, compliance and responsibility to the law, and enforcement program of SEC with themes of economic realities, accountability, high-impact cases, fairness in process, and positions of trust in the markets.

The article features businessmen Naftali Harris and Maxwell Blumenfeld and their fraud detection company SentiLink. Also cited are how the company helped detect and prevent fraudulent online loans by swindler Hasan Hakim Brown of Florida in 2018, and how the business partners discovered how synthetic fraud works that led to the creation of SentiLink.

The proliferation of technology throughout modern business has created novel opportunities for financial statement fraud. But technology tools can also be leveraged to help detect and prevent fraud. Contemporary artificial intelligence (Al) approaches have the potential to be more efficient and accurate in detecting fraud, especially novel frauds. But although Al models can analyze volumes of data too vast for humans to handle, they still rely upon human intuition, experience, and analysis to train them and look out for bias and error. Successful implementation requires careful planning, investment, and expertise., The digitalization of the global economy has created unprecedented opportunities for various kinds of frauds, some of which may involve, or create a corollary need for, financial statement deceptions. The [...]

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Byline: Kevin White Two food businesses have been defrauded of thousands of pounds by fraudulent buyers claiming to supply French supermarkets. London-based artisan cheese retailer Neal's Yard last weekend revealed [...]

SOPHISTICATED SCAM The complexity of the operation made it difficult to detect the fraud until it was too late - Neal's Yard [...]

TLDR: Treasury Dept used AI to recover $1 billion in check fraud in FY 2024 Total fraud prevention/recovery reached $4 billion, up 6x from previous year Machine learning AI analyzes [...]

Byline: Ranganathan V The previous two parts on this topic covered a few of the noted audit failures within India and elsewhere. (Read: Audit May Be Easier To Replace than [...]

Byline: Ranganathan V Accounting firms coming under the hammer of the regulators and being fined bigger and bigger sums for failing to do their principal duty of reporting to the [...]

Key Highlights: * 35 banks in the country have launched an anti-fraud campaign. * The new system is based on best practices in fraud prevention. * Implemented by Ministry of [...]

Byline: Moneylife Digital Team In a shocking revelation that has sent ripples through India's financial sector, the Securities and Exchange Board of India (SEBI) has uncovered a calculated and extensive [...]

Almost overnight, it seems artificial intelligence is revolutionizing industries worldwide, and its impact on automotive is no exception. With the help of AI, automotive finance and lease businesses are already [...]

Byline: Moneylife Digital Team Market regulator Securities and Exchange Board of India (SEBI) has directed stock brokers to comply with several obligations and mechanisms, such as systems for surveillance of [...]

Byline: Moneylife Digital Team The financial intelligence unit-India (FIU-IND) has slapped a penalty of over Rs1.66 crore on Axis Bank for 'failing' to detect a fraud account in the name [...]

Byline: Anadi Tewari (Bar The Allahabad High Court last week came down heavily on the Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO) and the Uttar Pradesh's Economic Offences Wing [...]

Byline: Anadi Tewari The Court said that the entire investigation in the case against Shine City Infra Projects Private Limited has been carried out by the investigating agencies in the [...]

In 2023, Taiwan faced over 30,000 fraud cases with $1.6 million in losses, while the Chinese government set a record with $88.78 billion in fraud. Fujitsu collaborated with Taipei-based Fujian [...]

Byline: Moneylife Digital Team The Bombay High Court (HC) recently granted bail on health grounds to Ramesh Bawa, former managing director and chief executive officer (MD&CEO) of IL&FS Financial Services [...]

authID announced that National Notarial Centralized Verification System, NNCVS, will deploy authID's biometric identity life-cycle platform to provide real-time identity assurance to the company's innovative online technology platform for commissioned [...]

Byline: Moneylife Digital Team The Bombay High Court has granted bail to Hari Sankaran, former vice chairman and managing director (MD) of Infrastructure Leasing and Financial Services (IL&FS), almost five [...]

Byline: Adina Genn An $8.6 million settlement has been reached in an investigation into charges of financial fraud and abuse at a nursing home, the New York Attorney General's Office [...]

the CalCPA Committee on Taxation recently met with the IRS to hear from the Criminal Investigations Division, Large Business & International Division, Office of Chief Counsel and Communications and Stakeholder [...]

Copyright of brand eins is the property of brand eins Medien AG and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

NICE Actimize, a NICE business has reported that PAN Finance, a source of global financial intelligence, has presented it with the organization's 'Most Innovative Fraud Detection Technology/EMEA 2023' award for [...]

Sinopac Holdings signed a cooperation memorandum with the Criminal Investigation Bureau to enhance cybersecurity capabilities and collaborate in fraud prevention. Sinopac Bank, a subsidiary of Sinopac Holdings, has previously collaborated [...]

Byline: GN Bureau 2.45 lakhs SIM cards and 42,000 IMEIs have been blocked by government Since its inception, Citizen Financial Cyber Fraud Reporting and Management System has witnessed more than [...]

Privacy has raised considerable concerns recently, especially with the advent of information explosion and numerous data mining techniques to explore the information inside large volumes of data. These data are often collected and stored across different institutions (banks, hospitals, etc.), or termed cross-silo. In this context, cross-silo federated learning has become prominent to tackle the privacy issues, where only model updates will be transmitted from institutions to servers without revealing institutions' private information. In this paper, we propose a cross-silo federated XGBoost approach to solve the federated anomaly detection problem, which aims to identify abnormalities from extremely unbalanced datasets (e.g., credit card fraud detection) and can be considered a special classification problem. We design two privacy-preserving mechanisms that are tailored to the federated XGBoost: anonymity based data aggregation and local differential privacy. In the anonymity based data aggregation scenario, we cluster data into different groups and using a cluster-level data feature to train the model. In the local differential privacy scenario, we design a federated XGBoost framework by incorporate differential privacy in parameter transmission. Our experimental results over two datasets show the effectiveness of our proposed schemes compared with existing methods. [ABSTRACT FROM AUTHOR]

Artificial intelligence is playing an important part of the insurance claims function with its ability to automate workflows, uncover fraud, and manage risks to prioritize and allocate resources, Dan Thompson, [...]

October 31 -- The Enforcement Directorate (ED) detained two promoters of a Chandigarh-based pharma company and co-founders of Ashoka University, along with a chartered accountant in a money-laundering investigation related [...]

The Revolving Door Project, a Prospect partner, scrutinizes the executive branch and presidential power. Follow them at (https://therevolvingdoorproject.org/) therevolvingdoorproject.org. Last week, New York Attorney General Letitia James announced a lawsuit [...]

September 26 -- The Enforcement Directorate has arrested PR Arivandakshan, a CPM Municipal Councillor from Kerala's Wadakkanchery, in connection with the Karuvannur co-operative bank fraud case, officials said Tuesday. The [...]

Nearly 20,000 fraud cases have occurred in Taiwan as of the end of May this year, compared with 2021. Fraud cases have increased by 21% compared with the same period [...]

September 15 -- Alleged hawala transactions worth Rs 11.80 crore were reportedly unearthed after a raid was conducted by the police in connection with a online gaming fraud probe. The [...]

Mercy Hospital is a public hospital that receives tax assistance from the local community. The hospital's mission is to treat all residents of the county regardless of their ability to [...]

Because my Facebook and Amazonaccounts used the same email and password combinations, Ihave now updated both accounts with different long andunique passwords. They also suggestchanging the password for all accounts using the same emailand password combination and generating unique passwordsfor every account. PERSONAL SECURITY FOR SENIORS The nightmare began on Sunday, February 5, when I received a textalert on my cell phone notifying me that my Amazon account hadbeen accessed by an unknown person. [Extracted from the article]

• Selection of explanations with our approach is 4× faster than the baselines. • The runtime for graph similarity scoring improves by up to four orders of magnitude. • Our approach accumulates up to 26× higher utility of explanations. • Evaluations include 3 datasets, 5 synthetic models, 9 baselines, and 4 metrics. • Our optimisations are robust to different input rates and concept drifts. Fraud detection is one of the most important tasks in Web platforms such as e-commerce, social media, network security, and financial systems. To prevent fraudulent actions from misleading customers or causing significant losses for businesses, various fraud detection methods have been proposed in recent years. However, research on fraud definitions, characteristics, and behaviours has been limited to which users, items, and transactions are considered fraudulent rather than why these entities have been classified as such. This inhibits effective validation of the detected frauds as well as countermeasure design. In this paper, we argue that explanations for discovered frauds may be provided in terms of prior identified frauds. A large variety of comparable frauds would assist investigators to generalise, allowing them to grasp the characteristics that are significant for fraud detection. Feature-annotated graphs are frequently used to detect the type of fraud in which fraudsters commonly interact with a large number of benign users to conceal themselves. Given a fraud subgraph, we propose a query-by-example approach for indexing and extracting the k most similar and diverse fraud subgraphs from prior frauds. To achieve an efficient and adaptive realisation of the approach in a streaming setting, we present a novel graph representation learning technique and discuss the implementation considerations. Comparing our study against baseline techniques revealed that our approach outperforms them in delivering meaningful explanations for various fraud camouflage behaviours. [ABSTRACT FROM AUTHOR]

Recently GNN-based graph machine learning methods have been widely used in fraud detection. Prior works have revealed the problems of camouflaged fraudsters on graphs, which dilute the suspicion of aggregated features of fraudsters. The fraudsters' camouflage lies in two main aspects: 1) fraudsters adjust their attributes to camouflage original hand-craft features against detection. 2) fraudsters connect to benign entities, making the labels of their contexts inconsistent. However, previous neighbor sampling methods based on similarity measures are inadequate in calculating neighbor similarity, resulting in a loss of GNN-based detector performance. In this paper, we enhance the node similarity measure-based neighbor sampling method and the multi-relational aggregator. First, we use supervised contrastive learning to aggregate discriminative node embeddings. After that, the consistent neighbors are sampled according to the contrastive embedding similarity as well as the node feature similarity. Finally, we improve the multi-relational aggregator via contrastive embeddings. Experiments on two real-world datasets demonstrate that our model CACO-GNN achieves the highest scores in F1-macro, AUC, and Recall, with an 18.5% improvement in F1-macro performance, enabling more effective detection of camouflaged fraudsters. [ABSTRACT FROM AUTHOR]

Georgia's Prosecution Service is investigating fraud allegations in the parliamentary elections and plans to question President Salome Zourabichvili about her claims of election rigging. Tens of thousands protested in Tbilisi over the election, with the ruling Georgian Dream party winning 54% of the vote. The opposition parties, backed by Zourabichvili, have threatened not to take up their mandates due to alleged rigging. International observers expressed concerns about the election, citing divisive campaign rhetoric and reports of intimidation, coercion, and pressure on voters. [Extracted from the article]

Georgia's Prosecution Service is investigating fraud allegations in the parliamentary elections and plans to question President Salome Zourabichvili about her claims of election rigging. Tens of thousands protested in Tbilisi over the election, which the ruling Georgian Dream party won with 54% of the vote. The opposition parties, supported by Zourabichvili, have threatened not to take up their mandates due to alleged rigging. International observers expressed concerns about the election, citing divisive campaign rhetoric and reports of intimidation, coercion, and pressure on voters. [Extracted from the article]

The Serious Fraud Investigation Office (SFIO) has recorded the statement of Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan, in connection with a case involving alleged illegal financial transactions in her IT firm Exalogic. The controversy arose after a media report claimed that Veena's firm had received Rs 1.72 crore from mining company CMRL, in which the state-owned Kerala State Industrial Development Corporation (KSIDC) has a stake. Veena clarified that the payments were for software services provided by her company to CMRL. The SFIO investigation has sparked a political controversy in Kerala, with the opposition accusing the Chief Minister and his family of corruption. The SFIO is expected to submit its charge sheet in November. [Extracted from the article]

Three market making firms, ZM Quant, CLS Global, and MyTrade, have been charged with market manipulation and fraud in a sting operation conducted by federal prosecutors. The scheme involved wash trades, where accounts are used to create the false impression of volume. The investigation began with a tip from the US Securities and Exchange Commission about a crypto company called Saitama, which led to the discovery of the fake crypto firm, NexFundAI. The operation resulted in the seizure of over $25 million in cryptocurrency and the deactivation of multiple trading bots. [Extracted from the article]

Payments software giant Stripe has announced partnerships with chipmaker Nvidia, soda and snack company Pepsi, and payment platform company FreedomPay. Nvidia's customers will soon be able to prepay for the company's cloud services using Stripe's payment software. Stripe has been using Nvidia's artificial intelligence programs for the past eight years to improve fraud detection. The company has also announced partnerships with Amazon, AMC Networks, Rivian, and Cloudflare, although details about these partnerships are limited. Stripe plans to continue improving its fraud detection service with the help of Nvidia's AI software. [Extracted from the article]

The article present an interview with Chloé Goldstein, directrice marketing & business development Hello bank!. Topics discussed include how Hello bank! uses artificial intelligence (AI) to enhance customer service and operational efficiency; the automation of customer request handling through semantic analysis; AI's role in fraud detection and security; and the use of AI to streamline account opening and loan processes, reducing response times.

Going digital means sharper performance measures and cost-effective fraud detection. A version of this article first appeared in the July BAI Executive Report: Modernizing payment methods. Find more insight within the issue on topics including consumer payment preferences, FedNow and RTP, check fraud and more. It's clear that many financial institutions have enthusiastically jumped on the digital transformation train, as have businesses. These [ABSTRACT FROM AUTHOR]

Joseph Rallo, the CEO of EF Hutton, is currently under investigation for federal securities and wire fraud. EF Hutton has also filed a lawsuit against Rallo, accusing him of stealing millions by falsifying his expense reports. The firm alleges that Rallo used company funds for personal expenses such as private jet travel, Knicks playoff tickets, and hangover treatments. EF Hutton is seeking damages and a declaration that Rallo was properly terminated as CEO. Rallo's lawyer has refused to meet with the law firm conducting EF Hutton's internal probe. [Extracted from the article]

Vietnamese real estate tycoon Truong My Lan is facing a second trial on fraud charges, highlighting the government's commitment to cracking down on corruption. Lan, along with 33 co-defendants, is accused of fraudulent appropriation of property, money laundering, and illegal currency transport across borders. This trial is expected to last until October 19. Lan was previously sentenced to death for embezzling over $12 billion from Saigon Commercial Bank. The government's anti-corruption campaign has impacted Vietnam's real estate sector, causing delays and liquidity problems. Lan is currently appealing the death sentence and could face decades in prison if unsuccessful. [Extracted from the article]