Semi-supervised forecasting of fraudulent financial statements
Stamatis Karlos, Nikos Fazakis, Sotiris B. Kotsiantis, Kyriakos Sgarbas · 2016
Prediction of potential fraudulent activities may prevent both the stakeholders and the appropriate regulatory authorities of national or international level from being deceived. The objective difficulties on collecting adequate data that are obsessed by completeness affects the reliability of the most supervised Machine Learning methods. This work examines the effectiveness of forecasting fraudulent financial statements using semi-supervised classification techniques (SSC) that require just a few labeled examples for achieving robust learning behaviors mining useful data patterns from a larger pool of unlabeled examples. Based on data extracted from Greek firms, a number of comparisons between supervised and semi-supervised algorithms has been conducted. According to the produced results, the later algorithms are favored being examined over several scenarios of different Labeled Ratio (R) values.