Financial consumer protection: internet banking fraud awareness by the banking sector

Shewangu Dzomira

doi:10.21511/bbs.11(4-1).2016.03

Abstract

This paper examines internet banking fraud awareness by the banking sector in Southern Africa as financial consumers’ protection. The study is grounded on routine activity theory and criminology theory. A qualitative content analysis research technique was used for examination of the text content data through the consistent nomenclature process of coding and classifying themes or patterns to proffer a meticulous considerate of internet banking fraud awareness in the banking sector. The findings suggest that internet fraud awareness to the general public through website is very low by many Southern Africa banks. Most of the banks disclose less than half of the identified internet banking fraud awareness to the general public on their websites. Although some banks have internet fraud information on internet banking applications, however, the authentic efficacy of this information is tentative. This proposes that most of the financial customers engage internet banking transactions without sufficient awareness on potential internet threats and attacks. There is, consequently, high likelihood of financial consumers being internet banking fraud victims. Keywords: internet fraud, internet banking, fraud awareness, financial consumer. JEL Classification: G21, D18

Highlights

As financial customers become more urbane, it becomes critical for the banks to consider the use of technology and awareness efforts to take action to their incessantly changing needs
This study concludes that internet banking fraud awareness disclosure is very low by many Southern African banks, as it is reflected by the findings above
Most of the banks disclosed less than half of the cited internet banking fraud awareness on their websites

Summary

Introduction

As financial customers become more urbane, it becomes critical for the banks to consider the use of technology and awareness efforts to take action to their incessantly changing needs. The banks have to strengthen awareness programs to help customers to circumvent internet banking scams such as phishing, pharming, romance, and mobile scams such as smshing, sim-card swapping and vishing, that can lead to account usurping and other identity theft ways. The surfacing of internet gives tremendous opportunity for proficient services and increases competitiveness to meet financial consumer demands via the formation of improved banking transaction course that reduces overall banking costs. Concurring to that (Alsheyyab & Singh, 2013) noted that lack of confidence has inhibited the embracing of internet banking services, as financial customers information is exposed to internet-fraudsters.

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Results

Conclusion