A Formal Analysis of Fraud in Banking Sector

Partha Saha, N. Parameswaran, B.B. Chakraborty, Ambuj Mahanti
2013 2013 46th Hawaii International Conference on System Sciences  
With the proliferation of CBS (Core Banking Service) into various digital channels, the Indian banking sector has witnessed an alarming spectre of fraud. Information asymmetry amongst different agents is the root cause of fraud. In this paper, we propose a logical framework involving multiple agents of different personality types. The agents have different trust quotients for co-agents and information coming from various trust-deficit channels connecting them. A procedural framework based on
more » ... rd party independent authentication on agents' activities is proposed. We also present a case study on customer reimbursement patterns in automobile loan segment. We show how a robust credit appraisal model, coupled with strict monitoring of loan reimbursement and loan recovery strategies achieve reduction of NPA (Non-Performing Assets) of the bank to an acceptable level.
doi:10.1109/hicss.2013.36 dblp:conf/hicss/SahaPCM13 fatcat:y6gqj2tr2rasznjhu7xpcv7hf4