Journal of Economic Criminology最新文献

{"title":"Harnessing artificial intelligence and machine learning for fraud detection and prevention in Nigeria","authors":"Oluwaseun Isaac Odufisan ,&nbsp;Osekhonmen Victory Abhulimen ,&nbsp;Erastus Olarenwaju Ogunti","doi":"10.1016/j.jeconc.2025.100127","DOIUrl":"10.1016/j.jeconc.2025.100127","url":null,"abstract":"<div><div>Fraud poses a significant threat to Nigeria's burgeoning digital economy, impacting sectors like finance, e-commerce, healthcare, and education. Traditional methods struggle to keep pace with evolving fraud schemes. This paper investigates the potential of Artificial Intelligence (AI) and Machine Learning (ML) for enhanced fraud detection and prevention in Nigeria. We explore various AI methodologies, including supervised, unsupervised, and deep learning. We discuss their applications in anomaly detection, behavioural analysis, risk scoring, and network analysis. By leveraging AI's continuous learning capabilities, organizations can adapt to novel fraud tactics. The paper highlights the benefits of AI-powered fraud detection, including increased efficiency, improved accuracy, and proactive risk mitigation. However, challenges like technical limitations and regulatory considerations are acknowledged. Lastly, we examine the promising future of AI and ML in transforming the financial crime prevention situation in Nigeria.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100127"},"PeriodicalIF":0.0,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136826","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Is financial stress a facilitating factor in cartel formation?","authors":"Jesper Fredborg Huric-Larsen","doi":"10.1016/j.jeconc.2025.100126","DOIUrl":"10.1016/j.jeconc.2025.100126","url":null,"abstract":"<div><div>It is well-known that failing to achieve key organizational goals may pressure managers to commit fraud, but can it be a facilitating factor in cartel formation as well? The purpose of this study is to understand if firms known to have been in a cartel were under financial stress in the period leading up to the cartel formation. A trend analysis is used to examine the performance of the firms before, during, and after the cartel period. The study uses accounting data on firms belonging to sanctioned cartels. In addition, the data is used to determine if firms can achieve joint profit maximization and what happens to firm performance after the cartel is broken down. The results support the proposition that financial stress can be a motivating factor for cartel formation. Moreover, the results show that several firms fall short of benefitting from cartel participation and that cartel breakdown often leads to a worse than initial outcome. The conclusion is that financial stress increases the chances of firms engaging in cartel activity. And, that structural break analyses can likely detect cartels using trends in the performance of firms.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100126"},"PeriodicalIF":0.0,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Preventing fraud in crypto payments","authors":"Louise Damkjær Christensen","doi":"10.1016/j.jeconc.2024.100124","DOIUrl":"10.1016/j.jeconc.2024.100124","url":null,"abstract":"<div><div>When paying with a payment instrument in fiat currency within the EU, the transaction is covered by the PSD2, which provides prudent protection for payers and their payment instruments. When the transaction is instead executed in bitcoin, an unbacked crypto-asset, the transaction is not covered by any EU regulation despite it being used as a method of payment for goods and other services. This leaves consumers in a bad position if their electronic wallet has been abused for fraudulent payments in unbacked crypto-assets as the victim bears the full loss and there is no option for rectification. Change is warranted around crypto payments as the current legal situation leaves consumers unprotected and vulnerable to digital economic crime. This article examines possible solutions to deter criminal activity in the crypto economy, and how to make financial regulation more adept to make crypto payments safer and protect payers in cases of payment fraud. The article concludes that crypto payment fraud is already criminalised in criminal legislation, but changes can be made in financial law to provide protection for the victims of crypto payment fraud.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100124"},"PeriodicalIF":0.0,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Metaverse crimes in virtual (Un)reality: Fraud and sexual offences under English law","authors":"Andreas Karapatakis","doi":"10.1016/j.jeconc.2024.100118","DOIUrl":"10.1016/j.jeconc.2024.100118","url":null,"abstract":"<div><div>The technological evolution has not only opened new frontiers but has also become an indispensable part of our daily lives. However, the technology that enhances our lives presents a dual reality—it offers opportunities for criminals while creating challenges for law enforcement. Fraud, particularly, has become a pervasive issue. In response, virtual asset service providers must take measures to tackle cryptocurrency-related fraud. Nevertheless, this becomes challenging if the perpetrator exists solely within the virtual world. In 1992, Neal Stephenson used the term ‘Metaverse’ to describe a virtual world where people interact with each other using avatars. Over time, the Metaverse has transformed into a complex concept akin to 'cyberspace'. The Metaverse is a virtual environment that uses technologies to mimic the real world. As this virtual space became intertwined with financial transactions, especially through cryptocurrencies, the Metaverse evolved into a medium for perpetrating scams. Within this context, the article addresses the challenges associated with criminal activity in the Metaverse. Considering the potential applications of AI, cryptocurrencies and Non-Fungible Tokens, three main challenges can be identified: 1) decentralisation, 2) anonymity of the user, and 3) lack of regulation. This article examines the applicability of existing legislation to regulate criminal activity in the Metaverse through doctrinal research. Using a comparative approach, it analyses the challenges of addressing virtual crimes by contrasting fraud (Fraud Act 2006) with sexual assault (Sexual Offences Act 2003), highlighting the complexity of addressing crimes involving physical contact in virtual spaces compared to financial crimes.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100118"},"PeriodicalIF":0.0,"publicationDate":"2024-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136814","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Using data analytics to distinguish legitimate and illegitimate shell companies","authors":"Milind Tiwari ,&nbsp;Adrian Gepp ,&nbsp;Kuldeep Kumar","doi":"10.1016/j.jeconc.2024.100123","DOIUrl":"10.1016/j.jeconc.2024.100123","url":null,"abstract":"<div><div>Shell companies can be a legitimate entity but can also been used for illicit activities such as money laundering. Users of shell companies have included illegal arms dealers, drug cartels, terrorists and cyber-criminals, as well as legitimate businesses. To assist in distinguishing between legitimate and illegitimate uses of shell companies, we develop a data-driven model to detect shell companies that are being used for money laundering. We use a hybrid approach combining graph analytics and supervised machine learning. The resulting detection models have an impressive classification accuracy ranging between 88.17 % and 97.85 %. We found no prior study that developed such models to detect illicit shell companies using publicly available information as done with our models. Beneficiaries of this work include government officials and compliance professionals, particularly accountants, tax officials and anti-corruption agencies.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100123"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136815","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Assessing the impact of socioeconomic disparities on criminal behaviors in oil producing communities in Niger Delta Nigeria","authors":"Godwin Egbe","doi":"10.1016/j.jeconc.2024.100119","DOIUrl":"10.1016/j.jeconc.2024.100119","url":null,"abstract":"<div><div>This study investigates the rise of social inequalities in oil-producing communities in Nigeria's Niger Delta, identifying factors that contribute to socioeconomic disparities. Over the last two decades, these communities have endured environmental degradation, youth violence, militancy, and conflict with transnational oil companies. The study uses relative deprivation and general strain theories to explain variances in the living standards of residents. Primary data gathered through surveys revealed that income and education levels are significant predictors of inequality and criminal behavior. The policy implications underline the importance of effective checks and balances in community development committees, with a focus on grassroots development and accountable administration.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100119"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An opportunity lost? The declining role of authorised covert human intelligence sources in combating organised crime","authors":"Ian Stanier ,&nbsp;Jordan Nunan","doi":"10.1016/j.jeconc.2024.100120","DOIUrl":"10.1016/j.jeconc.2024.100120","url":null,"abstract":"<div><div>Combatting organised crime, requires Agencies to deploy a range of collection capabilities to identify community threats, to accurately select and prioritise organised crime targets and to inform operational decision-making. Central to this effort is the ability to identify, recruit and deploy Covert Human Intelligence Sources (CHIS). It is therefore paradoxical that the United Kingdom’s CHIS authorisations have been in steep decline since the enactment of the bespoke <em>Regulation of Investigatory Powers Act</em> 2000 (Regulation of Investigatory Powers Scotland Act, 2000). This research seeks to critically discuss as to what are the key factors contributing to this decline. Consequently, this review suggests that the decline in CHIS authorisations are to be found in a complex configuration of factors. Two stand out as significant; i) the impact of resource reduction on CHIS operational capacity and capability, and ii) an emergence of a culture of fear and risk aversion as a constraining factor on CHIS recruitment and use.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100120"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bidirectional relationship between corruption and economic performance in Tanzania","authors":"Lucas Salati ,&nbsp;Maurice Mbago ,&nbsp;Dimpna Mosha","doi":"10.1016/j.jeconc.2024.100121","DOIUrl":"10.1016/j.jeconc.2024.100121","url":null,"abstract":"<div><div>Corruption has resulted in numerous social, economic, and developmental issues in both developed and developing nations. The study applied Vector Autoregression approach to analyze and model bidirectional relationship between corruption perceptions index and three macroeconomic variables, namely; unemployment, inflation, and Gross Domestic Product growth rate which measure economic performance in Tanzania. The analysis covered the period from 1998 to 2021. The results show that the corruption perception index in Tanzania has been increasing steadily and significantly since 1998 and has a deterministic trend. In contrast, uncertainty and irregularity seem to best describe the distribution and pattern of unemployment, inflation and Gross Domestic Product growth. The statistical insights from impulse response analysis and forecast error variance decomposition show economic performance is closely related to corruption. Therefore, unfavorable economic performance serve as warning signs of corruption and vice versa. The study concludes that the main cause of corruption is the individual's struggle to escape prevailing economic situations, including inflation and unemployment. The result offers new anti-corruption strategies that consist of integrating political and legal reforms and promoting a stable and healthy economy.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100121"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136820","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Trade-based money laundering and domestic resource mobilization in oil-exporting Countries","authors":"Joshua Adeyemi Afolabi ,&nbsp;Musibau Adetunji Babatunde","doi":"10.1016/j.jeconc.2024.100122","DOIUrl":"10.1016/j.jeconc.2024.100122","url":null,"abstract":"<div><div>The rapid evolution of global trade offers great productivity gains to participating countries but also raises the likelihood of losing domestic resources through trade-based money laundering. This paper empirically examined whether trade-based money laundering affects domestic resource mobilization in nine selected Organization of Petroleum Exporting Countries (OPEC) member states from which panel data spanning 2009–2018 were obtained. The panel quantile regression estimator was used to analyze the data. The empirical result showed that trade-based money laundering reduces government revenue and weakens the ability of the government to mobilize domestic resources to fulfil its fiscal responsibilities. The magnitude of impact exhibits an increasing trend as the adverse effect is more pronounced in countries with high domestic resources and less severe in countries with low domestic resources. Therefore, policymakers and governments of OPEC member states should design and ensure the effective implementation of anti-money laundering policies to tame trade-based money laundering.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100122"},"PeriodicalIF":0.0,"publicationDate":"2024-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136821","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The dark arts of crypto laundering and the nigerian financial ecosystem: Examining regulatory perspectives of virtual assets and virtual asset providers in mitigating money laundering risks in Nigeria","authors":"Oluwabunmi Adaramola","doi":"10.1016/j.jeconc.2024.100117","DOIUrl":"10.1016/j.jeconc.2024.100117","url":null,"abstract":"<div><div>The last five years have seen immense growth in the Nigerian financial services sphere, particularly with the introduction of innovative ways to make, trade and exchange money in a largely unregulated sphere. One of such developments is virtual assets which has opened up a lot of doors in the world of FinTech and attracted the attention of financial industry regulators. The Central Bank of Nigeria (CBN) and other financial regulatory agencies seem to however waiver in their governance systems of virtual assets, oscillating between an implied soft ban through various circulars in 2021 on one hand and a desire to critically understand the operations of virtual assets within the ambit of the Securities and Exchange Commission rules in 2022. However, within this timeframe, various cryptocurrency trading platforms quickly found ways to illegally circumvent and allow users to continue trading, regardless of the implied ban, taking advantage of financial agencies' lackadaisical approach to regulating their activities. Current research therefore suggests that there is a continued operation of such exchange platforms outside regulatory boundaries where in May 2023, Patricia, a popular Nigerian cryptocurrency exchange platform, launched its own digital tokens. In response, the CBN released a guideline in December 2023 on the operations of bank accounts for virtual assets and virtual asset service providers (VASPs), a first step towards regulating virtual assets in Nigeria. This paper therefore aims to critically assess the anatomy and footprint of cryptolaundering, particularly in Nigeria’s banking and finance sector, as well as current and future attempts at regulating the potential money laundering risks of virtual assets. Particularly, this paper aims to examine the potency of current regulatory perspectives and Nigeria’s emerging governance system for virtual assets and VASPs side by side with its current economic and social realities and the overall regulatory nature of Nigeria’s financial ecosystem.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100117"},"PeriodicalIF":0.0,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}