Antecedents and consequences of staff-related fraud in the Ghanaian banking industry

Abstract

Purpose

The purpose of this paper is to investigate the antecedents and consequences of employee fraud, focusing on the banking industry in Ghana.

Design/methodology/approach

A major bank was selected for the case study analysis. The researchers used qualitative data analysis for the study. Content analysis of investigation reports and interviews of employees from different functional areas were used as the main data collection tools.

Findings

This study found that loans contracted by bank employees with huge repayment amounts put financial pressure on them to commit fraud. The study also found that inadequate controls in some areas of the bank can fuel the commission of fraud. In addition, aggrieved employees have a high propensity of committing fraud. Huge punitive consequences were noted to exist for employees who perpetrate fraud, and shareholders are also affected by the fraudulent behaviour of employees.

Research limitations/implications

Findings shown in the study confirm the hypotheses of the fraud triangle theory on the causes of fraud despite its criticisms. The findings are also consistent with extant studies on the antecedents and consequences of fraud. The use of one bank for the case study analysis as well as the three-year analysis period impose a limitation on the study. Future studies can explore fraud using other different theoretical lenses. Gathering data from more than one bank and for a longer period of analysis may provide more accurate results.

Practical implications

This study provides some recommendations for fraud prevention in the banking industry in Ghana. The major one is the need for the central bank to collaborate with financial institutions to set up an effective creditworthiness system that will aid the monitoring of activities of the banks. Banks should also ensure that systems of controls are reviewed regularly to identify and deal with fraud.

Originality/value

This study is original, as it focuses on an industry that is highly susceptible to fraud due to issues of confidentiality with data and with scanty literature on fraud.

Citation

Asmah, A.E., Atuilik, W.A. and Ofori, D. (2019), "Antecedents and consequences of staff-related fraud in the Ghanaian banking industry", Journal of Financial Crime, Vol. 26 No. 3, pp. 669-682. https://doi.org/10.1108/JFC-08-2018-0083