The Implications of Economic Fraud – Legislative Analysis, Social Impact and Generic Risk Detection Models

Abstract

The purpose of this paper is to investigate the impact that economic fraud is playing in economy, along with a legislative analysis to see if the evolution of legislation keeps track with the methods of fraud. This paper presents the main models for detecting the risk of bankruptcy. This paper presents a theoretical approach to the concept of fraud, explaining how legislation can prevent economic frauds, completed by presenting the social impact that fraud has in the society. The incursion into the field of fraud brought to attention it’s impact in the social and economic life, legislative evolution being the main key to prevent future frauds. The detection and prevention of fraud began with the understanding of a fraud. Knowing why a fraud appears represents the first key in diminishing as much as possible the fraudulent actions, regarding business environment.

Keywords

• fraud
• legislative evolution
• bankruptcy model