The increase in online credit card transactions in the digital era has caused an increase in credit card cyber incidents. This is happening globally, including in Indonesia. Thus, it will affect a ...bank’s reputation as well as its financial losses. Therefore, optimal fraud risk management is needed in a banking effort to prevent credit card fraud. In response, this article intended to study credit card fraud prevention by examining the relationship between digital security required for customer data security; fraud brainstorming to identify process weaknesses; and compliance management to manage regulatory compliance. The next step was to test whether the anti-fraud specialist is competent to moderate this relationship. This study used a quantitative approach. This study included 27 Indonesian card issuers. Primary sources were used to collect data for this study. The primary data were analyzed using a structural equation model (SEM). The results of the study show that digital security, fraud brainstorming, and compliance management were positively and significantly related to the prevention of credit card fraud, at a significance level of 5%, the t-statistic has a numerical value of 6.161, 5.079, and 5.98 each. Furthermore, testing the moderating effect obtained t-statistic values of 7.330, 4.161, and 7.694. Competency results obtained with positive and significant influence moderate the relationship between these factors and credit card fraud prevention. These findings have policy implications for banking and government objectives in fighting credit card fraud through implementing prevention strategies.
AcknowledgmentsThis research was conducted as part of the process of study completion at the Padjadjaran University, Bandung, Indonesia. We would like to express our sincere gratitude to the respondents who participated in this research.
The big data revolution happening in and around 21st century has found a resonance with banking firms, considering the valuable data they’ve been storing since many decades. This data has now ...unlocked secrets of money movements, helped prevent major disasters and thefts and understand consumer behaviour. Banks reap the most benefits from big data as they now can extract good information quickly and easily from their data and convert it into meaningful benefits for themselves and their customers.
Banks internationally are beginning to harness the power of data in order to derive utility across various spheres of their functioning, ranging from sentiment analysis, product cross selling, regulatory compliances management, reputational risk management, financial crime management and much more. Indian banks are catching up with their international counterparts; however a lot of scope remains.
This paper aims to capture how big data analytics is being successfully used in banking sector, with respect to following aspects:1.Spending pattern of customers2.Channel usages3.Customer Segmentation and Profiling4.Product Cross Selling based on the profiling to increase hit rate5.Sentiment and feedback analysis6.Security and fraud management
The data used is secondary data from a bank while the analysis is of primary nature. This study reveals some of the best practices being adopted by banks globally, and can be replicated by Indian banks to enhance their financial service offerings to customers.
This paper explores the different insider employee-led cyber frauds (IECF) based on the recent large-scale fraud events of prominent Indian banking institutions. Examining the different types of ...fraud and appropriate control measures will protect the banking industry from fraudsters. In this study, we identify and classify Cyber Fraud (CF), map the severity of the fraud on a scale of priority, test the mitigation effectiveness, and propose optimal mitigation measures. The identification and classification of CF losses were based on a literature review and focus group discussions with risk and vigilance officers and cyber cell experts. The CF was analyzed using secondary data. We predicted and prioritized CF based on machine learning-derived Random Forest (RF). An efficient fraud mitigation model was developed based on an offender-victim-centric approach. Mitigation is advised both before and after fraud occurs. Through the findings of this research, banks and fraud investigators can prevent CF by detecting it quickly and controlling it on time. This study proposes a structured, sustainable CF mitigation plan that protects banks, employees, regulators, customers, and the economy, thus saving time, resources, and money. Further, these mitigation measures will improve the reputation of the Indian banking industry and ensure its survival.
Purpose
The purpose of this paper is to study the relationship between internal audit organisational status, competencies, activities and fraud management. As a corollary, this paper examines the ...contribution made by the internal audit organisational status, the internal audit competence and the internal audit activities on fraud management in financial services firms.
Design/methodology/approach
This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 54 financial services firms in Kampala – Uganda.
Findings
Results suggest that the internal audit organisational status and the internal audit competence are significant predictors of fraud management. Contrary to previous thinking, internal audit activities do not significantly predict fraud management. Therefore, once internal auditors have appropriate status and are competent in an organisation, they are likely to perform activities that enhance fraud management.
Research limitations/implications
This study focuses on financial services firms in Uganda, and it is possible that these results are only applicable to the financial services sector. More research is therefore needed to further understand the contribution of the internal audit constructs on fraud management in other sectors such as the public sector.
Practical implications
The results are important for internal audit policy development, for example, in terms of prescribing the competences and reporting lines for the internal auditors to enhance fraud management in the financial services sector.
Originality/value
As far as the authors are aware, no research has hitherto been undertaken that investigates the individual contribution of internal audit organisation status, competence and its activities as internal audit constructs on fraud management.
Orientation Fraud and corruption have become a major concern for the South African government. However, the government has made attempts (often futile) to fight the scourge of corruption. The South ...African Social Security Agency (SASSA) developed a framework aimed at minimising corruption; nevertheless, loopholes in its anticorruption efforts continue to be an encumbrance.Research purpose This research sought to evaluate the effectiveness of the Fraud Management and Compliance Department (FMCD) in terms of its role in the prevention, detection, investigation, reporting and resolution of fraud, theft, corruption and maladministration within the SASSA.Motivation for the study The study was based on public knowledge of the plethora of activities both by civilians and by the SASSA officials that are negatively affecting the SASSA’s achievement of its goals and objectives.Research design, approach and method The study adopted a qualitative research approach, including 10 participants with whom one-on-one interviews were conducted. Thematic analysis was used.Main findings The study mainly uncovered that the Special Investigation Unit, National Prosecuting Authority, South African Police Service and Public Service Commission each play a critical role in investigating corruption, fraud and maladministration within the SASSA, thus contributing to how future fraud situations are handled.Practical/managerial implications The article recommends the training and development of relevant authorities to enhance the effectiveness of the FMCD within the SASSA.Contribution/value-add This article contributes to the literature on proposed solutions in effectively diminishing corruption in a South African government entity.
Purpose
Identity fraud is a growing issue for online retail organisations. The literature on this issue is scattered, and none of the studies presents a holistic view of identity fraud management ...practices in the online retail context. Therefore, the purpose of this paper is to investigate the identity fraud management practices and present a comprehensive set of practices for e-tail sector.
Design/methodology/approach
A systematic literature review approach was adopted, and the articles were selected through pre-set inclusion criteria. The authors synthesised existing literature to investigate identity fraud management in e-tail sector.
Findings
The research finds that literature on practices for identity fraud management is scattered. The findings also reveal that firms assume identity fraud issues as a technological challenge, which is one of the major reasons for a gap in effective management of identity frauds. This research suggests e-tailers to deal this issue as a management challenge and counter strategies should be developed in technological, human and organisational aspects.
Research limitations/implications
This study is limited to the published sources of data. Studies, based on empirical data, will be helpful to support the argument of this study; additionally, future studies are recommended to include a wide number of databases.
Practical implications
This research will help e-tail organisations to understand the whole of identity fraud management and help them develop and implement a comprehensive set of practices at each stage, for effective management identity frauds.
Originality/value
This research makes unique contributions by synthesising existing literature at each stage of fraud management and encompasses social, organisational and technological aspects. It will also help academicians understanding a holistic view of available research and opens new lines for future research.
Among the different risks a manufacturing firm faces, one of the most devastating may be caused by internal fraud. Corporate Fraud Investigation Units receive dozens of reports about possible fraud ...allegations annually. While all allegations should be addressed, it is not possible to investigate all cases immediately due to resource limitations. However, fraud may cause serious production and financial losses at any stage in the supply chain. Thus, it is necessary to find a method to prioritize the fraud risk of cases for the purpose of allocating resources and to determine how quickly they must be addressed. The Analytic Hierarchy Process (AHP) stands out as the most widely used prioritization methodology due to its intuitive simplicity and mathematical rigor. This study combines current SCM risk frameworks with extant fraud investigation literature and best-practices to develop an AHP ratings model for the prioritization of alleged fraud reports in a corporate setting, more specifically in the context of a large metals and mining manufacturing company.
Fraud in motor insurance is assessed to incur annual losses in the range of 100 billion dollars. While much research exists in the fraud management field, majority only deals with partial problems ...and presupposes the independence of specific fraud management activities. Researches on components of fraud management system are rarely explicitly related to business performance improvements. These results in a common problem, which can be observed on the practitioners' side: only small amount of companies can objectively assess which of the many fraud management system components proposed by researchers and vendors will help to solve their problems in fraud management. The method proposed in this paper can be used as a strategic tool for improvement of fraud management process in motor insurance companies. The method is designed to be used for a selection of fraud management system components, and is based on business performance. The input for the method is a set of key performance indicators that an insurance companies wish to improve. The result is a set of activities, which should be improved, and a set of fraud management system components that should be used to improve these activities. The paper presents and explains the method and its components. The method components have been developed based on the data received from Slovenian motor insurance companies and method is evaluated in three case studies.
Fraud detection mechanisms support the successful identification of fraudulent system transactions performed through security flaws within deployed technology frameworks while maintaining optimal ...levels of service delivery and a minimal numbers of false alarms. Knowledge discovery techniques have been widely applied in fraud detection for data analysis and training of supervised learning algorithms to support the extraction of fraudulent account behaviour within static data sets. Escalating costs associated with fraud however have continued to drive the migration towards increasingly proactive methods of fraud detection, to support the real-time screening of transactional data and detection of ambiguous user behaviour prior to transaction completion. This shift in data processing from post to pre data storage significantly reduces the available time within which to evaluate newly arriving system requests and produce an accurate fraud decision, demanding increasingly robust and intelligent user profiling technologies to support advanced fraud detection. This paper provides a comprehensive survey of existing research into account signatures, an innovative account profiling technology which maintains a statistical representation of normal account usage for rapid recalculation in real-time. Fraud detection architectures, processing models and applications to date are critically examined and evaluated with respect to their proactive capabilities for detection of fraud within streaming financial data. Discussion is also presented on challenges which remain within the proactive profiling of account behaviour and future research directions within the signature domain.
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