A Comprehensive Analysis of Financial Fraud in Banking and Petroleum Sector of Pakistan

Abstract

Financial fraud is a global issue that is causing instability in the market. It brings risk for individuals, businesses, government, and financial industry. The advancement in the technology made the lives easier but, on the other hand it also increases the opportunities for fraudsters. Pakistan uses traditional methods to detect frauds that is time consuming, involve human efforts, and are not accurate. Western countries have shifted their focus towards AI-based system to detect and prevent frauds. This research paper analyzed the biggest financial fraud in banking and petroleum sectors of Pakistan. The paper further unfolds the causes of frauds. The gap was identified and highlighted the types of frauds that are emerging and how AI systems can be implemented in Pakistan to mitigate the risk. The paper focuses on the reasons of frauds and also induces some suggestions in order to limit the risk.