Prevention of Financial Frauds - Research Proposal Example

Various strategic practice models for financial fraud prevention have been proposed in the recent years and some of them are discussed in this proposal. 1. Introduction: Financial frauds are widely perceived to be various deliberately made criminal acts seriously violating the civil law while based on financial transactions and meant to attain myriad personal benefits. For the past many years, research reports have been illuminating that the need to combat financial frauds has become increasingly important and inevitable concerning its widespread proliferation and the immense threat it poses to the older citizens especially, though this criminal issue largely involves people of all ages as well.

From frauds planned on a large-scale and committed to weaken the roots of the national economy to small-scale financial frauds like fake lotteries and work at home plots, this criminal issue has largely succeeded in building many holes in the net of financial security which was once strong and meant to preserve the public protective. 2. Research review: A layered security approach and effective tools are required to handle this dramatic emergency of felonious financial frauds and by controlling who first receives sensitive documents like bank statements, small organizations can prevent financial fraud occurrence (CBIA News, 2007).

Expert policy-makers and researchers at (Research Centre on the Prevention of Financial Fraud, 2009) proposed a three-fold strategy to prevent the financial fraud proliferation around the globe. Consolidating information in an attempt to compile the fraud research for providing a disciplinary support to the policy-makers can help in preventing huge losses based on billions of dollars and occurring every year as a result of financial frauds. Secondly, effective anti-fraud messaging delivered via electronic medium can help in connecting research to policy.

Funding is also important to protect the fraud victims and finance research for financial fraud prevention. People in many cases remain unaware that they have become the victims of financial frauds because such frauds are often operated on the legal fringes by skillful scammers or business professionals (Button, Lewis, & Tapley, 2009). According to the research report published by (Bank Negara Malaysia, 2010), most of the financial frauds mimic legitimate courses so that the victims remain satisfied and do not think about pointing out at the fraudsters who are white-collar criminals.

“An unscrupulous investment broker may present clients with an opportunity to purchase shares in precious metal repositories, for example. His status as a professional investor gives him credibility.” (Bank Negara Malaysia, 2010). Tracking such quack business professionals who have a tendency to rob the innocent citizens by presenting fake investment opportunities to them with the help of ontology technology can also help in preventing and detecting financial frauds. “A fraud forensic ontology is being developed from laws, regulations, and cases about illegal solicitation of financial products on the web.

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