Intelligent Prediction Mathematical Model of Industrial Financial Fraud Based on Data Mining

Source abstract

The essence of enterprise financial modeling is to use mathematical models to classify and sort out all kinds of enterprise information according to the main line of value creation and on this basis to complete the analysis, prediction, and value evaluation of enterprise financial situation. A reasonable financial model is also an effective means to reduce financial fraud. In this paper, a financial fraud identification model is constructed based on empirical data. In the process of model construction, the primary feature set is selected according to the financial fraud motivation theory, and then, the original feature set is obtained by Mann–Whitney test on the primary feature set, and the final fraud identification feature set is selected from the original feature set by using Relief and Boruta algorithms. Finally, based on the final fraud identification feature set, the data algorithms such as decision tree, logistic regression, support vector machine, and random forest are used to identify financial fraud. The experimental results show that the combination of financial fraud identification features constructed by the Relief algorithm and random forest model has the best recognition effect. The evaluation indexes of the G mean value and the F value were 75.86% and 78.33%, respectively.