Solving Modern Crime in Financial Markets

Solving Modern Crime in Financial Markets

Analytics and Case Studies

1st Edition - December 1, 2015

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  • Author: Marius-Cristian Frunza
  • eBook ISBN: 9780128045329
  • Hardcover ISBN: 9780128044940

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This comprehensive source of information about financial fraud delivers a mature approach to fraud detection and prevention. It brings together all important aspect of analytics used in investigating modern crime in financial markets and uses R for its statistical examples. It focuses on crime in financial markets as opposed to the financial industry, and it highlights technical aspects of crime detection and prevention as opposed to their qualitative aspects. For those with strong analytic skills, this book unleashes the usefulness of powerful predictive and prescriptive analytics in predicting and preventing modern crime in financial markets.

Key Features

  • Interviews and case studies provide context and depth to examples
  • Case studies use R, the powerful statistical freeware tool
  • Useful in classroom and professional contexts


Upper-division undergraduates, graduate students, and professionals in finance, accounting, and law who are working with forensic data and analytics to solve financial crimes

Table of Contents

  • 1. Modern Financial Crime

    • Innovation and Crime
    • High Frequency Trading
    • Commodities Markets
    • Social Networks and Financial Crime
    • Cryptocurrencies: a New Monetary Vehicle
    • Assessment of the Link between the Betting Industry and Financial Crime

    2. Forensic Statistics as an Investigation Tool (Theoretical Background)

    • Truth: a Game of Probabilities
    • Statistical Distributions
    • Forecasting Distributions
    • Genetic Algorithms
    • Statistical Hypothesis Tests
    • Non-parametric Techniques
    • Fuzzy Methods
    • Clustering Techniques
    • Support Vector Machine
    • Assessing the Accuracy of a Fraud Detection Mode
    • Benford's Law

    3. Investigation of Crime in Financial Markets (Empirical Studies with Applications in R)

    • Structural Changes in Time Series
    • Exploring Unstructured Data
    • Reading the Balance Sheet of Financial Firms
    • Fraud on the Market Theory
    • Efficient Market Hypothesis Testing
    • Market Prices and Trading Activity
    • Order Book analysis
    • Event Study

    4. Case Studies (Applications in R)

    • LIBOR Manipulation
    • EURIBOR Manipulation
    • The Madoff Case
    • Enron - Worldcom
    • Rating Agencies and Crises
    • The FX Fixing Fix
    • The Case of Greenhouse Gas Emissions Allowances Market

    5. Preventing Crime and Preserving Markets’ Integrity

    • Stronger Financial Regulation Pros and Cons?
    • Efficient Frameworks for Financial Crime Surveillance
    • Joint Structures for Tackling Financial Offense: Criminal Investigators and Market Regulators

Product details

  • No. of pages: 526
  • Language: English
  • Copyright: © Academic Press 2015
  • Published: December 1, 2015
  • Imprint: Academic Press
  • eBook ISBN: 9780128045329
  • Hardcover ISBN: 9780128044940

About the Author

Marius-Cristian Frunza

Dr. Marius-Cristian Frunza's consulting work with investment banks and asset managers allowed him to specialize in risk management, derivative pricing and hedging. His research activity encompasses topics around environmental finance like forestry, energy, and weather derivatives. He graduated from the Ecole Polytechnique in Paris and holds a PhD in mathematics from the Sorbonne university. He is also a partner in Schwarztal Kapital, an independent advisory and investment firm in environmental finance.

Affiliations and Expertise

Schwarztal Kapital, Paris, France

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