Effectiveness of Fraud Prevention and Detection Techniques in Malaysian Islamic Banks

Rahman, Rashidah Abdul; Anwar, Irda Syahira Khair

doi:10.1016/j.sbspro.2014.06.015

Cited by 56 publications

(52 citation statements)

References 2 publications

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“…The data mining technique helps to detect such symptoms that lead to fraud and to analyze processes. Rahman and Anwar (2014) aim to present the perceptions of Islamic banking employees in Malaysia on the effectiveness of fraud prevention and detection techniques. In this study, a survey method a quantitative research technique was used.…”

Section: Literature Reviewmentioning

confidence: 99%

Central Audit Activities as a Continuous Audit Approach in the Turkish Banking Sector: A Case Study About Frauds in Savings Accounts

Kaban

2020

Öneri Dergisi

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Developments in information technology constitute the core of a fundamental transformation of internal audit approaches. The traditional concept of internal audit on periodic and traditional auditing with the inclusion of concepts such as data mining, artificial intelligence, and machine learning is replaced by modern continuous, risk-focused auditing. Recently, in sectors that have high transaction volume such as banking, continuous audit activities combined with data mining applications have become prominent in effectively managing fraud risk. In this study, an example of the examination process related to savings account fraud in Turkey has been presented by providing basic information about the central audit activities applied as a continuous audit approach in the banking sector. The banking transactions used as data in this fraud auditing were generated realistically and at random. Data mining techniques have been applied to these transactions to detect fraud risks.

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Section: Literature Reviewmentioning

confidence: 99%

Central Audit Activities as a Continuous Audit Approach in the Turkish Banking Sector: A Case Study About Frauds in Savings Accounts

Kaban

2020

Öneri Dergisi

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“…In reference [1] the FIF neural network models, which is based on APCIII (Adaptive Pattern Classifier) clustering algorithm, the return algorithm of the least squares is represented for prevention of money laundering. APC III (Adaptive Pattern Classifier) clustering algorithm is used to assign the parameters of radial function in hidden layer and the return algorithm of the least squares of RLs is used to update the communication weight between hidden layer and output layer.…”

Section: Related Workmentioning

confidence: 99%

“…In [1] the designed technique includes the population of all Islamic banks in Malaysia. The He respondents were asked to show their opinions on the level of effectiveness of each technique or strategy which was according to Likert Scale which was from "not very effective " to "very effective".…”

Section: Detecting the Cheating People In Malaysian Islamic Banksmentioning

confidence: 99%

Evaluation of Destructive e-Banking Users’ Loyalty by Applying RFM

Maryam¹,

Ali²

2019

AJARR

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World economy has encountered money laundering phenomenon and its destructive effects on economy of countries over the last decades. Money laundry detection is one of the fields in which data mining tools can be very helpful in detecting it. Nowadays, recognizing credible customers to present banking facilities to them is of high importance. On the other hand, by increasing cheating in banking, detecting the fraud customers is also important. In this study, the decision tree was being trained by providing a fuzzy decision tree and users’ behavioral vectors. The output of fuzzy tree can signify users’ risking behaviors. Some features of customers’ accounts need to be extracted in order to identify the people with high risks. For instance, the variance of money transaction and money transfer can be done. In another part of the study, RFM (Recency, Frequency, Monetary) features and MLP (Multi-Layer Perception) classifications were used to identify the loyal customers. The three-fold features of refreshment, frequency, and shopping amount was completely discussed for every customer, whereby the customers’ scores were established as well. This classification aimed to categorize the credible users of neural networks. The results of current research indicate that the represented techniques possess high precision values, in comparison with previous techniques.

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“…Some studies carried out by Nor, Wan, Fathi, & Puspitasari (2017) found that the case of fraud can be influenced by some factors like gender, age, position and religiosity. A solution to prevent the potency of fraud in Islamic banking is by doing review and improving internal control (Rahman and Anwar 2014). An indicator for internal control is corporate culture.…”

Section: Walisongo: Jurnal Penelitian Sosial Keagamaan 509mentioning

confidence: 99%

Maintaining Employees’ Morality to Improve Internal Control in the Sharia Microfinance Institution

Mukhibad

2017

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Problems of fraud committed by a company's internal party are hitherto still problematic to figure out, including in sharia microfinance institutions. This research examines the benefit of maintaining employees' morality for the improvement of internal control in sharia microfinance institution. The object of this research is Anda BMT (sharia microfinance institution in Indonesia). The research uses a qualitative method. The data were obtained by interviewing the managers and twenty employees, and also through field observations for four months. The result of this research shows that the management needs to improve the employees' morality as it is the key element to prevent fraud act. The efforts made to improve the employees' morality are like praying together, joining a program of Islamic study once a week, and targeting all employees to read the Quran at least One Day One Juz (ODOJ). Islamic religious activities should be applied to sharia financial institutions in order to improve the employees' morality and to diminish the act of fraud. It is because the employees who properly carry out Islamic religious activities may reduce the potency of fraud.

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Effectiveness of Fraud Prevention and Detection Techniques in Malaysian Islamic Banks

Cited by 56 publications

References 2 publications

Central Audit Activities as a Continuous Audit Approach in the Turkish Banking Sector: A Case Study About Frauds in Savings Accounts

Central Audit Activities as a Continuous Audit Approach in the Turkish Banking Sector: A Case Study About Frauds in Savings Accounts

Evaluation of Destructive e-Banking Users’ Loyalty by Applying RFM

Maintaining Employees’ Morality to Improve Internal Control in the Sharia Microfinance Institution

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