MATHEMATICAL LOGIC IN ASCERTAINING THE ACCURACY OF THE TERM “CORRUPTION” AS BASIC INTERFACE OF FRAUD IN FINANCIAL INSTITUTIONS

Abstract

The need of financial institutions insurance to continuously fight all manifestations is a topic that is currently and quite actively addressed by various associations, agencies and forums. However, a general approach to this topic is still at a theoretical and educational level. If we take into consideration the indisputable fact that fraud as manifestation of a type of crime has existed as long as financial institutions, that the number of  frauds & corruption in finacial instituions has been considerably increasing for a long stretch of years, and that we can only expect a progressive increase in the number of these criminal acts in the period to come, this paper aims to analyze the fight against frauds in retrospect and thereby point out to the significance of organized fight against frauds and initiate realistically feasible activities of financial institutions as a leader of the market economy so as to enable to act in an organized manner on the road of achieving an optimum level of protection against fraud with corruption prefix. The theme of this expert work is aqpplication of Mathematical logic to a specific type of fraud called “fraud with corruption”. Fraud as a legal category can be detected by establishing certain linguistic terms and processing them as such using mathematical logic. The resulting “true” or “untrue” types of data would be permanently stored on the company server. By pairing input statements using mathematical logic we can monitor the activities of players in financial processes, and generate output statements that would reflect the degree of presence of corrupt activities.