Detecting Channel Stuffing: An Unsupervised Learning Approach

ABSTRACT Channel stuffing has been a focal point for both management and regulators. Managing sales activities across countries and ensuring accurate recording of sales is challenging for management, especially in multinational corporations. This study develops a state-of-the-art channel stuffing detection framework from an internal perspective using statistical analysis alongside unsupervised outlier detection techniques. The primary goal of this framework is to identify unusual sales activities related to channel stuffing and ensure that sales activities are conducted per the company’s compliance policy. This framework provides management with a holistic and granular view of sales activities at the country and customer levels, indicates unusual trends and patterns of transactions, and underscores high-risk channel stuffing activities for further investigation. The framework also enhances the company’s monitoring procedures and produces tangible applications. Data Availability: Data are from private sources.

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Publication Details

Journal
Journal of Emerging Technologies in Accounting
Published
2026-07-01
DOI
https://doi.org/10.2308/jeta-2025-022
Primary Topic
Imbalanced Data Classification Techniques
Type
article
Field-Weighted Citation Impact
0.00
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article

Detecting Channel Stuffing: An Unsupervised Learning Approach

Miklos A. Vasarhelyi, Huijue Kelly Duan, Qing Huang
Journal of Emerging Technologies in Accounting
Imbalanced Data Classification Techniques
article

Detecting Channel Stuffing: An Unsupervised Learning Approach

Miklos A. Vasarhelyi, Huijue Kelly Duan, Qing Huang
article en

Abstract

ABSTRACT Channel stuffing has been a focal point for both management and regulators. Managing sales activities across countries and ensuring accurate recording of sales is challenging for management, especially in multinational corporations. This study develops a state-of-the-art channel stuffing detection framework from an internal perspective using statistical analysis alongside unsupervised outlier detection techniques. The primary goal of this framework is to identify unusual sales activities related to channel stuffing and ensure that sales activities are conducted per the company’s compliance policy. This framework provides management with a holistic and granular view of sales activities at the country and customer levels, indicates unusual trends and patterns of transactions, and underscores high-risk channel stuffing activities for further investigation. The framework also enhances the company’s monitoring procedures and produces tangible applications. Data Availability: Data are from private sources.

Journal of Emerging Technologies in Accounting
Rutgers, The State University of New Jersey (US), Marshall University (US)
Partnerships for the goals
Openalex Percentile: Top 5%
Imbalanced Data Classification Techniques
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