lately started to find interest in the stock market and working in an anti fraud solutions company, i thought of aome ways to find fraud on the market.
first step would be to define a most-fake identity of investor/trader. this most-fake investor would be too goot to be true. in any of the following cases, a too-good-to-be-true trader can be identified using repeating patterns, and mitigated:
1. inside trading – criminal trading based on knowledge from inside the company.
2. runner up – a legitimate investor asks their broker for a certain trade and the broker criminally executes the trade themselves before the customers order.
3. pumping – criminally inflating certain stocks to make them seem a good investment – and exiting position when the legitimate market reaponds.
these are just some examples of the possible criminal activity that can be found in stock exhange fraud, and we can find patterns and develop models that can identify them in near-real-time