Intelligent Financial Fraud Detection Practices: An Investigation

Financial fraud is an issue with far reaching consequences in the finance industry, government, corporate sectors, and for ordinary consumers. Increasing dependence on new technologies such as cloud and mobile computing in recent years has compounded the problem. Traditional methods of detection involve extensive use of auditing, where a trained individual manually observes reports or transactions in an attempt to discover fraudulent behaviour. This method is not only time consuming, expensive and inaccurate, but in the age of big data it is also impractical. Not surprisingly, financial institutions have turned to automated processes using statistical and computational methods. This paper presents a comprehensive investigation on financial fraud detection practices using such data mining methods, with a particular focus on computational intelligence-based techniques. Classification of the practices based on key aspects such as detection algorithm used, fraud type investigated, and success rate have been covered. Issues and challenges associated with the current practices and potential future direction of research have also been identified.Comment: Proceedings of the 10th International Conference on Security and Privacy in Communication Networks (SecureComm 2014

Knowledge Discovery in the SCADA Databases Used for the Municipal Power Supply System

This scientific paper delves into the problems related to the develop-ment of intellectual data analysis system that could support decision making to manage municipal power supply services. The management problems of mu-nicipal power supply system have been specified taking into consideration modern tendencies shown by new technologies that allow for an increase in the energy efficiency. The analysis findings of the system problems related to the integrated computer-aided control of the power supply for the city have been given. The consideration was given to the hierarchy-level management decom-position model. The objective task targeted at an increase in the energy effi-ciency to minimize expenditures and energy losses during the generation and transportation of energy carriers to the Consumer, the optimization of power consumption at the prescribed level of the reliability of pipelines and networks and the satisfaction of Consumers has been defined. To optimize the support of the decision making a new approach to the monitoring of engineering systems and technological processes related to the energy consumption and transporta-tion using the technologies of geospatial analysis and Knowledge Discovery in databases (KDD) has been proposed. The data acquisition for analytical prob-lems is realized in the wireless heterogeneous medium, which includes soft-touch VPN segments of ZigBee technology realizing the 6LoWPAN standard over the IEEE 802.15.4 standard and also the segments of the networks of cellu-lar communications. JBoss Application Server is used as a server-based plat-form for the operation of the tools used for the retrieval of data collected from sensor nodes, PLC and energy consumption record devices. The KDD tools are developed using Java Enterprise Edition platform and Spring and ORM Hiber-nate technologies

Fuzzy Logic and Intelligent Agents: Towards the Next Step of Capital Budgeting Decision Support

The economic life of large investments is long and thus necessitates constant dynamic managerial actions. To be able to act in an optimal way in the dynamic management of large investments managers need the support of advanced analytical tools. They need to have constant access to information about the real time situation of the investment, as well as, access to up-to-date information about changes in the business environment. What is more challenging, they need to integrate qualitative information into quantitative analysis process, and to integrate foresight information into the capital budgeting process. In this paper we will look at how emerging soft computing technologies, specifically fuzzy logic and intelligent agents, will help to provide a better support in such a context and then to frame a support system that will make an integrated application of the aforementioned technologies. We will first develop a holistic framework for an agent-facilitated capital budgeting system using a fuzzy real option approach. We will then discuss how intelligent agents can be applied to collect decision information, both qualitative and quantitative, and to facilitate the integration of foresight information into capital budgeting process. Integration of qualitative information into quantitative analysis process will be discussed. Methods for integrating qualitative and quantitative information into fuzzy numbers, as well as, methods for using the fuzzy numbers in capital budgeting will be presented. A specification of how the agents can be constructed is elaborated.Intelligent Agents, Fuzzy Sets, Capital Budgeting, Real Options, DSS

An agent-based fuzzy cognitive map approach to the strategic marketing planning for industrial firms

This is the post-print version of the final paper published in Industrial Marketing Management. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2013 Elsevier B.V.Industrial marketing planning is a typical example of an unstructured decision making problem due to the large number of variables to consider and the uncertainty imposed on those variables. Although abundant studies identified barriers and facilitators of effective industrial marketing planning in practice, the literature still lacks practical tools and methods that marketing managers can use for the task. This paper applies fuzzy cognitive maps (FCM) to industrial marketing planning. In particular, agent based inference method is proposed to overcome dynamic relationships, time lags, and reusability issues of FCM evaluation. MACOM simulator also is developed to help marketing managers conduct what-if scenarios to see the impacts of possible changes on the variables defined in an FCM that represents industrial marketing planning problem. The simulator is applied to an industrial marketing planning problem for a global software service company in South Korea. This study has practical implication as it supports marketing managers for industrial marketing planning that has large number of variables and their cause–effect relationships. It also contributes to FCM theory by providing an agent based method for the inference of FCM. Finally, MACOM also provides academics in the industrial marketing management discipline with a tool for developing and pre-verifying a conceptual model based on qualitative knowledge of marketing practitioners.Ministry of Education, Science and Technology (Korea

Intelligent approaches to performance support

Electronic performance support systems provide an important method of meeting on‐demand educational and training requirements. They also provide efficient and effective ways of enabling the knowledge and expertise within an organization to be shared. This paper discusses the design of a distributed electronic performance support system and the ways in which ‘intelligent agents’ based on expert systems and neural networks can be used to locate and share distributed expertise. A case study illustrating our approach to the implementation and use of intelligent agents is presented