Bank Fraud Research Articles

Impact of technological advancements on banking frauds: A case study of Indian banks

Impact of technological advancements on banking frauds: A case study of Indian banks

Fraud And Financial Performance Of Banks In Nigeria

Incidence of fraud is a global problem affecting the society across all works of life and no person or organisation is immured. This study investigated fraud and financial performance in Nigerian banks for the period 2002 to 2016. Data analysed were sourced from Central Bank of Nigeria (CBN) statistical Bulletin and NDIC annual reports. The result identified the amount involved in fraud (0.3354) to have affected the banking sector performance. The study concluded that fraud is harmful and recommended that there is need for the establishment of adequate internal control system, capacity building and legal framework for fraud prevention.

Fraud and Anomaly Detection Models in Banks: a Systematic Analysis and Literature Connection

Fraud and Anomaly Detection Models in Banks: a Systematic Analysis and Literature Connection

Impact of Bank Frauds on Financial Performance of Select Banks

Impact of Bank Frauds on Financial Performance of Select Banks

How cybersecurity influences fraud prevention: An empirical study on Jordanian commercial banks

In this digital age, fraudulent practices are among the most challenging that organizations must be aware of due to the increasing use of online transactions. This also applies to the banking sector whose business has become more complex with the recent developments in information and communication technology, which has changed the nature of bank fraud requiring advanced prevention measures. From this perspective, this paper aims to determine how cybersecurity affects fraud prevention for Jordanian commercial banks. A five-dimensional NIST cybersecurity framework was used. The research data was collected from 173 information technology managers in commercial banks listed on the Amman Stock Exchange. Structural equation modeling (SEM) was applied to investigate research hypotheses. The results of the research demonstrated the significant impact of cybersecurity in fraud prevention, especially detect function which had the largest impact among the dimensions of cybersecurity. Therefore, a set of recommendations were formulated for policymakers in Jordanian commercial banks, the most important of which is the adoption of multi-factor authentication (MFA) approaches for customer accounts, employee access, and biometric systems that add an additional layer of protection and make access to sensitive information to unauthorized individuals more difficult.

Neuro-Fuzzy Models for Electronic Banking Fraud Detection and Prevention: A Review of Recent Advances

Online payments have evolved over the years. Today, more people are choosing electronic payments platforms over method traditional banking. From POS, mobile banking, to virtual banking services, there are lots of trends to facilitate seamless payments for customers. However, electronic fraud is affecting Nigeria’s financial system, costing the economy dearly and holding back the adoption of cashless technologies due to rise in fraudulent activities. This work focused on informing and helping the public to understand payment fraud issues occurring on various channels, as well as aid financial institutions with more effective fraud monitoring and preventive measures to combat the fraud. In this study, five feature of electronic banking transaction were selected and used to obtain universe of discourse, membership functions and their linguistic variables for the fuzzy system and are classified based on ANFIS to allow an E-banking fraud detection system to test and classify transactions as fraudulent or safe.

The Modeling of the Probable Behaviour of Insider Cyber Fraudsters in Banks

Insider cyber fraud in the banking sector is a serious and complex issue for financial institutions. This form of cyber fraud is particularly insidious due to insiders’ inherent access and knowledge, necessitating banks to implement comprehensive strategies for detecting, preventing, and responding to these internal threats. The aim of this study is to develop a scientific and methodological approach to model the probable behaviour of insider cyber fraudsters in banks based on a complex combination of principal component analysis, k-means clustering, and associative analysis. During the analysis of current challenges in the financial sector regarding the evolution of cyber fraud and its implications, the systematization of existing theoretical approaches concerning the examination of cyber fraud in banks was performed. Its result revealed a positive trend in the dynamics of the number of published materials in conferences and articles using keywords “cyber” and “frauds” in the Scopus database from 2000 to 2023. Additionally, utilizing the VOSviewer software facilitated the systematization of keyword combinations used in scholarly publications on the chosen topic, forming clusters to visualize and organize vectors of scientific research. Analytical data from Google Trends on critical issues related to cyber fraud were chosen as input data. Twenty variables were formed, which are the results of search queries, characterizing cyberattacks and decreased trust in financial institutions. The principal components method was used to reduce the dimensionality of the input data array, making it possible to select the nine most significant for the study. Conducting a cluster analysis using the k-means method made it possible to form 3 main groups of search queries, which included 12 of the selected variables. The results of the performed procedures contributed to the implementation of associative analysis for three sets of variables. It has been found that what intrigues potential insider cybercriminals in banks the most is the personal financial information of the client, access to the client’s profile in online banking and gaining access to his phone data. The obtained results can be utilized by commercial banks for identifying potential insider cyber fraudsters and ensuring a higher level of client protection against the actions of insider cyber fraudsters, by bank clients for analysing and mitigating potential threats from insider cyber fraudsters, and by law enforcement agencies for prompt responses to potential threats posed by insider cyber fraudsters in banks.

The urgency of digital literacy in social media to prevent fraud in Islamic banking

This study explores the use of social media to promote digital literacy and prevent Islamic banking fraud. The article argues that social media is a crucial space for people to access information and has an important role in disseminating information widely. These have not succeeded despite efforts to prevent Islamic banking fraud on social media. Reports from We Are Social, and the Ministry of Communication and Information (Kemenkominfo) indicate that the percentage of social media usage in Indonesia is high, and the number of fraud cases has also increased. To address this issue, social media can provide education and information on fraud prevention through various means, such as fraud material, forms or ways of fraud, and tips on avoiding fraud.
 Public interest statement
 Digital literacy has always been a significant problem. It has a significant role in overcoming problems in the era of Revolution 4.0. Meanwhile, social media has become the closest space for people to carry out their activities, including obtaining information. Therefore, digital literacy can be optimized on social media platforms to prevent current fraud, namely fraud with the type of social engineering in Islamic banking.
 Article history
 Received: 10/30/2023 | Revised: 12/11/2023 | Accepted: 12/30/2023 | Online First 12/31/2023

Analysis of cyberfraud in the South African banking industry: a multiple regression approach

PurposeThe purpose of this study is to analyse cyberfraud in the South African banking industry using a multiple regression approach and develop a predictive model for the estimation and prediction of financial losses due to cyberfraud.Design/methodology/approachTo mitigate the occurrence of cyberfraud, this study uses the multiple regression approach to correlate the relationship between financial loss and cyberfraud activities. The cyberfraud activities in South Africa are classified into three, namely, digital banking application, online and mobile banking fraud. Secondary data that captures the rate of cyberfraud occurrences within these three major categories with their resulting financial losses were used for the multiple regression analysis that was carried out in the Statistical Package for Social Science (SPSS, 2022 environment).FindingsThe results obtained indicate that the South African financial institutions still incur significant financial losses due to cyberfraud perpetration. The two main independent variables used to estimate the magnitude of financial loss in the South Africa’s banking industry are online (internet) banking fraud (X2) and mobile banking fraud (X3). Furthermore, a multiple regression model equation was developed for the prediction of financial loss as a function of the two independent variables (X2 and X3).Practical implicationsThis study adds to the literature on cyberfraud mitigation. The findings may promote the combat against cyberfraud in the South Africa’s financial institutions. It may also assist South Africa’s financial institutions to predict the financial loss that financial institutions can incur over time. It is recommended that South Africa’s financial institutions pay attention to these two key variables and mitigate any associated risks as they are crucial in determining their profitability.Originality/valueExisting literature indicated significant financial losses to cyberfraud perpetration without establishing any relationship between the magnitude of losses incurred and the prevalent forms of cyberfraud. Thus, the novelty of this study lies in the analysis of cyberfraud in the South African banking industry using a multiple regression approach to link financial losses to the perpetration of the prevalent forms of cyberfraud. It also develops a predictive model for the estimation and projection of financial losses.

Determination of Factors Influencing the Upsurge of Electronic Banking Frauds in Zimbabwe

Determination of Factors Influencing the Upsurge of Electronic Banking Frauds in Zimbabwe

The Effect Of The #AwasModus Campaign At @bankbca Tiktok On Community Financial Literacy


 In Indonesia, the increase in the level of financial inclusion and literacy in the community is not balanced. There is a considerable gap between the high level of financial inclusion and low financial literacy, which opens a gap of opportunity for bank fraud mode behavior to carry out its actions. The perpetrators of the fraud mode, on behalf of the bank irresponsibly. Bank BCA, which is also one of the banks that experienced this phenomenon, conducted a campaign that became one of the preventive measures to deliver educational messages to the public as a form of financial literacy. The purpose of this research is to find out whether there is an influence between the #AwasModus campaign message delivered by BCA on the level of public financial literacy. The concepts used in the study used the concepts of campaign messages and financial literacy. The method used is explanatory quantitative using a questionnaire survey to 201 respondents. And the results of this study indicate that the independent variable, namely the campaign message, has an influence on the dependent variable, namely financial literacy, by 33.1%. The conclusion of this study is that there is an influence between the #AwasModus campaign message on Tiktok @bankbca on people's financial literacy.
 
 
 

Fraud Detection using IBMs Differential Privacy Library

Abstract: In the year 2022, a total of 602 billion rupees were lost on bank frauds consisting of over 9103 major fraudulent cases. Due to the increasing number of frauds all around the world, it is vital to safeguard consumers' privacy. There is a prediction of a spike in cyber credit fraud in the future years. There are currently various techniques for credit card fraud detection but all the ML models have lower accuracies and cannot cope with the real-time datasets as the transaction data is extremely confidential. To address this issue we have used differential privacy for fraud detection. Differential privacy helps researchers to gain sensitive information about individuals without compromising their privacy. IBM provides a library: Diffprivlib, for exploring, researching and developing applications in Differential Privacy. In this paper, we have experimented with the impact of differential privacy on a sample dataset using various machine-learning models. With a comparative study of the algorithms, we propose that Isolation Forest has the highest accuracy. It can be added to the diffprivlib library since the library is open source and Isolation Forest does not exist in the library till date. Furthermore, we have built a system to predict fraudulent transactions.

Analysis of Internal Control, Good Corporate Governance and Reporting System Against Fraud

The aim of this research is that fraud is still rampant in Islamic banks, both internal and external, to obtain empirical evidence regarding the influence of internal control, good corporate governance and Violation reporting system on fraud in Islamic banks registered with the Financial Services Authority (OJK) for the 2020-2022 period. This research is quantitative in nature using secondary data in the form of annual reports of sharia banking companies for 2020-2022. The samples taken using purposive sampling were 14 companies. Data analysis uses multiple linear regression analysis with SPSS version 26 software. The research results show that the good corporate governance variable has an effect on fraud. However, the internal control variable has no effect on fraud and the Violation reporting system variable has no effect on fraud. Good corporate governance, internal control, and a violation reporting system simultaneously influence fraud. The results of this research have implications for sharia banking management to further strengthen the implementation of GCG to reduce the level of fraud in sharia banking.

Efficient Bank Fraud Detection with Machine Learning

Efficient Bank Fraud Detection with Machine Learning

SmishSMS- The Latest Detection of SMS Phishing Trends

Banking frauds is an emergency issue of concern in today’s busy schedule of the people around the world which has left many banking organizations bankrupt, and also has led many customers to a deadly torment. It is a cyber-security attack, where each day the fraudsters are inventing newer techniques which uses Short Message Service (SMS) to steal the credentials of mobile users. This paper has recklessly examined the e-banking frauds, the different methods for detection of e-banking frauds, control of banking frauds and the challenges associated with the detection and control of e-banking frauds. This paper focuses on Comparative analysis with different machine-learning techniques and the methods of the features extracted and classified. The paper also shows the further scope of study to boom the efficiency of the system.

Role of ICT Risk Management on Insider Fraud Prevention in Commercial Banks in Nairobi County

Purpose: The main objective of the research was to investigate the role of ICT risk management on reduction of insider frauds in the Kenyan banks in Nairobi County. The research explored ICT risks management practices incorporated in the banking industry to mitigate and control insider fraud.
 Methodology: Explorative research design and inferential statistics were used. The unit of analysis was the ICT risk management professionals in all the commercial banks in Nairobi County. 42 commercial banks formed the population of the study. The unit of observation were the ICT security, audit and risk professionals mandated with implementing ICT risk management. The targeted number was at least one respondent from each bank from the three departments identified: internal audit, Information technology, and security managers. In total, the study targeted 42 respondents and a total 29 responses were received which formed 69% of the targeted population. Responses from the distributed questionnaires were analyzed using statical packages for social science (SPSS). The open-ended questions were listed, analysed and reported by descriptive narrative with such statistics as mean and standard deviation. The ANOVA test was used to test the results.
 Findings: The findings revealed that there is a positive but insignificant correlation between ICT risk assessment, ICT awareness, Information security implementation and a significant positive correlation between information security audits and Insider fraud prevention. This study recommends that ICT risk assessment; ICT risk awareness; information security audits; and information security policy are important for preventing insider fraud in commercial banks, but there is need to implement them in conjunction with other stringent measure to increase efficiency
 Unique Contribution to Theory, Practice and Policy: The findings give a theoretical basis for validating the effectiveness of ICT risk management practices in Banks in Nairobi County, this can be adopted by other counties in Kenya. For policy implementation, the study will be important to the central bank of Kenya and any other institution that regulates the banking sector in Kenya in reviewing the current ICT Risk management guidelines. The study shows the adoption of the selected ICT risk management practices by different banks and gives a measure of their effectiveness that ICT Security professionals can use. The study gives the banking sector ICT security professionals a perspective on how ICT risk management can help them improve their ability to curb insider fraud. The study adds to the pool of knowledge for to scholars and academicians.

Impact of Banking Fraud Awareness Booklet Among The Students of Satara

With the growth of information and communication technology, the structure and nature of financial services delivery has also changed. Online banking or internet banking has emerged as a new and convenient way for using financial services like funds transfer, viewing account statement, bill payment, use of e-wallets etc. An upsurge in the use of devices connected with the internet and the convenience of online financial services has increased the risk of our hard-earned money being duped by cybercriminals.
 The main aim of this study is to assess the impact of Banking fraud awareness Booklet regarding online among students of Satara.
 The objectives of this study are to assess knowledge regarding awareness of online banking frauds among college going students, to determine the effectiveness of information booklet among college going students and also to find out association between socio-demographic variables and the booklet.
 The results show the significant increase in mean scores as (mean pre 16.92 SD=2.591 to mean post 18.32 SD=1.842). The paired 't' test applied showed the calculated paired t value (5.291 at 0.05 level of significance). The study reveals that there is association between, class, department & course of the subjects and level of knowledge regarding awareness on online banking frauds.
 The information booklet was effective in improving the knowledge of awareness regarding online banking frauds among the Undergraduate students.
 Keywords: Online banking frauds, Banking fraud awareness booklet.

Prevention of Fraud in the Banking Sector

The author uses the conducted research to formulate suggestions on preventing fraud in the banking sector. The goal of the study is to develop practical recommendations on improving the existing system of preventing fraud and enhancing its effectiveness. Within organizational and managerial measures, it is recommended to improve the inter-agency cooperation between law enforcement bodies and banks and other credit organizations; to carry out a thorough selection, training and adaptation of employees for the financial-credit supervision bodies, as the usefulness of a well-trained bank employee is difficult to overestimate. Special attention is paid to the necessity of counteracting “leaks” of bank clients’ personal data. As technical measures make it possible to solve most problems of counteracting bank fraud, the systems capable of adaptation to the new fraud schemes should be designed and improved. Within criminal law measures, it is suggested that special crimes of Art. 159.1 and 159.3 of the Criminal Code of the Russian Federation should be excluded from criminal law, and liability for them should be transferred to the general crime of fraud. To improve the protection level for victims of bank fraud, it is recommended to conduct preventive work with persons characterized by age and role victimity; to raise the level of digital, financial and technical literacy of potential and actual victims in order to prevent repeat victimity; to provide information about new ways of committing crimes. It is stressed that both physical and juridical persons could be victims of bank fraud, so the specific features of the victim should be considered in the development of prevention measures. It is pointed out that active work in these directions is, according to the author, an important step towards effective identification and prevention of fraud in the banking sector.

The Impact of Internal Control Measures on the Detection and Prevention of Fraud in Banks (A Case Study of Fifteen (15) Selected Deposit Money Banks in Nigeria)

This paper explores the impact of internal control measures on the detection and prevention of fraud in Banks. Primary data were used for this study. This study was carried out by collecting data from 15 quoted Deposit money banks in Nigeria as at March, 2022. The model of used for the study was least square regression. It was observed that strong internal control system, good corporate governance, and compliance with banking ethics have positive and significant influence on fraud prevention in banking industry. This indicates that a commitment in the implementation of the variables of this study will reduce fraud, errors and misappropriations in banking sector. The study recommended that banking institutions should establish and ensure effective and strict implementation of all these variables which is strong enough to prevent fraud, errors and misappropriations.

PENGARUH ISLAMIC CORPORATE GOVERNANCE TERHADAP KECURANGAN PADA PERBANKAN SYARIAH DI INDONESIA

This study aims to examine the influence of Islamic corporate governance on fraud in Islamic banks in Indonesia. The population of this study is all Islamic banking in Indonesia in 2016-2020. The sampling technique in this study uses a purposive sampling method with the criteria of the company publishing a complete compliance report on the website of each Islamic bank. 10 Islamic banks become the research sample. This research is quantitative research with a multiple linear regression analysis method. The results of this study indicate that Islamic corporate governance, proxied by the duties and responsibilities of the board of directors, affects fraud in Islamic banking in Indonesia, while the implementation of the duties and responsibilities of the Sharia Supervisory Board has no effect on fraud in Islamic banking in Indonesia. These results contribute valuable insights to the understanding of how Islamic corporate governance can serve as a potent tool in mitigating fraudulent activities within the Islamic banking industry. Moreover, the findings have implications for regulatory bodies and stakeholders aiming to enhance the effectiveness of Islamic banking regulations and governance frameworks, ultimately fortifying the integrity and trustworthiness of Islamic financial institutions.