University of Agriculture Faisalabad
for MS degree in computer science)
Fraud in E-Commerce Applications by using e SCARF as
of the student : Hafiza Aqsa Mubarak
Registration No :
The SCARF is
installing review programming modules inside a host application framework to
give consistent observing. The zone of electronic extortion was focused as it
is one of the significant dangers for organizations participating in the
quickly developing routine with regards to online business today. Hypothetical
review uncovered that in logical writing, monetary proportions are investigated
and watched that budgetary articulations which are most delicate in connection
with the themes of administrators chiefs to submit frauds. In the wake of
disappointment of different organizations and association, there is a desperate
need to counteract and identify cheats in money related explanations.
Misrepresentation recognition is happened just if avoidance. The capacity to
relieve this hazard is significant to organizations and inspectors, and
constant affirmation frameworks, which may give confirmation benefits
continuously, offer such a capacity. A theoretical model was developed to
create a summed up outline of the misrepresentation evaluating condition, and
the articles and powers affecting the procedure. The advancement of eSCARF is archived and gives
knowledge into the design of a persistent confirmation framework. The
utilization of framework which can fabricate client profiles and after that
utilization this information to extricate examples of misrepresentation, will
be better ready to adjust as example of assault definitely develop. Pragmatic
use of the advancements and discovery calculations, will enable organizations
to recognize and comprehend examples of deceitful conduct, and after that make
successful move to battle these frequencies.
University of Agriculture Faisalabad
for MS degree in computer science)
Title: Detect Fraud in E-Commerce Applications by
using e SCARF as
Date of Admission : September, 2016
Date of Initiation (research) : After approval
Probable Duration (research) : Four months
a) Name of the Student : Hafiza Aqsa
b) Registration No. : 2016-ag-1934
i) Miss Wajeeha Azmat : (Supervisor)
ii) Sir Akmal Rehan : (Member)
iii) Dr. Zafar Iqbal : (Member)
development of electronic business (‘internet business’) on the planet has been
impressive in the course of recent years, with conjectures proposing that this
unstable pattern will proceed. The introduction of the dot coms who have
benefited from the points of interest web based business gives, for example,
bring down obstructions to showcase passage, and additionally the broad
reconciliation of online business frameworks into officeholder associations is
demonstration of this. This development has emerged as the advantages of online
business have been acknowledged by organizations and purchasers alike. In the
‘computerized economy’, web based business has encouraged effective data trade,
empowered cost decreases, gave new income openings and expanded process
efficiencies. Clients additionally receive these rewards through the gathering
of better client benefit and the more noteworthy accommodation of paperless
online exchanges. Web based business is perpetually getting to be interwoven
with how associations work together and are worked (Mackevicius et al., 2013).
Be that as it
may, this tight mix with internet business has expanded the presentation of
organizations to a more extensive scope of dangers. For example, security,
protection and unwavering quality concerns. Real security worries,
specifically, are expansive obstructions keeping a more fast take-up and
development of online business. Dealing with these dangers is the fate of grand
significance to organizations sharing in any online business operation – both
in shielding organization web based business income streams from
security-related disasters, for example, extortion, burglary and frameworks
disappointment, and in guaranteeing reluctant clients of the wellbeing of
taking part in internet business(Ravisankar et
One of the
main security dangers is extortion. In any exchange, members need to guarantee
appropriate receipt of installment in return for products or administrations.
Disappointment by one gathering to get what they expect may show the event of
extortion. As an outcome of the coming of internet business, new strategies for
completing monetary exchanges imply that new techniques by which extortion is
executed additionally emerge, (for example, shill offering in online sales).
The nearness of extortion, or even its danger is an obstacle to organizations
and clients alike, who may Currently, a variety of tools using a myriad of
approaches to detect fraud do exist, but their use is limited, fragmented and
their effectiveness is untested. The fraud detection solutions that do exist
for businesses engaging in e-commerce tend to be proprietary in nature and how
they work resort to more traditional means of performing transactions is unpublicized
(Kuktaite et al., 2012).
electronic environment therefore has need for effective controls, built around
a generalised, tested framework,that will mitigate the risk of fraud that
e-commerce poses. Obviously organizations remain to profit by the capacity to
decrease extortion, yet the improvement of these controls is likewise essential
for examiners. A basic obligation of reviewers is to plan and lead reviews for
anomalies actuated by extortion, other illicit acts and mistakes, that effect
upon the money related reports of an element. In this manner, nabling better
identification of misrepresentation would encourage an examiner’s activity.
Extortion avoidance is troublesome in
the faceless universe of the Internet, and any measure intended to react to it
should have the capacity to do as such in a convenient way (Wuerges et al., 2010).
affirmation (CICA) offers a convenient strategy for confirmation where, by
checking exchanges (streams of data, particularly installment and request
subtle elements) progressively, inconsistencies that point to illegal conduct
might be immediately recognized and managed. Consistent confirmation frameworks
gain by the foundation and constant nature of internet business frameworks.
Truth be told, consistent confirmation frameworks depend on the framework being
guaranteed to be a fast and solid wellspring of important information, on the
grounds that the affirmation framework must, thusly, give its own particular
administration of conveying opportune affirmation and announcing data. Such a
framework will have the capacity to recognize fake movement in a web based
business framework in a subtle way. There is a need to build up an affirmation
framework that can be effectively coordinated into existing frameworks, be adaptable
to adjust to various associations and authoritative change, and give control
over the confirmation procedure transactions
for fraud will be developed (Perols et al.,
along the way will be the various continuous assurance methods for ecommerce
fraud detection, before we finally settle on using the SCARF. An applied model
relating the viewpoints and ideas related with the continuous checking of web
based business (Systems Control Audit Review File) method to execute an
affirmation framework that will give confirmation to monetary exchanges for a
business to customer internet business store. This framework, called eSCARF
(electronic SCARF), will be adjusted for the IBM WebSphere Commerce (conversely
alluded to as WebSphere) condition from a model eSCARF framework created by Ng
and Wong. Following the execution of eSCARF, a client assessment of the
framework will be obtained from experts with involvement in inspecting. The
assessment will be acquired by playing out an assessment review, evaluating
traits of the framework from an inspector’s point of view, taking a gander at
its plan quality and saw convenience. This will help the future and progressing
improvement of eSCARF by giving important client contribution, and shedding
further knowledge into inspectors’ prerequisites for constant confirmation
frameworks (Lennox et al., 2010).
frauds location aptitude. To discover the frauds in electronic installment.
Distinguish extortion by utilizing eSCARF. How does a consistent confirmation
framework function. Do evaluators locate that nonstop affirmation framework are
gainful for internet business framework. Utilizing eSCARF review methods which
factors are vital to plan of persistent confirmation framework.
al.,2011)Electronic trade identifies with the use of electronic correspondence
systems to direct business exchanges. The rise of internet business in the
public arena has significantly affected upon how individuals oversee and lead business.
It has changed how organizations work inside, while likewise giving them the
chance to venture into new, beforehand untappable, markets. The universal idea
of web based business has additionally quickened globalization as prompt data
trade is conceivable anyplace on the planet. The littlest of firms utilizing
web based business possibly approach a worldwide market. The biggest of firms
have reclassified or renovated themselves in light of the approach of internet
business. In fact, online business influences the way business is led, as well
as its early impact resonates through to changing the world economy.
al.,2011)Regardless, this new measurement of business has issues, obstructions
and burdens that repress its extension. It is a wonder experiencing constant,
fast change and development. Expanding levels of incorporation of online
business frameworks into business has prompted an expanding level of dependence
on these frameworks. Inter organizational frameworks and internationally conveyed
information implies that guaranteeing the accessibility, respectability and
secrecy of the data these frameworks procedure is of central significance.
Tragically, it is the pace of web based business framework improvement that
opens up the colossal test of guaranteeing those same frameworks are secure.
This postulation looks at particularly the danger of misrepresentation which is
the biggest security hazard that has coordinate ramifications upon the income
streams and expenses of a business.
al.,2010)It is thus that web based business security ought to get collective
consideration from examine establishments and business associations, to such an
extent that security might have the capacity to keep in venture with the most
recent progressions in web based business . Current methodologies have a
tendency to be divided in nature, because of the wide assortment of frameworks
in the commercial center, and the pattern of interorganizational frameworks
joining implies that unless a more bound together way to deal with surging up
security is taken, the ascent in number of focuses a vast web based business
framework has that are exploitable will be progressively impeding.
framework helpless against various kinds of extortion stands to be a huge risk
over more conventional methods for business and undermines the engaging quality
of web based business. In addition, clients that see that their online business
exchanges are powerless to misrepresentation are not supported. Just when security
frameworks are produced that can, with a sensible level of adequacy, recognize
extortion, will this obstruction to online business take-up be assuago take
part in such business.
(Chui et all2011)The
Impact of E-Commerce There can be no denial that online business has made a
particular and tremendous impact upon the overall economy. Its consolidation
into society has affected the ways people administer and coordinate business.
The spread of electronic business will continue as affiliations use it to fabricate
proficiency and furthermore another street for arrangements and organization.
All things considered, Clarke predicts that business-to-business (B2B) and
businessto-client (B2C) online business will end up being well known to the
point that most associations will be constrained to enter the automated economy
in order to hold high ground. In an examination including the primary portion
of 2000, the Internet Economy was, in the United States, found to help more
than 3 million specialists. Online organizations numbered 550,000 by mid-2000 ,
up 30 percent from the earlier year.
al.,2011)The United States Department of Commerce evaluated that retail web
based business deals for the final quarter of 2001 totaled $10 billion, up from
$5.3 billion in a similar period in 1999. Interestingly, add up to retail deals
were $821.2 billion and $860.8 billion in the final quarter of 1999 and 2001
separately. In spite of the fact that web based business represents a miniscule
part of all retail deals, online business deals have multiplied proportionate
to add up to retail deals in the two year time frame, mirroring an expanding
measure of web based business utilization. That online business deals just make
around one percent out of aggregate retail deals exhibits there is a lot of
space for web based business to keep venturing into..
al.,2010)From an overall point of view, IDC found that web based business
spending grew 68 percent in the vicinity of 2000 and 2001 to reach $600
billion. IDC gauges that this will keep expanding to a monstrous $1 trillion
out of 2002. The numbers above are essentially in reference to B2C exchanges.
It is proposed that B2B exchanges exceed B2C ones with the Gartner Group
anticipating 2004 overall B2B incomes at $7.3 trillion. It is this benefit
potential that has attracted financial speculators into putting into ‘website’
organizations which are endeavoring to ‘ride the wave’ and set up themselves as
(Kuktaite et al.,
2012)There are numerous different measurements that might be refered to. In any
case, one thing is clear – that web based business’ unmistakable quality in
business is expanding. In the following couple of years, this development is
estimated to proceed unabated.
From an authoritative
and administration point of view, the progressions web based business has
fashioned have been similarly as sensational. Most remarkably, the rebuilding
of the ‘Enormous Five’ multinational bookkeeping firms to isolate their
internet business counseling arms from their reviewing arms. The impulse for
this is to guarantee that their review work isn’t traded off as an
irreconcilable situation exists if a firm both counsels and reviews a similar
customer. Accenture’s detachment from Andersen, thus, likewise gave it autonomy
to such an extent that when Andersen was shaken by the fall of Enron and
weighty legitimate procedures, Accenture was generally untouched.
PricewaterhouseCoopers has spun off its counseling arm which was obtained by
IBM, Deloitte Touche Tohmatsu spun off its counseling arm into Braxton, with
KPMG similarly transforming theirs into BearingPoint.
al.,2012)Aside from deals and showcasing, web based business frameworks are
likewise utilized for operational and supply purposes, including money,
coordinations and acquisition. Officeholder firms particularly have figured out
how to exploit these sorts of frameworks, empowering cost diminishment and more
prominent process efficiencies.
Materials and Methods:
This exploration will identify fakes in web
based business by utilizing eSCARF (electronic System Control Audit Review
File). In this work installed programming review modules are include that
constantly screen exchanges. SSL (Secure Socket Layer) innovation is powerfull instruments
that is use for security. It gives visual prompts like bolt symbol or green
bar. Also, we utilize SQL (Structure Query Language) summons for move down
information. SQL use to speak with database refresh information on database,
recover information from database.
SQL and Oracle instruments will be utilized.
Kamaluddin, Z.M. Sanusi, and K.S.Khairuddin 2014. Accountability in financial
reporting: detecting fraudulent firms. Procedia – Social and Behavioral Sciences, 145,
Fero E.H., T.M Kwon , V.S Pastena , and K.Park 2000 . The
efficacy of red flags in predicting the SEC’s targets: an artificial neural
networks approach. Intelligent Systems in
Accounting, Finance & Management,
Gaganis. C., 2009 . Classification techniques for the
identification of falsified financial statements: a comparative analysis. Intelligent Systems in Accounting, Finance
& Management, 16, 207–229.
Kaminski. K. A., T.S
Wetzel , & L. Guan 2004 . Can
financial ratios detect fraudulent financial reporting? Managerial Auditing Journal, 1, 15–28.
Kirkos. E., C.H.Spathis, and Y. Manolopoulos, Y. (2007).
Data mining techniques for the detection of fraudulent financial statements. Expert Systems with Applications, 32,
Lenard. M. J., and
P.Alam 2009. An historical perspective on fraud detection: from bankruptcy
models to most effective indicators of fraud in recent incidents. Journal of Forensic & Investigative
Accounting, 1, 1–27.
Perols. J., 2011.
Financial Statement Fraud Detection: An Analysis of Statistical and Machine
Learning Algorithms. Auditing: A Journal
of Practice & Theory, 30, 19–50.
Persons. O., 1995. Using financial statement data to
identify factors associated with fraudulent financing reporting. Journal of Applied Business Research, 11,
Pustylnick.I., 2009. Combined algorithm for detection of
manipulation in financial statements. SMC University,
Pustylnick. I., 2012.
An algorithm for the detection of revenue and retained earnings manipulation. Accounting and taxation, 4, 95–105
Ravisankar. P., V.Ravi
, R.G Raghava , and I. Bose 2011. Detection of financial statement fraud and
feature selection using data mining techniques. Decision Support Systems, 50, 491–500.
Song. X. P., Z.H Hu ,J .G Du J. G., and Z.H Sheng 2014.Application of Machine
Learning Methods to Risk Assessment of Financial Statement
Kaiyoong .D., Ruzhang, G. hong . “Analysis of study on
detection of credit fraud in E – Commerce”
future computer sciences of application (ICFCSA), 2011 , P (12- 15)
Malanzato . R ., M.Neubert ,A.M Peleeira, A.P . “Feature Extraction
for fraud detection in electronic marketplaces” web congress, 2009 pg (182 – 192)
Chun. H. Y., P.C Tsui
., C.S wesi .,”Developing the continuous Assurance Embedded continuous audit
web services”, Asia – Pacific services
computing conference, 2008, APSCC, 08 Pg (1049 – 1054)
Alles. M. G., A . Kogan , and M.A Vasarhelyi. 2002. Feasibility and economics . of continuous assurance, Auditing: A Journal of Practice and Theory, vol. 21
(1), pg. 125-138 Addison-Wesley;
Anandarajah, Benjamin and Lek, Monkol (2000).
“Using Data Mining to Detect E-Commerce Fraud”, Report No.
Fayyad. G., S.P.S
Piatetsky, and R.E Uthurusamy. ” Advances in Knowledge Discovery and Data
Mining”. pp. 83-115, AAAI/MIT Press.
Groth. R., 2000. Data
Mining- Building Competitive Advantage, Prentice Hall.
Wong. K.,B. Ng, N. Cerpa , and R. Jamieson 2000. ” An Online Audit Review System for
Electronic Commerce”. Proceedings of the
Thirteen Bled Electronic Commerce Conference, Slovenia, pp 19-21.