Fraud can be described as an intentional deceptive action designed to provide a perpetrator with an unlawful gain and to deny the victim a right. Fraud can take place in different sectors such as finance, investment, insurance, and real estate. Fraud can be found in the sale of property like land, personal property such as art or collectibles, and intangible property like bonds and stocks. The different types of fraud include bankruptcy fraud, wire fraud, credit card fraud, and tax fraud. The individual that commits fraud takes advantage of information available to deceive the victim. In 2019, many companies suffer from fraud, the use of current AI technology can help law enforcement to detect and prevent fraud. Fraud involves a false representation of facts that can be done by intentionally withholding important information or the provision of false statements for the purpose of gaining something through the use of deception. Fraud can be described as a criminal justice issue because it deprives the victim of their rights and violates civil law, criminal law, and it causes loss of money and property. During fraud, the perpetrator of the fraud is usually aware of the information which the victim may not be aware of allowing the perpetrator to deceive the victim. Fraud has a significant negative impact on the society. Credit card fraud has been found to cost billions of dollars every year. Companies and individuals report millions of losses on an annual basis as a result of fraud (Kultur and Caglayan, 2017). The impact of fraud is also apparent as there are new ways of extracting funds from the government, businesses, corporations, and people. There has been a recent surge of online fraud as people start to increasingly undertake transactions online. Mobile transactions and online purchases are increasingly being used today. Fraudsters have found the internet as a good platform to undertake criminal activities and this has resulted in millions of people losing their money on a daily basis. Companies that experience fraud experience loss of reputation and loss of client trust. Individuals that go through fraud experience loss of income and devastating losses. The social justice violation that should be addressed by the crime of fraud is the legal right to property. Fraud involves a deception of a victim that deprives them of their legal right. In a fair and just society, everyone would be able to work and earn what they have worked for. Fraudsters take the monetary gain or benefits of an individual through illegal means. The issue of fraud is also a critical issue because the criminal justice has often been blamed for falling far behind fraudsters. This is especially in the case where frauds fall on non-specialist security or in the general public (Kingston, 2017). In order to protect the rights of individuals, the social justice system should be improved to easily capture fraudsters. Fraud is a global issue that exists in different cultures. The triggers of fraud can be described to be a societal culture that is based on individualism. Individualism is apparent in the global business where it appears that everyone wants to realize gain for themselves. The increasing culture of individualism has made more people to be willing to engage in fraudulent behaviors. Fraud is also high in a culture that does not place emphasis on integrity, honesty, and ethics. Fraud prevention can create a more just society because it reduces suffering through loss of funds and will protect the rights of people. Many people that have been victims of fraud have experienced significant financial losses and some have even gone into debt. Fraud prevention will prevent any such suffering caused by financial losses. Fraud prevention also improves security and will protect the rights of people. Finding fraudsters and imprisoning them for their wrongdoings will mean that those that engage in criminal activities are incarcerated and face the consequences for their wrongdoings. The empirical research analyzed different types of fraud such as wire fraud, identity fraud, and check fraud and how the use of artificial intelligence (AI) systems can be used to prevent fraud. Kultur and Caglayan (2017) established a fraud detection system that could detect fraud transactions up to 93.92% of the time. Wong (2009) proposed the use of AI technology involving neural nets, statistical analysis, and genetic algorithms. Choi and Lee (2018) proposed processing large amounts of financial data through feature selection, sampling and applying algorithms to detect fraud. The use of artificial intelligence was found as a critical tool to help investigators to successfully investigate crime (Hasan et al., 2011). The general analysis of the empirical data showed that fraud cases are increasingly growing and that the use of fraud detection through AI can increase the chances of preventing a fraud. The main branches of the criminal justice system that are impacted by issues of fraud are law enforcement and courts. The law enforcement can help to prevent fraud by taking an active approach towards identifying fraudsters. However, the law enforcement may be lacking in technology and knowledge used by fraudsters. The lack of knowledge could be a hindrance to successfully reducing fraud. The court system can support fraud prevention by making sure that there are huge penalties in terms of number of years served for individuals that have been found to undertake fraud. There are two theoretical models that can be used to differentiate criminal and noncriminal acts. The two models include the consensus model and the second model is the conflict model. The consensus model observes that criminal justice system ought to work cooperatively in order to produce justice while the conflict theory observes that organizations of criminal justice should work competitively in order to produce justice. One of the supreme court decisions that can be used to show the take of fraud is the court case SKILLING v. UNITED STATES (No. 08-1394) 2010. Jeffrey Skilling, was the CEO of Enron before it crashed as a result of committing wire fraud. Skilling was sentenced for 10 years. The case showed that there would be no tolerance to individuals that took part in fraudulent activities. Also, following the Enron scandal, the Sarbanes-Oxley law was passed in order to promote standards of handling financial statements. Social and criminal justice systems work to promote social equality and fairness. The criminal justice system is made of agencies, processes, and governments that control crime and impose penalties on individuals that violate the law. In the society today, anyone that has been fraud irrespective of the financial position will be given a fair judgment. The law enforcement system also ensures that people that undertake unfair practices of criminal fraud are caught and face jail time and financial penalties. The sociocultural variables can impact the criminal justice system by focusing on the number of incarcerate individuals. A large percentage of incarcerated individuals come from poor backgrounds and are mostly African American men. This shows that the current society prohibits both the rich and poor from stealing but when the poor is found, they are the only ones that go to prison. Religion can support the criminal justice system by enabling people to escape the lifestyle of crime and poverty. Religion impacts the psychological well-being of individuals and this can reduce crime incidences like that of fraud. In conclusion, fraud is a criminal justice issue that can be solved through the use of AI technology. Fraud was found to be a criminal justice issue because it deprives people their legal rights and right to property. The advancement of the internet, mobile transfer money, and online purchases has made many people become vulnerable to online financial fraud and identity theft. The law enforcement should solve the issue by making use of advanced AI technologies to solve fraud.
References
Choi, D., & Lee, K. (2018). An Artificial Intelligence Approach to Financial Fraud Detection under IoT Environment: A Survey and Implementation. Security and Communication Networks , 2018 .
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Hasan, R., Raghav, A., Mahmood, S., & Hasan, M. A. (2011, November). Artificial intelligence based model for incident response. In 2011 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. 3, pp. 91-93). IEEE.
Kingston, J. K. (2017, May). Representing, reasoning and predicting fraud using fraud plans. In 2017 11th International Conference on Research Challenges in Information Science (RCIS) (pp. 128-133). IEEE.
Kültür, Y., & Çağlayan, M. U. (2017). Hybrid approaches for detecting credit card fraud. Expert Systems , 34 (2), e12191.
Wong, E. (2009). Employing Artificial Intelligence To Minimise Internet Fraud. International Journal of Cyber Society and Education , 2 (1), 61-72.
