Factors influencing the effectiveness of credit card fraud prevention in Indonesian issuing banks

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

Ascertaining the Relationship between Security Awareness and the Security Behavior of Individuals

Security threats caused by the inappropriate actions of the user continue to be a significant security problem within any organization. The purpose of this study was to continue the efforts of Katz by assessing the security behavior and practices of working professionals. Katz conducted a study that assessed whether the faculty and staff at Armstrong Atlantic State University had been performing the simple everyday practices and behavior necessary to avert insider threats to information security. Critical in understanding human behavior is in knowing how behavior varies across different groups or demographics. Because a user\u27s behavior can be influenced by demographic groups, this study adapted Katz\u27s study by examining the influence on the security behavior of four demographic groups identified by gender, age, education, and occupation. Like Katz, this study used a 5-point Likert scale quantitative self-administered, closed-ended questionnaire to assess the participants\u27 security practices and behaviors. The questionnaire was developed in two sections: Section 1 used a binary scale to gather the participants\u27 demographics data while Section 2 used a 5-point Likert scale to measure the participants\u27 security behaviors. The sample population was derived from working professionals at the General Dynamic and Program Manager Advanced Amphibious Assault (GD & PM AAA) Facility in Woodbridge, Virginia. The total population at PM AAA Office was 288, of which 87 or 30% completed the survey. Results of the demographic survey indicate that (a) women were more security aware than their male counterparts, (b) younger participants were more security aware than their older counterparts, (c) participants who did not attend college were more security aware than their college-educated counterparts, and (d) participants in nontechnical positions were more security aware than their counterparts in technical positions. The results indicate that a relation exists between the participants\u27 security behaviors and their levels of security awareness