EZRA -- Ezra Zask Research Advisors
  • HOME
  • Services
  • FinTech
  • Cryptocurrency
  • INVESTMENT MANAGEMENT
    • Investment Management
    • Alternative Investments
    • Business Development
    • Compliance Policies and Procedures
    • Hedge Fund Services
    • Risk Management
    • Markets and Securities
    • Empowering Investors
    • Securities Litigation
  • Blog
  • RESEARCH
  • People
  • Contact

EZRA'S BLOG

Finding Financial Fraudsters: Quantitative and Behavioral Approaches

1/9/2019

0 Comments

 
Quantitative and Behavioral Approaches by Ezra Zask

Post Madoff due diligence has taken on an increased importance, and new techniques have been developed to identify financial frauds.  This article describes several quantitative methods that can be used to identify potential frauds, including Benford's law, performance drivers and strategy replication, and statistical significance tests.  An extensive analysis of the Madoff Ponzi scheme describes the red and green flags that enabled the fraud to remain undetected for 20 years.  Finally, The article explores the role of behavioral heuristics and fallacies that often enable fraudsters to succeed.  These include representativeness, anchoring, overconfidence, loss aversion, regret aversion, confirmation bias and selective perception, as well as an automatic trust mechanism that allows us to live in society may also help fraudsters in their ploys.   Finding Financial Fraudsters
0 Comments



Leave a Reply.

      Receive Weekly Blog

    Subscribe


    ​Ezra Zask

    Ezra Zask has over 30 years' experience in the finance and investment fields, with a focus on hedge funds, risk management, portfolio management and business development.

    Categories

    All
    Active Hedge Funds
    Alpha
    Alternative Investments
    Behavioral Finance
    Bubbles
    Cryptocurrency
    Due Diligence
    Emerging Markets
    Factor Investing
    Fiduciary Rule
    Financial Crisis
    Financial Fraud
    FINRA
    Hedge Funds
    Pension Plans
    Political Economy
    Trade War
    Valuation

We Would Love to hear from You Soon!


Location

P.O. Box 67
Amenia ny 12501

Telephone

845-789-1263

Email

ezrazask@ezrazask.com
Photo used under Creative Commons from Rawpixel Ltd
  • HOME
  • Services
  • FinTech
  • Cryptocurrency
  • INVESTMENT MANAGEMENT
    • Investment Management
    • Alternative Investments
    • Business Development
    • Compliance Policies and Procedures
    • Hedge Fund Services
    • Risk Management
    • Markets and Securities
    • Empowering Investors
    • Securities Litigation
  • Blog
  • RESEARCH
  • People
  • Contact