Virtual Booth

Integrated Financial Fraud Detection Simulator (IFDS)

¹*Nik Mohd Norfadzilah Nik Mohd Rashid, ²Amirah Husna Rozaidi, ³Tuan Zafierah Tuan Zainazor, ⁴Ahmad Othman, ⁵Noor Emilina Mohd Nasir, ⁶Norlaili A.Rahman, ⁷Norfarah Syahirah Mohd Fadzilah

^1*,2,3,4,6,7School of Accountancy, Faculty of Business and Management, Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu, Malaysia
⁵Faculty of Accountancy, Universiti Teknologi MARA, Dungun Campus, Terengganu, Malaysia

*Corresponding Author: [email protected]

Abstract

The Integrated Financial Fraud Detection Simulator (IFDS) is an innovative system designed to enhance the detection, monitoring, and prevention of financial and tax reporting irregularities within organizations. By integrating forensic auditing principles with advanced technological capabilities, including real-time data analysis, intelligent algorithms, and machine learning techniques, IFDS offers a comprehensive approach to identifying early financial warnings and red flag indicators that signal potential fraudulent activities. This system provides business owners and organizational leaders with critical, actionable insights that enable timely intervention, thereby mitigating legal, reputational, and financial risks. Unlike traditional audit tools, which often rely on retrospective analysis, IFDS operates proactively, offering real-time alerts on suspicious patterns or anomalies in financial and tax reporting processes. Its scalable and adaptable design ensures applicability across various sectors and organizational sizes, positioning it as a versatile solution within the broader landscape of corporate governance and financial risk management. Moreover, the deployment of IFDS contributes to strengthening organizational compliance frameworks, enhancing internal control systems, and promoting ethical business practices. Its societal impact extends beyond the organizational level by fostering market transparency and reinforcing public trust in corporate financial reporting. The system has undergone rigorous validation to ensure both theoretical robustness and practical applicability, making it a valuable tool for researchers, practitioners, auditors, and policymakers interested in advancing the field of financial fraud prevention. As financial ecosystems become increasingly complex, the Integrated Financial Fraud Detection Simulator offers a timely and effective response to the evolving challenges of fraud risk management in contemporary organizational environments.

Keywords: Financial Fraud Detection, Early Warning Systems, Forensic Auditing, Risk Management