The Role of Artificial Intelligence in Early Detection of Financial Statement Fraud in Digital Financial Institutions, AI-Fraud Behavior Integration Model
DOI:
https://doi.org/10.35145/icobima.v3i1.5093Keywords:
Artificial Intelligence, Early Detection, Financial Statement Fraud, Digital Financial Institutions, Renaldo-Veronica AI-Fraud Behavior Integration (AFBI) ModelAbstract
The novelty of this study lies in its qualitative exploration of how Artificial Intelligence is conceptualized, adopted, and integrated into fraud detection systems in digital financial institutions, especially in developing countries. This study also makes Renaldo-Veronica AI-Fraud Behavior Integration Model. This study uses a qualitative exploratory approach, aiming to understand the perceptions, practices, and challenges associated with the use of Artificial Intelligence (AI) for early detection of financial statement fraud in digital financial institutions. The model uncovers how behavioral drivers of fraud (pressure, opportunity, rationalization) intersect with AI adoption drivers (perceived usefulness, ease of use, intention). The Renaldo-Veronica AFBI Model advances fraud theory by integrating psychological and technological constructs in a single analytical framework. Introduces digital rationalization as a modern form of fraud justification, expanding the Fraud Triangle for the AI era. Future research can use quantitative validation of the Renaldo-Veronica AFBI Model using structural equation modeling (SEM) or PLS to test relationships between fraud and AI adoption constructs.
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References
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Boutaba, R. (2018). A comprehensive survey on machine learning for networking: evolution, applications and research opportunities. Journal of Internet Services and Applications, 9(1). https://doi.org/10.1186/s13174-018-0087-2
Creswell, J. W., & Creswell, J. D. (2023). Research Design Qualitative, Quantitative, and Mixed Methods Approaches. SAGE.
Dharmawati, T., Bakri, A. A., Ningrum, E. P., Mahdi, & Renaldo, N. (2023). Improving Internal Audit Quality Through Self Efficacy and Professional Ethics with Top Management Support as a Moderation Variable. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(3), 1–9.
Faisal, N. Al, Nahar, J., Sultana, N., & Mintoo, A. A. (2024). Fraud Detection in Banking Leveraging AI to Identify and Prevent Fraudulent Activities in Real-Time. Journal of Machine Learning, Data Engineering and Data Science, 1(1), 181–197. https://doi.org/10.70008/jmldeds.v1i01.53
Gupta, S., & Mehta, S. K. (2021). Data Mining-based Financial Statement Fraud Detection: Systematic Literature Review and Meta-analysis to Estimate Data Sample Mapping of Fraudulent Companies Against Non-fraudulent Companies. Global Business Review, 1–24. https://doi.org/10.1177/0972150920984857
Hadi, S., Putri, N. Y., Andi, A., Renaldo, N., & Prayetno, M. P. (2024). The Impact of Audit Reputation on Stakeholder Trust: A Qualitative Analysis of Key Influencing Factors. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(2), 368–372. https://doi.org/https://doi.org/10.35145/icobima.v2i2.4390
Junaedi, A. T., Panjaitan, H. P., Yovita, I., Veronica, K., Renaldo, N., & Jahrizal, J. (2024). Advancing Digital and Technology Literacy through Qualitative Studies to Bridging the Skills Gap in the Digital Age. Journal of Applied Business and Technology, 5(2), 123–133. https://doi.org/https://doi.org/10.35145/jabt.v5i2.170
Meidijati, & Amin, M. N. (2022). Detecting Fraudulent Financial Reporting Through Hexagon Fraud Model: Moderating Role of Income Tax Rate. International Journal of Social And Management Studies (IJOSMAS), 3(2), 311–322.
Putra, R., Renaldo, N., Junaedi, A. T., Suhardjo, S., & Veronica, K. (2024). Digital Organizational Citizenship Behavior to Auditors’ Satisfaction and Performance. Nexus Synergy: A Business Perspective, 1(4), 227–235. https://doi.org/https://doi.org/10.61230/nexus.v1i4.83
Renaldo, N. (2024). Integration of Internet of Things and Digital Accounting Systems for Marine Resources Monitoring. Interconnection: An Economic Perspective Horizon, 2(1), 50–59. https://doi.org/https://doi.org/10.61230/interconnection.v2i1.91
Renaldo, N., Sudarno, Hutahuruk, M. B., Suhardjo, Suyono, Putri, I. Y., & Andi. (2022). Forensic Accounting: The Use of Benford’S Law to Evaluate Indications of Fraud (CONTABILIDADE FORENSE: O USO DA LEI DE BENFORD PARA AVALIAR INDICAÇÕES DE FRAUDE). Revista Eletrônica Do Departamento de Ciências Contábeis & Departamento de Atuária e Métodos Quantitativos (REDECA), 9(e57343), 1–15. https://doi.org/10.23925/2446-9513.2022v9id57343
Renaldo, N., Sudarno, Suhardjo, Putri, I. Y., Suyono, Andi, & Hutahuruk, M. B. (2021). Fraud Detection at Rural Credit Banks in Riau Province until the 2019 Financial Report. International Journal of Advanced Multidisciplinary Research and Studies, 1(3), 51–57.
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Sudarno, Priyono, Renaldo, N., Hutahuruk, M. Br., Suyono, Suhardjo, & Andi. (2022). Nature of the Prophet Muhammad Saw’s Amanah in Technology Service Business. International Journal of Advanced Multidisciplinary Research and Studies, 2(4), 506–509.
Sudarno, Renaldo, N., Hutahuruk, M. B., Suhardjo, Suyono, Putri, I. Y., & Andi. (2022). Development of Green Trident Measurements to Improve Environmental Performance: Literature Study. International Journal of Advanced Multidisciplinary Research and Studies, 2(1), 53–57.
Suhardjo, Renaldo, N., Andi, Sudarno, Hutahuruk, M. Br., Suharti, & Veronica, K. (2022). Bonus Compensation and Real Earnings Management: Audit Committee Effectiveness as Moderation Variable. The Accounting Journal of BINANIAGA, 07(01), 89–102. https://doi.org/10.33062/ajb.v7i1.495
Suhardjo, S., Renaldo, N., Sevendy, T., Yladbla, D., Udab, R. N., & Ukanahseil, N. (2023). Accounting Skills, Digital Literacy, and Human Literacy on Work Readiness of Prospective Accountants in Digital Technology Disruption Era. Reflection: Education and Pedagogical Insights, 1(3), 106–115. http://firstcierapublisher.com/index.php/reflection/article/view/48
Utami, I., Astiti, Y. W., & Mohamed, N. (2019). Fraud Intention and Machiavellianism: An Experimental Study of Fraud Triangle. International Journal of Financial Research, 10(5), 269–279. https://doi.org/10.5430/ijfr.v10n5p269
Żywiołek, J., Trigo, A., Rosak-Szyrocka, J., & ... (2022). Security and privacy of customer data as an element creating the image of the company. Management Systems in …. https://doi.org/10.2478/mspe-2022-0019
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Published
2024-11-30
