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How to Detect Business Fraud

economist.com

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Re: How to Detect Business Fraud

#21

Post by bryanrasmussen »

clairity wrote: post #15

it would be interesting to codify the known heuristics of forensic accounting into a software package (maybe even AI all the things!), then create a company out of it in partnership with prosecutors and regulators to root out fraud like this through both technological and legal means. i'm sure there have been some efforts to that end, though not commonly known. it would help rebalance the legal system toward the serv…

something like https://linkurio.us/

built on Neo4J, that's how I know about them.

on edit: you might also like to read https://commons.erau.edu/cgi/viewcontent.cgi?article=1401&co...

Re: How to Detect Business Fraud

#23

Post by clairity »

camjohnson26 wrote: post #19
clairity wrote: post #15

it would be interesting to codify the known heuristics of forensic accounting into a software package (maybe even AI all the things!), then create a company out of it in partnership with prosecutors and regulators to root out fraud like this through both technological and legal means. i'm sure there have been some efforts to that end, though not commonly known. it would help rebalance the legal system toward the serv…

The problem is getting anyone to care while the fraud is still making money

that's the point of combining it with lawyers--you find clients, possibly grouped into class actions, to sue the fraudsters (and make money that way).

Re: How to Detect Business Fraud

#24

Post by spsrich2 »

camjohnson26 wrote: post #19
clairity wrote: post #15

it would be interesting to codify the known heuristics of forensic accounting into a software package (maybe even AI all the things!), then create a company out of it in partnership with prosecutors and regulators to root out fraud like this through both technological and legal means. i'm sure there have been some efforts to that end, though not commonly known. it would help rebalance the legal system toward the serv…

The problem is getting anyone to care while the fraud is still making money

Modern Business 101!

Re: How to Detect Business Fraud

#25

Post by elliekelly »

The China Hustle[1] is a great documentary about the systemic securities fraud committed by Chinese companies selling into the American markets in a way that allows them to avoid much of the disclosure and due diligence typically required. It follows investors from the Muddy Waters firm mentioned in the this article and was made by the same group who did documentary version of The Smartest Guys in the Room.

I believe the film is currently streaming on Hulu.

[1] https://en.wikipedia.org/wiki/The_China_Hustle

Re: How to Detect Business Fraud

#26

Post by applecrazy »

bryanrasmussen wrote: post #21
clairity wrote: post #15

it would be interesting to codify the known heuristics of forensic accounting into a software package (maybe even AI all the things!), then create a company out of it in partnership with prosecutors and regulators to root out fraud like this through both technological and legal means. i'm sure there have been some efforts to that end, though not commonly known. it would help rebalance the legal system toward the serv…

something like https://linkurio.us/ built on Neo4J, that's how I know about them. on edit: you might also like to read https://commons.erau.edu/cgi/viewcontent.cgi?article=1401&co...

That looks strikingly similar to what Palantir’s Gotham product looks like.

Re: How to Detect Business Fraud

#28

Post by [deleted] »

advisedwang wrote: post #14

Good investigative reporting into shady business practices good for this world. However short selling companies before dropping your investigation is a massive conflict of interest. Muddy waters is incentivized to produce a scandalous hit piece, rather than necessarily do fair or accurate reporting. They will make money regardless. The damage their reporting does may make a self-fulfilling prophecy, ensuring they don…

[deleted]

Re: How to Detect Business Fraud

#29

Post by Kalium »

clairity wrote: post #15

it would be interesting to codify the known heuristics of forensic accounting into a software package (maybe even AI all the things!), then create a company out of it in partnership with prosecutors and regulators to root out fraud like this through both technological and legal means. i'm sure there have been some efforts to that end, though not commonly known. it would help rebalance the legal system toward the serv…

If you can reliably determine what companies and securities are fraudulent more accurately than the rest of the market and faster than government entities, then you can use this to make rather a lot of money as a short-seller.
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