Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
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303 research outputs found
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Fraud Syndicates Within Digital Ecosystem: Graph Network and Transaction Analysis Approach
Full text linkThis paper aims to develop and test methods to detect organized crime, fraud syndicates, and Money Laundering schemes within an e-wallet ecosystem. Analytical An analyticalprocess framework combining Graph Analytics and Supervised Learning is developed and trained with sample spaces of fraud and non-fraud. The pipeline utilized Heterogeneous Graph Transformation (HGT), Graph Statistics (Centrality Measures and Community Detection), and a Gradient Boosting Model to produce models for the detection of fraud syndicate syndicatesand organized crime. Welch’s t-test is employed to infer variance differences between samples. Findings confirm the hypothesis that fraud networks are markedly different, exhibiting a more centralized and isolated network compared to the organic, interconnected behaviors of non-fraudulent users. Fraud networks are further characterized by multiple isolated clusters, indicating distinctive groups or behaviors. The proposed method can provide validated methods of fraud and money laundering detection, especially for financial decision-makers and policymakers, to enhance fraud detection systems by improving the protection, integrity, and security of customers and digital transactions
Cyber Security Awareness, Knowledge and Behavior of Digital Banking Users in Salatiga
Full text linkDigital banking has become one of the fastest-growing techno-logical advances in the banking sector. This study aims to analyze the relationship between cybersecurity awareness, knowledge, and behavior among digital banking users in Salatiga City. Using a quantitative approach, data were collected from 200 respondents and analyzed with SmartPLS 4. The results show that cybersecurity knowledge has a significant positive influence on both awareness and behavior. Awareness also directly affects behavior. However, awareness does not significantly mediate the relationship between knowledge and behavior. This implies that while awareness is important, knowledge plays a more dominant role in shaping users’ cybersecurity behavior. This study contributes to the banking industry by providing insights to enhance user cybersecurity through targeted education and awareness programs. Additionally, it enriches the academic literature on cybersecurity behavior in the context of digital banking users, particularly in developing regions. Future research is encouraged to explore other influencing factors such as motivation, perceived risk, or institutional support
Motivation, Prevention, and Detection of Asset Misappropriation Fraud: A Systematic Literature Review
No full textThe aim of this study is to synthesize and integrate fragmented knowledge regarding the Motivation, Prevention, and Detection of Asset Misappropriation Fraud to propose a consolidated conceptual framework. The study identifies eight motivations for asset misappropriation fraud (opportunity, rationalization, capability, ego, collusion, peer influence, and arrogance), ten preventive actions (internal control, religiosity, good corporate governance, integrity, ethics, risk management, technology, organizational culture, collaborative governance, and legal certainty), and four detection methods (data analytics, anonymous reporting channels, certain number patterns, and Certified Fraud Examiner). This study distinguishes itself from previous research by employing a systematic literature review method to ensure a structured, transparent, and comprehensive review through four key steps: design, conduct, analysis, and writing. This review offers practical insights by validating the Fraud Diamond framework and considering the need for increased reliance on Data Analytics for timely fraud detection, particularly in complex Asset Misappropriation scheme
The Failure of Internal Audit in Detecting Corporate Fraud Through Global Cases Study
No full textThis study investigates the reasons internal audit functions frequently fail to detect corporate fraud by examining fifteen global fraud cases through qualitative content analysis. It draws on a range of secondary materials, including academic literature, regulatory reports, investigative documents, and publications from the Association of Certified Fraud Examiners, to identify patterns that consistently emerge across cases. The results reveal enduring weaknesses such as limited independence, excessive reliance on management information, inadequate fraud risk assessment, insufficient professional skepticism, and the use of outdated audit techniques. These patterns are interpreted using the Fraud Triangle, Agency Theory, and the COSO Internal Control Framework to explain the systemic nature of internal audit failure. The findings suggest that internal audit ineffectiveness stems primarily from structural, cultural, and governance-related constraints rather than from procedural deficiencies alone. Overall, the study offers a cross-case synthesis that integrates multiple theoretical perspectives and provides practical insights for strengthening internal audit practices and enhancing fraud detection within corporate organization
Investigative Auditing and Fraud: A Systematic Literature Review through a Theoretical and Bibliometric Lens
Full text linkThis study aims to examine the role of investigative auditing in detecting and disclosing fraud by identifying red flags within the context of increasing public scrutiny and expectation gaps in audit functions. Employing a Systematic Literature Review (SLR) combined with bibliometric analysis, the research utilizes Scopus-indexed journal articles published between 2015 and 2025, with the support of the Watase Uake platform to ensure structured article selection and keyword visualization. The study is grounded in the Expectation Gap Theory and Fraud Diamond Theory to analyze both behavioral and systemic dimensions of fraud. The findings reveal that although red flags such as lifestyle indicators and behavioral anomalies are widely acknowledged in fraud detection, current literature tends to focus more on traditional audit procedures than on the specific functions of investigative audits. Bibliometric mapping also highlights a concentration of studies around general fraud detection, with fewer focusing on the practical applications of investigative auditing. This paper provides novel insights by integrating theoretical analysis with bibliometric evidence, offering a clearer understanding of research gaps and future directions in investigative audit studies. The study adds value by reinforcing the importance of strengthening investigative audit capabilities and aligning them more closely with stakeholder expectations and the evolving nature of fraud
Restorative Environmental Law Enforcement: Ensuring Environmental Restoration and Compliance Through Multiple Legal Instruments
No full textIndonesia faces massive pressure from environmental crimes. The environmental sector has fraud risk from money laundering and corruption. Traditional practices of law enforcement are not enough to create compliance. Innovative instruments are required; one of them is environmental restorative justice. The restorative justice approach in Indonesia has been formalized by several agencies since 2012, but there are no specific regulations on restorative justice in the environmental sector. This study intends to seek the conception of law enforcement built upon environmental restorative justice and how to implement environmental restorative justice in Indonesia. The study applies normative legal research methods by analyzing descriptively the legal instruments in Law Number 32 of 2009. The study shows that environmental law enforcement using environmental restorative justice is not a case termination, but rather a process of restoring the environment as the victim of environmental crime and broadening the liability of the main perpetrators. Restorative environmental justice in Indonesia can be implemented through the application of multiple legal instruments in the form of administrative sanctions, environmental dispute resolution, and criminal enforcement
SOAR Analysis for Audit Dilemmas in Non-Budgeted Cash Grants: A Case Study of East Tanjung Jabung Regency
No full textThis study explores the potential for fraud in transactions not directly tied to local government financial mechanisms, with a focus on the mechanism of granting in-kind donations from third parties to local governments. While these donations are formally given as goods, the process involves local governments managing third-party funds to procure the goods for donation. This research aims to address the auditors’ dilemma in rationalizing cash donation transactions handled outside the state financial system. This research adopts a qualitative methodology through a case study focused on Tanjung Jabung Timur Regency, drawing on data from the 2023 Audit Report of the Local Government Financial Statements. Using the SOAR framework for analysis, the study finds that cash grants managed outside the regional budget mechanism are still subject to state financial audits. This contributes to addressing the perception among local governments that such funds are excluded from state finances and provides a foundational step for developing audit procedures