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Article
Publication date: 8 February 2021

Mehak Younus

This study aims to investigate the involvement of employees in frauds and forgeries in banking industry of Pakistan and precautions taken against it. This research explored the…

Abstract

Purpose

This study aims to investigate the involvement of employees in frauds and forgeries in banking industry of Pakistan and precautions taken against it. This research explored the types of frauds prevailing in Pakistan’s banking industry, and the causes of employee involvement in frauds.

Design/methodology/approach

In-depth interviews with the officers working in fraud/compliance/risk department at commercial banks as well as the officials working in the inspection and policymaking departments at the State Bank of Pakistan (SBP) were conducted. Research questions were developed under the guidance of experts working in the banking industry, so the research possesses internal validity. Data was analyzed using thematic analysis.

Findings

This study revealed that the SBP has devised many policies and guidelines for commercial banks against fraud management, but these are not properly implemented. These policies also include precautionary measures, which are recommended by the SBP to lessen fraud. Besides this, banks are also taking initiatives of their own to control the rising trend of frauds and forgeries. At the end, brief conclusion and effective recommendations are given to the practitioners, policymakers and management.

Originality/value

To the best of the author’s knowledge, this area of management has not been explored by researchers in Pakistan; hence, this research provides valuable information to bank managers, risk management departments, risk avoidance policymakers, bank shareholders, depositors, borrowers and government agencies. This study provides deep insights into the prevalence of frauds in the banking industry of Pakistan.

Details

Qualitative Research in Financial Markets, vol. 13 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 4 October 2021

Oludayo Tade

This paper aims to examine the nature of frauds and insider involvement in the perpetration of frauds in Nigeria’s banking ecosystem. It probes the payment platforms mostly…

Abstract

Purpose

This paper aims to examine the nature of frauds and insider involvement in the perpetration of frauds in Nigeria’s banking ecosystem. It probes the payment platforms mostly vulnerable to fraud attacks since the role-out of cashless policy in Nigeria in 2014.

Design/methodology/approach

Using secondary data on frauds and forgeries in Nigeria Deposit Insurance Corporation annual report of 2019, the study engaged the data on frauds and forgeries to unpack the complex dynamics in relation to bank frauds in Nigeria.

Findings

Findings show that fraud attacks on deposit money banks increased year in year out although the actual monetary loss dropped in 2019 as against 2018. Technology mediated transactions such as the use of automated teller machine and internet-based transactions experienced the most fraud. In relation to the role of insiders, all cadres of staff were involved in the fraud but majority of those involved were temporary staff.

Practical implications

Arising from this, it is suggested that banks should continue to strengthen security system and governance structures. Employing temporary staff should be phased out while online and offline vigilance should be mounted.

Originality/value

The study contributes to knowledge by examining the nature of frauds and unveiling the insider dimensions of fraud and the possible factors increasing the vulnerability of casual staff to perpetrate fraud.

Details

Journal of Financial Crime, vol. 29 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 January 2001

Chibuike Ugochukwu Uche

In recent years, the volume and frequency of fraudulent practices in Nigerian banks have been on the increase. According to the Nigeria Deposit Insurance Corporation (NDIC), the…

Abstract

In recent years, the volume and frequency of fraudulent practices in Nigerian banks have been on the increase. According to the Nigeria Deposit Insurance Corporation (NDIC), the level of reported fraud in Nigerian banks rose from N804m in 1990 to N3,199m in 1998. Furthermore, the proportion of actual/expected loss to the amount involved in fraud rose from 3 per cent in 1990 to 22 per cent in 1998. Perhaps the highest fraud ever reported in any particular year by a Nigerian bank occurred in 1998 when United Bank for Africa plc wrote off N786m on account of fraud. The growing scope and scale of fraud in the Nigerian banking industry is not surprising, given the rising profile of the country as a corrupt and fraudulent nation. For instance, a recent survey by Transparency International, a German‐based international organisation that interviewed business people worldwide, listed Nigeria as the second most corrupt country in the world. The country also has a poor reputation concerning drug trafficking. It has, for instance, been asserted that:

Details

Journal of Financial Crime, vol. 8 no. 3
Type: Research Article
ISSN: 1359-0790

Article
Publication date: 20 January 2020

Habeeb Abdulrauf Salihu

The objective of this study is to investigate the effectiveness of the treasury single account (TSA) policy in curbing corruption in some selected federal ministries and agencies…

Abstract

Purpose

The objective of this study is to investigate the effectiveness of the treasury single account (TSA) policy in curbing corruption in some selected federal ministries and agencies in Nigeria.

Design/methodology/approach

The study used both primary and secondary sources of data and a cross-sectional survey research design. Purposive sampling was the technique adopted to select a total of 192 respondents. The questionnaire was the instrument used in data collection. The information gathered was analysed using Statistical Package for Social Sciences in generating simple percentage and correlation analysis.

Findings

The results indicate a relationship between the implementation of TSA policy and reduction in the level of unregulated cash flow and leakages as well as decline in pilfering, embezzlement, fraud and forgery among employees of the selected institutions. In addition, it was also found that the TSA policy does not have substantial impact on the level of bribery and inflation of contracts and procurement.

Practical implications

The study suggests that other anti-corruption policies should be strengthened to support the TSA policy in eradicating other hidden corruption crimes in the Nigerian public sectors.

Originality/value

This paper is one of the few academic investigations that empirically explored the effectiveness of the TSA policy in curbing corruption crimes in Nigeria.

Details

Journal of Money Laundering Control, vol. 23 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 5 January 2010

Norel Neagu

The purpose of this paper is to analyse the legislation and case law relevant to preventing and combating fraud affecting the European Union (EU)'s financial interests in Romania.

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Abstract

Purpose

The purpose of this paper is to analyse the legislation and case law relevant to preventing and combating fraud affecting the European Union (EU)'s financial interests in Romania.

Design/methodology/approach

The paper explores how the legislation is implemented in the process of Romania's accession to the EU, how it has been interpreted in case law, the reasons for the results achieved so far and the link between these specific offences and the general fraud offences provided for in the Criminal Code and other special laws.

Findings

The analysis examines the deficiencies in the legislation and in practical implementation thereof, focusing on the penalties and on recovery of funds.

Practical implications

The research highlights the need for practitioners clearly to distinguish between the common legislation applicable to fraud offences, on the one hand, and offences affecting the EU's financial interests, on the other, thus contributing to a fair trial.

Originality/value

The paper identifies the linkages between the common legislation applicable to fraud offences and offences affecting the EU's financial interests, which are still blurred even for Romanian legislators, especially in the field of Community revenue.

Details

Journal of Financial Crime, vol. 17 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 February 1998

Rocco R. Vanasco

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect…

27054

Abstract

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.

Details

Managerial Auditing Journal, vol. 13 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 March 1998

Ralph Henham

The aim of this article is to examine those philosophical and structural factors which have been responsible for shaping sentencing policy for economic crime in the UK and to…

Abstract

The aim of this article is to examine those philosophical and structural factors which have been responsible for shaping sentencing policy for economic crime in the UK and to analyse some key decisions of the Court of Appeal (Criminal Division) in this area.

Details

Journal of Financial Crime, vol. 6 no. 1
Type: Research Article
ISSN: 1359-0790

Article
Publication date: 24 July 2020

Alexander Ehimare Omankhanlen, Ediomi Abasi-Favor Tometi and Ese Urhie

Many studies have traced the collapse of most banks in the past to weak corporate governance. In response to this, the Central Bank of Nigeria established a Code of Corporate…

Abstract

Purpose

Many studies have traced the collapse of most banks in the past to weak corporate governance. In response to this, the Central Bank of Nigeria established a Code of Corporate Governance which was made mandatory for all banks in Nigeria since 2003. Fifteen years after this provision the amount of actual loss attributed to financial malpractices in banks is still substantial. Available statistics show that the number of fraud cases has been on the increase in recent times.

Design/methodology/approach

This study examined the extent to which corporate governance has mitigated or moderated the effect of two macroeconomic factors – unemployment and inflation – on fraud in Nigerian banks. An interactive model was specified and estimated with PROCESS – a computational tool developed by Andrew Hayes.

Findings

The result revealed that while the structure of corporate governance by banks in Nigeria moderates the effect of unemployment, the reverse is the case for inflation.

Practical implications

This goes to show that the motivation factor stipulated by the fraud triangle theory holds sway in Nigeria.

Originality/value

It is recommended that efforts to bring a lasting solution to the challenge of financial malpractices in Nigerian banks must adopt a holistic approach.

Details

Journal of Money Laundering Control, vol. 24 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 July 1968

Harry C. Bauer

WHATEVER MAN PERPETRATES, the printing press indelibly perpetuates. The salting of bibliographic borrow pits with glittery falsehoods is therefore a reprehensible imposition on…

Abstract

WHATEVER MAN PERPETRATES, the printing press indelibly perpetuates. The salting of bibliographic borrow pits with glittery falsehoods is therefore a reprehensible imposition on posterity. When hoax, forgery, mischief, and fraud are buried in tomes, they enjoy an immortality seldom accorded truth. Tricks may, perhaps, be more illustrious and diverting than truth; they certainly are more difficult to crush to earth. They have one salutary utility, however. They can be used to test the credibility of books and reference sets.

Details

Library Review, vol. 21 no. 7
Type: Research Article
ISSN: 0024-2535

Book part
Publication date: 10 February 2020

Feride Hayirsever Bas¸türk

Insurance frauds deeply affect insurance companies, policyholders, and the insurance industry as a whole. The cost of fraudulent damage affects the profitability of companies, and

Abstract

Insurance frauds deeply affect insurance companies, policyholders, and the insurance industry as a whole. The cost of fraudulent damage affects the profitability of companies, and has negative effects on the society in terms of moral values. Increases in insurance costs can lead to increases in the premiums paid by policyholders, each family, and, ultimately, all of the insured. Recently, new legal regulations related to this issue have been performed in Turkey and higher institutions have been created. A regulation issued by the Under-secretariat of the Treasury, on June 1, 2011, defines insurance fraud as aggravated fraud. Insurance fraud in Turkey usually takes the form of intentional misrepresentations of facts to the insurance company to get the company to pay for something not actually covered by the policy. Studies examined the insurance industry in terms of the concept of financial crime, and inclusion of the concept of financial crime in insurance regulations was proposed since financial crimes have an important place in the current problems of the industry. In addition, it is seen that insurance frauds have changed over time as a result of studies.

Details

Contemporary Issues in Audit Management and Forensic Accounting
Type: Book
ISBN: 978-1-83867-636-0

Keywords

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