Documentary credit fraud against banks: analysis of Korean cases
Purpose – This paper aims to explore the feature and mechanism of a new type of documentary credit fraud that victimizes banks’ issuing letters of credit (L/C), harming neither the importer nor the exporter and seeks to suggest possible measures to tackle it. Design/methodology/approach – This study analyzed 30 cases of documentary credit fraud against banks that were detected by the Korea Customs Service (KCS) and interviewed three key customs investigators to interpret the case reports more accurately and gain a deeper understanding into the mechanisms governing the fraud. This study draws on routine activity theory and crime pattern theory to analyze the opportunity structures of this fraud. Findings – This study found that the importer that engaged in the fraud cases had established a solid business relationship with the exporter and had established trust with the victimized banks; the banks, despite the fact that they had their own risk management systems to screen out unqualified L/C applicants, wer...
Info-Communicative and Protective Function of the State as Combating Fraud using Sberbank Bank Cards
: Financial crimes are defined as unfair activities that have become widespread in banking structures. The activities of financial fraudsters often have negative consequences before public rules are created that prohibit them. Intensive transformation processes in financial markets, their automation and virtualisation, the spread of remote interaction between banks and their clients, the influence of unauthorised persons on the software and hardware systems of banks, an increase in the number of cases and trading volumes determine the relevance of clarifying the essence of this phenomenon and the peculiarities of its manifestation in banking structures. The novelty of the study is determined by the fact that financial violations can be represented both in the structure of the current activities of banks and the process of interaction with clients and in the structure of expanding the list of services provided. The leading method to study this problem is the method of analysis, which allows to identify and comprehensively consider ways to counter financial crimes in banks to improve the level of financial security. The authors show that structurally, one should take into account, first of all, countermeasures on the part of customers, which often serve as a source of obtaining personal data. In this case, the state function is considered only as a security function for the purpose of possible punishment for fraudulent actions. The practical significance of the study is determined by the possibilities of structural implementation of combating financial fraudulent actions in the context of the development of the information society.
To What Extent Can English-as-a-Second Language Learners Read Economic News Texts?
In decision making in the economic field, an especially important requirement is to rapidly understand news to absorb ever-changing economic situations. Given that most economic news is written in English, the ability to read such information without waiting for a translation is particularly valuable in economics in contrast to other fields. In consideration of this issue, this research investigated the extent to which non-native English speakers are able to read economic news to make decisions accordingly – an issue that has been rarely addressed in previous studies. Using an existing standard dataset as training data, we created a classifier that automatically evaluates the readability of text with high accuracy for English learners. Our assessment of the readability of an economic news corpus revealed that most news texts can be read by intermediate English learners. We also found that in some cases, readability varies considerably depending on the knowledge of certain words specific to the economic field.