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Article
Publication date: 8 May 2018

Abdoulaye N’Guilla Sow, Rohaida Basiruddin, Jihad Mohammad and Siti Zaleha Abdul Rasid

In Malaysia, as in most of the developing countries, small businesses play pivotal roles in the economy. Yet, despite the contribution of small businesses, previous…

Abstract

Purpose

In Malaysia, as in most of the developing countries, small businesses play pivotal roles in the economy. Yet, despite the contribution of small businesses, previous researchers have overlooked the fraud issues that are threating the sustainability of those businesses and instead focus mainly on large and public listed companies. Therefore, the purpose of this study is to identify how small businesses can prevent fraudulent activities.

Design/methodology/approach

This study used self-administer questioners and distributed 126 questionnaires to general managers, financial managers and supervisors in Malaysian small and medium enterprises (SMEs). Multiple regression was used to test the theoretical model.

Findings

The output of multiple regressions showed that culture of honesty and high integrity, anti-fraud processes and controls and appropriate oversight functions has a positive and significant effective on fraud prevention mechanisms.

Practical implications

Overall, this study suggests effective fraud prevention measures to mitigate the fraud risk surrounding Malaysian SMEs and other SMEs in emerging countries.

Originality/value

There has been a dearth of empirical studies on the effect of culture of honesty, anti-fraud processes and appropriate oversight functions on effective fraud prevention in non-western context, and this study has fulfilled the need for this research.

Details

Journal of Financial Crime, vol. 25 no. 2
Type: Research Article
ISSN: 1359-0790

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Article
Publication date: 11 October 2011

Hendi Yogi Prabowo

The purpose of this paper, which is based on author's PhD study, is to analyze the trends in credit card fraud prevention in the USA, the UK, Australia and Indonesia…

Abstract

Purpose

The purpose of this paper, which is based on author's PhD study, is to analyze the trends in credit card fraud prevention in the USA, the UK, Australia and Indonesia, particularly over the period 2003‐2007, with special focus on the fraud prevention practices in the payments systems.

Design/methodology/approach

This study uses primary and secondary data particularly from the payments systems of the USA, the UK, Australia and Indonesia to conduct historical and benchmarking analyses to highlight the trends in credit card fraud prevention in the four countries.

Findings

The study establishes that a common approach in preventing credit card fraud is reducing offenders' opportunities to commit their offences, which often require significant amount of resources and thus sound strategy needs to be properly formulated and executed. Referring primarily to the practices in the USA, the UK, Australia and Indonesia, resources are mainly allocated to six key areas of fraud prevention: understanding of the real problems, fraud prevention policy, fraud awareness, technology‐based protection, identity management and legal deterrence. These are supported in principle by four main groups in a payments system: user, institution, network and government and industry.

Originality/value

The paper provides insights into the nature of credit card fraud, as well as a framework for designing a sound credit card fraud prevention strategy in a country's payments system.

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Article
Publication date: 22 June 2021

Nero Madi, Corina Joseph, Mariam Rahmat, Jennifer Tunga Janang and Normah Haji Omar

The purpose of this paper is to investigate the extent of fraud prevention disclosure on the Malaysian public universities’ websites.

Abstract

Purpose

The purpose of this paper is to investigate the extent of fraud prevention disclosure on the Malaysian public universities’ websites.

Design/methodology/approach

The level of fraud prevention information disclosure was examined using content analysis of all 20 public universities in Malaysia based on the university fraud prevention disclosure index (UFPDi) previously developed by the authors’ research team.

Findings

The disclosures of eight aspects of fraud prevention policies, responses, initiatives and mechanisms were not satisfactory. Possible reasons could be because of lack of awareness and appreciation on the institutional mechanisms and lack of formal pressure from the relevant authority.

Research limitations/implications

Data collection for analysis was conducted during a period of one month only due to rapid changes of the information on the websites.

Social implications

The low level of disclosure using UFPDi will prompt the Malaysian public universities to take proactive actions in promoting transparent and good governance among the university staff hence assisting the government in addressing the fraud problem that is plaguing the nation.

Originality/value

This paper is an extension to the authors’ previous work on UFPDi. It further explains and highlights the extent of fraud prevention disclosures among academic institutions who are receiving financial resources from the government.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Content available
Article
Publication date: 12 June 2020

Mohammad Husen Rifai and Agus Widodo Mardijuwono

The purpose of this research is to obtain empirical evidence about the impact of auditor’s integrity and organizational commitment to the prevention of fraud.

Abstract

Purpose

The purpose of this research is to obtain empirical evidence about the impact of auditor’s integrity and organizational commitment to the prevention of fraud.

Design/methodology/approach

This research was conducted using questionnaires distributed to all internal auditors who worked at East Java Representatives Office of Indonesia’s National Government Internal Auditor. One hundred and thirteen questionnaires were distributed, and fifty-seven questionnaires were received, and all have validity eligible to use in this research. The hypothesis of this research was tested using the partial least square analysis with WarpPLS version 6.0 software.

Findings

The result of this research found that auditor’s integrity and organizational commitment affect positively to fraud prevention.

Originality/value

Using government internal auditors, this study believed, brings a new insight into government internal auditor behavior.

Details

Asian Journal of Accounting Research, vol. 5 no. 2
Type: Research Article
ISSN: 2443-4175

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Article
Publication date: 6 July 2012

Hendi Yogi Prabowo

The purpose of this paper, which is based on author's PhD study, is to assess the efficacy of Indonesia's credit card fraud prevention from a strategic point of view…

Abstract

Purpose

The purpose of this paper, which is based on author's PhD study, is to assess the efficacy of Indonesia's credit card fraud prevention from a strategic point of view, using a model of payments fraud prevention practice developed by the author based on similar practices in the USA, the UK and Australia.

Design/methodology/approach

Primary and secondary data, particularly from the payments system of the USA, the UK, Australia and Indonesia were used. Such data were collected by means of literature reviews and in‐depth interviews with payments system professionals.

Findings

The author establishes that credit card fraud prevention practice in Indonesia is still at a lower level of robustness than those in the USA, the UK and Australia. Deficiencies in the credit card fraud prevention practice in Indonesia are indicated, inter alia, by a lack of reliable fraud data collection, management and distribution mechanisms as well as a lack of effective and efficient identity management practice. Deficiencies and weaknesses in the system should be identified and action taken to make it more consistent with credit card fraud prevention practices of other countries.

Originality/value

The paper sees credit card fraud prevention practice in Indonesia as a function of many factors which influence one another, based on which the analysis is built.

Details

Journal of Money Laundering Control, vol. 15 no. 3
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 3 October 2016

Cassandra Cross and Michael Kelly

The purpose of this paper is to examine the current prevention messages that exist surrounding the prevention of online fraud. In particular, it focuses on the amount and…

Abstract

Purpose

The purpose of this paper is to examine the current prevention messages that exist surrounding the prevention of online fraud. In particular, it focuses on the amount and level of detail that is promoted for each type of potential fraudulent approach.

Design/methodology/approach

Multiple data sources are used to establish the main premise of this paper. This includes the publication entitled The Little Black Book of Scams, qualitative data from victims who have experienced online fraud, and materials collected through a police investigation into online fraud.

Findings

Results of this analysis indicate that current prevention messages are characterised by a large degree of detail about the various ways that (online) fraud can be perpetrated. This is argued to be ineffective, based on the experiences of victims who were unable to apply their previous knowledge about fraud to their experiences. Additionally, the categorisation of fraudulent approaches is highlighted as unimportant to offenders, who are focused on obtaining money by whatever means (or approach) possible.

Practical implications

This paper provides the impetus to evaluate the effectiveness of current prevention messages. It points to a simplification of existing prevention messages to focus more importantly on the transfer of money and the protection of personal information.

Originality/value

This paper argues that current prevention messages are characterised by too much “white noise”, in that they focus on an overwhelming amount of detail. This is argued to obscure what should be a straightforward message which could have a greater impact than current messages.

Details

Journal of Financial Crime, vol. 23 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

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Article
Publication date: 8 February 2021

Ika Sari Wahyuni-TD, Hasnah Haron and Yudi Fernando

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

Abstract

Purpose

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

Design/methodology/approach

A theoretical model was developed based on stakeholder theory, and data were collected from Indonesian Zakat institutions through convenience sampling design. In total, 142 data sets were analysed using partial least squares-structural equation modelling statistical software.

Findings

The results showed that good governance and fraud prevention significantly impact the performance of Zakat institutions. Yet, there was no significant influence of the fairness principle of good governance on Zakat performance in either direct or indirect relationships with fraud prevention.

Practical implications

The results indicated that Zakat institutions as trusted agencies should pay more attention to fairness implementations to avoid fraud. Furthermore, fairness is an early signal that accountants can use to detect either fraudulent or mismanaged Zakat distribution.

Originality/value

This paper provides the empirical justification for a theoretical model of Zakat performance that was conceptualized using good governance principles and Sharīʿah forensic accounting principles.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 4
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 6 June 2016

Sawsan Saadi Halbouni, Nada Obeid and Abeer Garbou

This paper aims to investigate the role of corporate governance and information technology in fraud prevention and detection within the United Arab Emirates (UAE).

Abstract

Purpose

This paper aims to investigate the role of corporate governance and information technology in fraud prevention and detection within the United Arab Emirates (UAE).

Design/methodology/approach

This study uses a survey of financial accountants and internal and external auditors to assess their perceptions of the effectiveness of IT and corporate governance as measured in terms of the audit committee’s effectiveness, internal audit functions, external audit functions, culture of honesty and employee training programmes in preventing and detecting fraud in the UAE.

Findings

The results indicate that corporate governance has a moderate role in preventing and detecting fraud in the UAE and that IT has the same role as traditional fraud prevention and detection techniques. The results also show no significant difference between internal and external auditors in their use of technological and traditional techniques during the course of audits.

Research limitations/implications

The findings suggest that the senior management and boards of directors must better understand the importance of their oversight function. The finding that a culture of honesty has a low positive impact on fraud prevention and detection in the UAE indicates that chief executive officers and boards of directors must make more efforts to set the “tone at the top” to improve the corporate environment in terms of integrity and ethics, among other factors. Furthermore, as IT and traditional techniques provide the same function, senior management and boards of directors must be alerted to the importance of developing systematic approaches to fraud investigation that involve greater reliance on technological approaches.

Practical implications

The moderate role of corporate governance suggests that senior management and boards of directors must better understand the importance of their oversight function to meet their obligations and fiduciary responsibilities to stakeholders. Furthermore, greater adoption of IT to detect and prevent fraud contributes to developing a systematic approach to fraud investigation, capable of identifying unusual activity using effective software.

Originality/value

This study contributes to the literature on the role of corporate governance and IT in preventing and detecting fraud, particularly for Middle Eastern countries and other emerging nations. The study may provide insights to academics and practitioners in the UAE and their international counterparts.

Details

Managerial Auditing Journal, vol. 31 no. 6/7
Type: Research Article
ISSN: 0268-6902

Keywords

Content available
Article
Publication date: 27 July 2020

Zaleha Othman, Mohd Fareez Fahmy Nordin and Muhammad Sadiq

This study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.

Abstract

Purpose

This study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.

Design/methodology/approach

This study applies a qualitative research method, i.e. case study, to address the specific research objective.

Findings

The finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.

Practical implications

The findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.

Originality/value

Past studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.

Details

Journal of Asian Business and Economic Studies, vol. 27 no. 3
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 30 July 2019

Tim Prenzler

The purpose of this paper is to report on a search of criminology and related databases to identify fraud prevention intervention projects that showed promising…

Abstract

Purpose

The purpose of this paper is to report on a search of criminology and related databases to identify fraud prevention intervention projects that showed promising achievements in reducing offences.

Design/methodology/approach

A keyword search of Criminal Justice Abstracts was supplemented by searches of related databases and case study repositories – conducted up to 31 May 2019. The paper includes some attention to indicators of “what doesn’t work” as well as “what might work” or “what should work”. Selection criteria were open about evidence, rather than exclusively applying strict scientific standards.

Findings

Overall, the literature is marked by inferences regarding what should work, based on diagnostics about opportunity factors in fraud and victim characteristics. In terms of evaluated intervention projects, only two were identified that met best practice scientific standards. However, a further 17 projects were included where there was some evidence of a likely benefit.

Research limitations/implications

Available evaluations of intervention projects are predominantly within-in group studies. Pre- and post-intervention time frames are often short, limited to one year or less; with only one follow-up study.

Practical implications

The findings demonstrate the need for applied experiments to build knowledge about effective fraud reduction strategies. The main lesson from the content of the 19 projects concerns the value of a situational crime prevention framework for designing and testing interventions, especially through enhancing rule setting, reducing anonymity, extending guardianship and formal surveillance, and facilitating compliance.

Originality/value

This appears to be the first systematic literature review of applied counter-fraud intervention projects.

Details

Journal of Criminological Research, Policy and Practice, vol. 6 no. 1
Type: Research Article
ISSN: 2056-3841

Keywords

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