Briefs

As the Credit Crunch continues to affect the worldwide markets the need for efficient methods to combat financial fraud has become more important than ever. Now researchers at the University of Sunderland are working on a smart computer that they believe will be able to detect insider trading fraud within the stock exchange almost instantly.

CASSANDRA (Computerised Analysis of Stocks and Shares for Novelty Detection of Radical Activities) aims to create a prototype software tool to tackle financial fraud. The project has been awarded £90,000 by Northstar Funding to investigate the feasibility of combining Artificial Intelligence technologies with headline analysis techniques to track suspicious share dealing.

The Financial Times recently quoted as many as 25% of UK share dealing may be tainted by insider trading. A study commissioned by the New York Times suggested as many as 41% of North American deals may be similarly affected.

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