Fuzzy MADM Approach for Rating of Process-Based Fraud

Fuzzy MADM Approach for Rating of Process-Based Fraud

Blog Article

Process-Based Fraud (PBF) is fraud enabled by process deviations that occur in business processes.Several studies have proposed PBF detection methods; however, false decisions are still often made because of cases with low deviation.Low deviation is caused by ambiguity in determining fraud attribute values and low frequency of occurrence.

This paper proposes a method of detecting PBF with low deviation in order to correctly detect fraudulent Salad Bowl cases.Firstly, the fraudulence attributes are established, then a fuzzy approach is utilized to weigh the importance of the fraud attributes.Further, multi-attribute decision making (MADM) is employed to obtain a PBF rating according to attribute values and attribute importance weights.

Finally, a decision is made whether the deviation is fraudulent or not, based on the PBF rating.Experimental validation showed that the accuracy and false discovery rate of the O-ring method were 0.92 and 0.

33, respectively.