A Systematic Literature Review of Fraud Detection Metrics in Business Processes

Abstract

Fraud is a primary source of organization losses, amounting to up to 5% of yearly revenues. Process-based fraud (PBF) is fraud involving a deviation from the standard operating procedure (SOP) of business processes. PBF hinders the achievement of business objectives because business processes operationalize organizational strategies. A systematic content analysis of the literature was conducted on fraud detection metrics in business processes. The current state of fraud detection was surveyed by focusing on PBF metrics while including all relevant conceptual perspectives of PBF detection. The findings indicate that a large body of research has examined detection metrics for possible fraud, but less attention has been paid to PBF. In addition, the currently available PBF detection metrics do not adequately address the needs of different conceptual perspectives on business processes. For example, metrics may be undefined for one or more of the following: components of a business process, business process perspectives, critical information for auditing the business process, and business process presentation layers. This paper addresses these gaps by paying attention to PBF and various conceptual perspectives for a successful PBF detection approach. INDEX TERMS Business process fraud, fraud detection, fraud indicators, fraud metrics, process-based fraud, systematic literature review.

Auditing Techniques to Avoid Cost Accounting Frauds

“…The research findings showed that, a great portion of research had examined detection metrics for possible fraud, but less attention had been paid to Process-Based Fraud (PBF). Also, the already available PBF detection metrics did not sufficiently address the needs of separate conceptual perspectives on firm processes (Omair and Alturki, 2020). Aslan and Kızıl's study (2019) titled "Üretim Maliyetlerinin Denetimine Genel Bir Bakış" stressed that, audit is a very important and critical for businesses in today's business world.…”

Multi-Dimensional Fraud Detection Metrics in Business Processes and their Application

“…The results of the literature review on PBF detection metrics 4 are summarized in Fig. 4 in the form of a literature map [11]. The literature map illustrates the topics relevant to fraud detection metrics in business processes, as well as the frequency of their recurrence in the literature.…”

“…The literature map illustrates the topics relevant to fraud detection metrics in business processes, as well as the frequency of their recurrence in the literature. Omair and Alturki [11] demonstrated that, at present, the explicitly defined PBF detection metrics, which are listed in Table Ⅰ, do not adequately address the essential conceptual perspectives of business process.…”

“…Business processes should be examined to detect any associated potential fraud risks that may threaten the achievement of business objectives [10]. However, at present, PBF detection metrics are not well addressed [11]. They are incomplete, overlapping, scattered, and not standardized [11].…”

“…However, at present, PBF detection metrics are not well addressed [11]. They are incomplete, overlapping, scattered, and not standardized [11]. Furthermore, the increase in fraud in recent years reflects the persistent nature of the issue [12].…”