FINANCIAL REGULATION AND CORPORATE FRAUD IN THE DIGITAL AGE

AUTHOR – MRS. USHARANI MC* & NIVEDITA SAHU**, LLM SCHOLAR (BUSINESS LAW)* & ASSISTANT PROFESSOR* AT JSS LAW COLLEGE, MYSURU

BEST CITATION – MRS. USHARANI MC & NIVEDITA SAHU, FINANCIAL REGULATION AND CORPORATE FRAUD IN THE DIGITAL AGE, ILE MULTIDISCIPLINARY JOURNAL, 3 (1) OF 2024, PG. 225-250, APIS – 3920-0007 | ISSN – 2583-7230.

ABSTRACT

This article investigates the changes in financial governance structures that have occurred in response to the rising incidences of corporate misconduct in this digital age. This is the time when the much embraced digital advances are changing the dynamics of financial services and commerce with an opportunistic age that has never been experienced before in the world. As banks embrace mobile banking, more so to the advent of cryptocurrencies, the internet, and other high technological applications, activities associated with financial services have transcended the conventional boundaries as well as opened inviting portals for fraudulent acts. These customary structures of regulation were fit to combat discrimination only within the organized financial economy, thus after recovering from leagues of counterfeits, they are unable to cope up with the highly digitized modern finance.

This article elucidates the research on the emerging developments in these areas, focusing on examples where new or altered policies and practices have addressed problems related to digital frauds like antisocial behaviors in cybernetworks and the threat posed by the informal economy in the emergence of new currencies. The national authorities and international organizations are more and more adopting high tech in the combat of the risks. The other important in the list of technologies is the one facilitated by the use of artificial intelligence in transactions monitoring and the use of blockchain, which enable faster and clearer detection of any suspicious activity, as well as provide safe and secure databases of records. It is also reported that international spending is helpful when dealing with problems of a financial crime in an ever-growing digital economy.

A risk is clearly shown by the research but a few more useful fraud detecting instruments are presented. Still this would be mainly conditional to the pace of technological advancements in relation to the pace of the different regulatory measures being put in place to check such advances. Thus, the ideals of the century demand for regulatory change to keep pace with the technological one.

Therefore, the horizon of the century asks for regulatory evolution to adapt with technological innovation so as to ensure production of protection shields in the twenty-first century against financially sophisticated fraudulent tips.

KEYWORDS : Digital Finance, Corporate Fraud, Regulatory Challenges, Cryptocurrency Fraud, Artificial Intelligence (AI), International Cooperation