Due to the evolution of technology, internet speed, hands-on learning for hacking techniques, etc. has evolved the level of extreme monetary fraud done on the salaried individuals who get paid earnestly for the work they put in for their company or business. The term fraud is referred to as a form of monetary embezzlement or intentional deception that is designed so results in exploiting the individual both emotionally and financially. As fraudulent never jumps on any financial account which has a very minimum amount but to those who have a large amount. This is an unethical way of gaining money from an innocent individual who has the least knowledge about this phone phishing or acting as a representative of the bank by offering some insurance schemes for which you need to pay some amount to open it or claiming money for the bank account or insurance that is left idle, etc. where you have your savings or recurring bank accounts. Through this article, the readers and the viewers will learn about the different types of fraud commonly seen, for more information about finding ways to get protected regarding these scams it is better to type or click fraud protection in the search box on your favored internet browser.
Who detects fraud?
Any type of financial fraud can be determined by any literate individual as your bank account is connected to your mobile number and email accounts. So if there is any illegal transaction you will get informed then and then from your respective bank. If the bank finds out that there is some illegal transaction going on for the respective bank account they will automatically block your account. Some specialized tools for fraud detection and prevention must be used by different business-related companies to be aware of financial fraud.
How do the fraud detection and protection tools work?
- Data Analysis- Data matching process is done by collecting two sets of data through algorithms and programmed loops. This is used to remove duplicate records to provide market transactions.
- AI-based techniques- many fraud detection techniques use Artificial Intelligence those are here they use data mining systems to determine, differentiate, and classify data to signify patterns that are related to fraud, neural networks where they use classification, audits, forecasting, clustering, etc., especially for any financial documents. Machine learning form of fraud detection uses algorithms, and patterns to recognize them in future transactions.
Different types of fraud seen in the world-
- Financial statement fraud- manipulating the organization’s banking statements for various schemes or insurance policies of any fraud financial companies commonly stating by investing in this scheme your money will get doubled within years.
- Payroll fraud- manipulating the payroll system of a company. This is done by creating fake employees list and their salaries or manipulating the time sheets.
- Money laundering- this includes phone phishing, where they use the voice of someone near you to obtain money claiming they are in a serious problem for some medical condition or legal issue, hacker acts as bank representatives and claims that your account has frozen, and it needs to be reopened by investing some money for it.
- Cybercrime- this has evolved after the introduction of the internet, computers, and technology hackers enter your computer this happens mainly while your IP Address is visible where they use viruses or malware to steal sensitive information from your computer.
To conclude, the article defines the different types of fraud and how fraud prevention tools work.
