Rural banks fraud: a story from Indonesia
ISSN: 1359-0790
Article publication date: 18 May 2020
Issue publication date: 25 October 2020
Abstract
Purpose
The purpose of this paper is to highlight the causes of fraud in rural banks in Indonesia and provide recommendations to reduce these financial crimes.
Design/methodology/approach
This paper is desk research using secondary data from research reports, journal articles, magazine articles and online news related to fraud cases in rural banks. The Fraud Diamond approach is applied to analyze the problems.
Findings
Financial and non-financial pressures, opportunities that are open because of weak oversight and governance, justification of fraud and the capability of perpetrators are the factors that cause bank fraud. Opportunity is the most significant contributor to fraud.
Originality/value
The novelty of this paper is that it discusses the causes of fraud in rural banks. Management and authority can learn from this case.
Keywords
Acknowledgements
This research was partially supported by STIE Bank BPD Jateng. Author also thank the Institut Pendapatan Daerah (Ipenda), which provided many inputs and suggestions in this research.
Citation
Hidajat, T. (2020), "Rural banks fraud: a story from Indonesia", Journal of Financial Crime, Vol. 27 No. 3, pp. 933-943. https://doi.org/10.1108/JFC-01-2020-0010
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited