Fintech is a vast domain that includes a wide range of activities, from data security to financial service delivery, which helps companies automate their business operations and introduce the latest financial products and services. The problem of financial fraud has a significant impact on the finance sector and needs behavioral understanding from the perspective of both the fraudster and the consumer. The purpose of the chapter is to identify and analyze the various aspects of financial fraud in the age of Fintech and highlight the emerging research areas and trends. Co-occurrence and co-citation analyses were used to identify emerging trends and research directions related to fraud detection in Fintech research. The cluster analysis revealed five clusters which have been explained further. The research employs thematic clusters that identify fundamental, various themes based on their centrality and density. These themes and streams are intended to guide researchers, scholars, policymakers, and practitioners towards more precise, distinctive, and important areas of focus.
Top1. Introduction
The financial sector has consistently faced an enduring struggle with financial fraud, leading to substantial economic losses, reputational harm, and the erosion of trust among stakeholders (Roszkowska, 2021). The issue of financial fraud exerts a substantial influence on the financial sector and needs behavioral understanding from the perspective of both the fraudster and the consumer. It can cause a loss of trust in the industry, lead to economic instability, and affect the cost of living. The conventional methods like auditing, which rely on manual techniques, are not very effective and accurate in tackling this issue because it is a complex problem. However, data mining-based techniques have demonstrated their usefulness in detecting minor abnormalities in vast sets of data. The financial industry has been impacted in a significant manner with the creation of machine-readable data, which has been made possible by the continuous advancement in computational power and storage. With the rapid advancement of Fintech, which encompasses various technologies such as mobile banking, online payments, blockchain, and artificial intelligence, new opportunities for financial fraud have emerged (Bhat et al., 2023; Hoang et al., 2022). The advent of fintech innovations has transformed conventional financial systems, offering increased convenience and efficiency. Nevertheless, these innovations have also brought forth new vulnerabilities and risks that can be exploited by fraudulent individuals (Luo et al., 2021). The intersection of finance and technology has given rise to a multifaceted and ever-changing landscape in which both traditional and emerging forms of financial fraud coexist. This necessitates a comprehensive understanding and the implementation of effective countermeasures. It's crucial to note that financial fraud can have significant repercussions on the stability of financial systems (Pacelli et al., 2022). Through the examination of financial fraud, we can pinpoint weaknesses, assess risks, and formulate strategies to protect the integrity of financial markets, institutions, and economies. Financial fraud can also lead to substantial economic losses, affecting individuals, businesses, and governments. By examining the economic impact of fraud, researchers can provide insights into its consequences, helping policymakers and organizations develop strategies to mitigate its effects. Financial fraud can have far-reaching social implications. It can lead to job losses, pension fund erosion, and damage to social welfare programs (Mosteanu and Faccia, 2020). Understanding these broader societal impacts can inform efforts to protect vulnerable populations and promote social justice. Thus, this was the motivation behind choosing this as the research work as it has huge implications in many areas.