Amoral behavior, control climate, job insecurity and fraudulent intentions among bank employees

Abstract

Purpose Combating and detecting fraud is a daunting task, especially in the Nigerian banking sector, because it necessitates a thorough understanding of the nature of fraud, as well as how it can be performed and concealed by fraudsters. Therefore, the purpose of this study is to empirically examine the relationship and the predictive ability between amoral behavior, control climate and perceived job insecurity on fraudulent intentions among bank employees in Lagos Metropolis. Design/methodology/approach Descriptive and cross-sectional designs were used to select employees from 12 banks using predetermined scales. In total, 1,080 questionnaires were distributed, but 950 were retrieved and analyzed. The study used multistage sampling by applying cluster, purposive and simple random sampling techniques. Correlation and hierarchical regression analyses were used to analyze the data. Findings A significant positive relationship and predictive abilities were established between employee’s amoral behavior and fraudulent intentions on the one hand, and employee’s job insecurity and fraudulent intention on the other, going by the additional variance identified when each variable was added in each step, implying that employees who exhibit amoral behavior are likely to engage in fraudulent intentions. In the same manner, employees who feel insecure are likely to engage in fraudulent acts because they would want to secure their future. However, there was a significant negative relationship and predictive ability between control climate and fraudulent intention; implying that inculcating a strict control climate minimizes or totally eradicates employees’ intentions to commit fraud. Research limitations/implications This paper is limited to amoral behavior, control climate, perceived job insecurity and fraudulent intentions; it is limited to employees in the banking sector, with a special focus on emerging economies, Nigeria, West Africa. The implication of this is that the result may not be generalized to other sectors and other countries. Practical implications The practical implication of the study is that managers should be aware that employees who are in danger of losing their jobs are more likely to engage in the fraudulent act, and this should be looked into. Training and retraining, workshops, conferences and seminars on employee morale behaviors as well as strict adherence to ethical codes of conduct are vital to enlighten the employees on the dangers of perpetrating fraud and the impact on themselves and the economy at large. Control climate is a very vital tool in curtailing the incidences of fraud in the organization. Originality/value This paper contributes to the knowledge by filling the gaps left by a lack of empirical examination into the combined influence of amoral behavior, control climate and perceived job insecurity on fraudulent intentions, especially among bankers in Lagos Metropolis. It provides management with guides on how to drastically reduce the menace of fraudulent intentions in the banking sector and by extension in other non-banking organizations.

The moderating role of workplace ostracism between employee training, employee participation and organizational commitment among bank employees

“…The target population consisted of all employees of the 23 banks in Lagos, Nigeria, that were listed on the Nigerian Stock Exchange and had survived the Central Bank of Nigeria's recapitalization policy in 2005. Nigeria was chosen because “it is the most populous black nation in the world” (Ametepe, Banwo, & Arilesere, 2022, ahead-of-print), and Lagos was chosen because it doubles as the former capital of Nigeria and is the commercial center of the country (Wahab, 2008). However, because bank employees in Nigeria have inter- and intra-employment mobility, the overall number of bank employees cannot be ascertained when compiling this study.…”

Fraud prevention in the Indonesian banking sector using anti-fraud strategy

“…Fraud and financial crimes in the banking services industry, such as money laundering, illegal debiting of customer accounts, internet banking fraud, and fictitious credit distribution, often involve bank front office employees (Ametepe et al, 2022;Dzomira, 2016;Mangala & Soni, 2023). This fraud occurs because there are opportunities and loopholes as a result of weak internal control processes, disorderly implementation of risk management, and constraints on the whistleblowing system (WBS) in banking organizations (Brune et al, 2021;Durguti et al, 2023;Hobby, 2020;Nobanee & Ellili, 2018;Yeoh, 2020).…”