Challenge of mitigating bank frauds by judicious mix of technology: Experience of a developing country

Bhasin, Madan Lal

doi:10.14254/jems.2017.1-1.3

Cited by 10 publications

(15 citation statements)

References 5 publications

(8 reference statements)

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“…The findings also confirm some empirical studies that found capacity as a major cause of fraud in the financial sector (Baz et al , 2016b, 2016a; Reurink, 2016; Abdullahi and Mansor, 2018; Muhsin et al , 2018b; Sunardi and Amin, 2018). The finding that financial pressure and pressure from related parties can push one to commit fraud substantiates a number of previous studies (Bhasin, 2016; Omar et al , 2016; Maria and Gudono, 2017; Abdullahi and Mansor, 2018; Bonsu et al , 2018; Asmah et al , 2020). Similarly, the positive relationship between rationalisation and occurrence of bank fraud validates empirical literature (Omar et al , 2016; Maria and Gudono, 2017; Abdullahi and Mansor, 2018; Bonsu et al , 2018; Sunardi and Amin, 2018; Asmah et al , 2020).…”

Section: Presentation and Discussion Of Resultssupporting

confidence: 86%

“…Moreover, poor supervision and improper documentation process provide opportunity to misappropriate the assets, especially when it includes several people that cooperate to conduct those illegal malpractices (Zakaria et al , 2016). Similarly, limited separation of duties, false documentation and inadequate or non-existence of control system accounted for fraud in the Indian banking system (Bhasin, 2016).…”

Section: Theories and Hypothesismentioning

confidence: 99%

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Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory

Avortri

Agbanyo

2020

JFC

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Purpose Fraud has become one of the most challenging issues facing the financial sector of most countries globally. These fraudulent transactions have led to loss of huge sums of money to financial institutions, as well as to their depositors. The current crises in the financial sector of Ghana, especially among the Deposit Taking Institutions, has largely been attributed to connected lending and lending to affiliated party institutions which are fraudulent corporate governance issues. This study, therefore, aims to assess the determinants of fraud among management staffs in the banking sector of Ghana. Design/methodology/approach This study is anchored on the fraud diamond theory (FDT). Primary data was collected from 120 management staffs of the remaining 23 universal banks in Ghana. Estimation was done using structural equation modelling with maximum likelihood estimation technique. Findings Fraudulent activities in the banking sector of Ghana are driven by opportunities, pressure, rationalization and capacity to commit fraud, with capacity being the dominant factor. Practical implications The regulator should strictly enforce the structure of shareholding as directed in the corporative governance directive to prevent ownership of a bank in the name of one person or a family, which gives high capacity to the Chief Executive Officers to misuse funds. The offenders should also be punished. Finally, the regulator should improve their supervision. Originality/value This study places the FDT into the context of the current banking crises of Ghana. The study therefore goes a long way to guide the regulator and government to formulate and implement policies on shareholding structure of banks.

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Section: Presentation and Discussion Of Resultssupporting

confidence: 86%

Section: Theories and Hypothesismentioning

confidence: 99%

Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory

Avortri

Agbanyo

2020

JFC

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“…Pressures can take the form of individuals' condition that encourages unethical actions, namely stress (Piquero et al, 2005), social stress, network and social interaction within the society (Piquero et al, 2005 andBlock &Griffin, 2002). The findings of Bhasin (2016) confirmed that of Said et al (2017) that pressure is a major determinant of fraud. Contrarily, Sunardi & Amin (2018) indicates that pressure had negative effect on the occurrence of financial statement fraud among manufacturing companies listed on the Indonesia Stock Exchange.…”

Section: 1mentioning

confidence: 64%

“…Moreover, poor supervision and improper documentation process provide opportunity to misappropriate the assets, especially when it includes several people that cooperate to conduct those illegal malpractices (Zakaria et al, 2016). Similarly, limited separation of duties, false documentation and inadequate or non-existence of control system accounted for fraud in the Indian banking system (Bhasin, 2016). Based on these arguments, this study proposes the following second hypothesis:…”

Section: H1: Pressure Affects Financial Statement Fraudmentioning

confidence: 97%

Can Fraud Diamond Affect Fraud Financial Statement In Sharia Commercial Banks?

Akbar

Africano

Isrodinata

2021

JRAK

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This research aims to obtain empirical evidence of the effect of fraud diamond (pressure as proxied by financial stability, opportunity which is proxied by effective monitoring, rationalization which is proxied by total accruals, and proxied capability by change of directors) on financial statement fraud at Islamic Commercial Banks. The population in this study were banking companies that were on the list of Islamic Commercial Banks. Then the sample was taken using purposive sampling technique. The research used logistic regression because the dependent variable is a dummy variable. The results of this research indicate that the pressure variable has no effect on financial statement fraud. Opportunity variable has a negative effect on financial statement fraud. Then, the rationalization variable has a negative effect on financial statement fraud. And the capability variable has no effect on financial statement fraud. The results of this study are expected to be useful for companies, especially banking, as a material for consideration in preventing fraud on financial statements.

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“…At first sight, an underlying examination in these cases has uncovered the contribution of not just midlevel workers, but also the seniormost administration as was seen in the recent Syndicate Bank and Indian Bank cases. This raises genuine worry over the adequacy of corporate administration at the most astounding echelons of these banks [7]. Moreover, there has been a rising pattern of non-performing resources (or) assets (NPAs), particularly for the PSBs, in this way seriously affecting their profits.…”

mentioning

confidence: 99%

Significance of Fraud Analytics in Indian Banking Sectors

Jeyanthi¹,

Mansurali²,

Harish³

2020

jcr

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Banks are the motors that drive the tasks in the monetary sector, currency markets and development of an economy. With the quickly developing Banking sectors in India, cheating in banks is also increasing quickly, and fraudsters have begun utilizing spearheading strategies. The fraudsters could start from both internal (representatives) and external sources (customers, providers, temporary workers, and legal advisors). As frugal organizations participate in an extensive variety of exercises, frauds could conceivably influence numerous stakeholders, including the investors, the contributors, the borrowers, the staff and the account managing foundation itself. In the last three years, in India, public sector banks (PSBs) have lost several crores of rupees on account of various banking frauds. According to the RBI laws, the number of account management extortion cases has declined, however, the number of cases has increased in recent times. This paper will focus on different endeavored fake and fraud cases for both internal and external misrepresentation plots in the banking sector. This paper is aimed at explaining and adapting towards giving profitable learning, focuses on bank staff who handle day by day banking activities with a specific goal to help them in recognizing and anticipating the comparable event in case of fraud.

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Challenge of mitigating bank frauds by judicious mix of technology: Experience of a developing country

Cited by 10 publications

References 5 publications

Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory

Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory

Can Fraud Diamond Affect Fraud Financial Statement In Sharia Commercial Banks?

Significance of Fraud Analytics in Indian Banking Sectors

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