Critical success factors for preventing E-banking fraud

E-Banking fraud is an issue being experienced globally and is continuing to prove costly to both banks and customers. Frauds in e-banking services occur as a result of various compromises in security ranging from weak authentication systems to insufficient internal controls. Lack of research in this area is problematic for practitioners so there is need to conduct research to help improve security and prevent stakeholders from losing confidence in the system. The purpose of this paper is to understand factors that could be critical in strengthening fraud prevention systems in electronic banking. The paper reviews relevant literatures to help identify potential critical success factors of frauds prevention in e-banking. Our findings show that beyond technology, there are other factors that need to be considered such as internal controls, customer education and staff education etc. These findings will help assist banks and regulators with information on specific areas that should be addressed to build on their existing fraud prevention systems

The Impact of Downsizing and Efficiency Measures on Anti-Fraud Resources

The main purpose of this study was to explore the impact of downsizing and efficiency measures on two key elements of operational performance - fraud detection and fraud reporting. Qualitative data were obtained from ethnographic observations of two major multinational insurance companies, which were already examined before the Global Financial Crisis, and subjected to an inter - and intra - business comparative analysis of anti - fraud resources. The paper points out a big discrepancy in opinions on the downsizing effects between junior staff and their supervisors. Whereas the latter present them as enabling the business to deal with suspicious claims more quickly, the former offer a contrastingly different view in which the constantly growing pressure often lea ds to suspicious claims getting approved. By validating the practical implications of a purposefully adapted version of resource - based theory, the paper illustrates the inviability of subjecting anti - fraud resources to the same levels of downsizing and efficiency as other business resources. Although the literature on the general negative impact of downsizing on the broadly - defined operational performance is growing, this is the first major study to examine its impact on insurance anti - fraud processes and illustrate their changes following the Global Financial Crisis

Internal Control in Perspective of Personal Bankers

This research aims to explain the dilemmas experienced by personal bankers while performing their duties in order to implement the Internal Control effectively. Personal bankers are charged high targets by corporate banks, so they must do various efforts to achieve these targets. However, Personal bankers’ effort to achieve the target should not violate the internal control procedures set forth in SOP (Standard Operating Procedure). Consequently, personal bankers sometimes face dilemmatic situation in which they have to achieve the target and follow SOP at the same time. Based on the author’s personal experience and observations as a personal banker in bank “X” on 2006 until 2011, there were dilemmas faced by the author. The author feels that SOP could not protect her job and policies which she took in order to fulfill priority customers’ satisfaction. In contrast, she should also be able to achieve the target charged by the bank and keep a good relationship with priority customers. Keywords: Internal control, SOP, Personal banker

Guide to investigating business fraud

https://egrove.olemiss.edu/aicpa_guides/1354/thumbnail.jp

Facilitating adoption of e-banking in Saudi Arabia through reduction of perceived risk in e-banking

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonA significant amount of work has been done over last one decade on identifying factors that influence adoption of e-banking among consumers. Despite a decade of research the same issues have been highlighted as influencing factors of adoption of e-banking and this is because the existing research has provided little practical guidance on how to address the issues highlighted in the researches in order to increase adoption of e-banking. This research aims to investigate one of the key factors identified as influencing factor of adoption of e-banking, perception of risk. This research looks at perception of risk in Saudi e-banking sector in detail, identifying the factors that affect the perception of risk and how to resolve this so as to reduce the perception of risk and increase adoption of e-banking. This research also considers the influence of cultural factors on perception of risk and adoption of e-banking. This research adopts a pragmatist philosophy and mixed method design in order to provide sufficient depth and understanding of the findings to be of practical use. Data was collected using questionnaire surveys and focus groups in two stages. Based on the findings of the questionnaire survey the conceptual framework was validated. Then focus group interviews were conducted to obtain more insight into the responses and findings of the research. One of the contributions of the focus groups was identification of solutions to the problems that related to perception of risk. This research finds security and financial risks are the key risks affecting perception of risk in Saudi e-banking sector. But in addition other risks such as transaction risk, time risk, and performance risks also influence perception of risk. In addition, this research finds that e-banking should be implemented considering the cultural dimensions in mind because cultural factors also have a significant influence on the perception of risk in Saudi e-banking sector. Based on the findings, this research proposes several solutions to reduce perception of risk in Saudi e-banking sector. The key recommendation is that e-banking channel should preserve some of the attributes of the brick and mortar channel which are valued high by Saudi customers such as one-to-one interaction

Fraud tolerance level as a predictor of insurance claims behavior: A South African Study

The insurance sector as a foundation which other sectors depend on is a critical cornerstone of a well-functioning society. An insurer’s strength exists in its ability to foresee, assess, price and mitigate current and emerging risks. Despite the value that insurance brings to maintaining and sustaining society there is large scale abuse of the various insurance products on offer. The abuse is predominately committed through the submitting of either false or inflated claims which negatively impacts the entire insurance value chain from underwriting to claims processes. Insurance claims fraud is classified as opportunistic or organised. Opportunistic claims fraud consists of claims inflation or claims padding for a genuine loss while organised claims fraud involves the lodging a claim for a loss that did not occur and usually involves staging of incidents. Opportunistic fraud is the most common type of fraud experienced by insurers and presents the greatest challenge to the insurance industry. While there are challenges in accurately determining the true costs of insurance fraud; there is consensus that the costs are significant. In response to incidents of insurance fraud insurers have implemented various measures to curb fraud; these measures range from the establishment of insurance crime bureaus, creation of internal investigation teams and the employment of technology as early warning systems. These measures although useful have not been able to be very effective as insurance fraud still continues to rise. Studies indicate that consumer attitudes towards insurance fraud play an important role which must be considered when developing fraud prevention strategies. Tolerance has been identified as an important factor which influence consumer v attitudes towards insurance fraud. Previous studies found that factors such as high insurance premiums, excess payments, consumer relationship with insurers, consumer’s previous claims experience and societal acceptability of insurance fraud played a role in shaping a consumer’s tolerance level. This study was undertaken to explore the role that policyholder tolerance has on predicting claims behaviour in the South African insurance market. The study also aimed at identifying reasons which motivated policyholder’s to commit and deter them from committing insurance fraud. A further aim was to identify the common types of insurance fraud and to measure policyholders’ perceptions towards their primary insurer, the insurance industry, brokers and insurance assessors. The fraud triangle and the theory of planned behaviour were used as theories in support of this study. Primary data for this study was gather through an online self-administered questionnaire and the sample population consisted of policyholders within the shortterm insurance market. A total of 560 completed valid questionnaires were received and analysed. The study shows that respondents have low levels of tolerance for insurance fraud. Results indicated that financial pressure, greed, financial benefit and opportunity were reasons why policyholders’ committed insurance fraud in SA. Factors which deterred policyholders from committing insurance fraud included consumer integrity and honesty, fear of being caught and prosecuted and fairness and value for money. vi Respondents indicated that inflated claims were more prevalent than false claims and it was easier to submit an inflated claim than a false claim. Regarding perceptions the study shows that respondents have a more positive view of their own primary insurer than the insurance industry in general, brokers and insurance assessors. Lastly, the research identified five factors that significantly explain levels of short-term insurance fraud tolerance, namely 'Unfairness/injustice', “Have policyholders’ best interest at heart”, 'Industry relations', ‘Opportunity’ and 'Morality'. The findings of this study could be useful to insurers when developing consumer education and awareness programmes. There exists opportunities for future research regarding several aspects of insurance fraud which was not dealt with in this study

Fraud tolerance level as a predictor of insurance claims behavior: A South African Study

The insurance sector as a foundation which other sectors depend on is a critical cornerstone of a well-functioning society. An insurer’s strength exists in its ability to foresee, assess, price and mitigate current and emerging risks. Despite the value that insurance brings to maintaining and sustaining society there is large scale abuse of the various insurance products on offer. The abuse is predominately committed through the submitting of either false or inflated claims which negatively impacts the entire insurance value chain from underwriting to claims processes. Insurance claims fraud is classified as opportunistic or organised. Opportunistic claims fraud consists of claims inflation or claims padding for a genuine loss while organised claims fraud involves the lodging a claim for a loss that did not occur and usually involves staging of incidents. Opportunistic fraud is the most common type of fraud experienced by insurers and presents the greatest challenge to the insurance industry. While there are challenges in accurately determining the true costs of insurance fraud; there is consensus that the costs are significant. In response to incidents of insurance fraud insurers have implemented various measures to curb fraud; these measures range from the establishment of insurance crime bureaus, creation of internal investigation teams and the employment of technology as early warning systems. These measures although useful have not been able to be very effective as insurance fraud still continues to rise. Studies indicate that consumer attitudes towards insurance fraud play an important role which must be considered when developing fraud prevention strategies. Tolerance has been identified as an important factor which influence consumer v attitudes towards insurance fraud. Previous studies found that factors such as high insurance premiums, excess payments, consumer relationship with insurers, consumer’s previous claims experience and societal acceptability of insurance fraud played a role in shaping a consumer’s tolerance level. This study was undertaken to explore the role that policyholder tolerance has on predicting claims behaviour in the South African insurance market. The study also aimed at identifying reasons which motivated policyholder’s to commit and deter them from committing insurance fraud. A further aim was to identify the common types of insurance fraud and to measure policyholders’ perceptions towards their primary insurer, the insurance industry, brokers and insurance assessors. The fraud triangle and the theory of planned behaviour were used as theories in support of this study. Primary data for this study was gather through an online self-administered questionnaire and the sample population consisted of policyholders within the shortterm insurance market. A total of 560 completed valid questionnaires were received and analysed. The study shows that respondents have low levels of tolerance for insurance fraud. Results indicated that financial pressure, greed, financial benefit and opportunity were reasons why policyholders’ committed insurance fraud in SA. Factors which deterred policyholders from committing insurance fraud included consumer integrity and honesty, fear of being caught and prosecuted and fairness and value for money. vi Respondents indicated that inflated claims were more prevalent than false claims and it was easier to submit an inflated claim than a false claim. Regarding perceptions the study shows that respondents have a more positive view of their own primary insurer than the insurance industry in general, brokers and insurance assessors. Lastly, the research identified five factors that significantly explain levels of short-term insurance fraud tolerance, namely 'Unfairness/injustice', “Have policyholders’ best interest at heart”, 'Industry relations', ‘Opportunity’ and 'Morality'. The findings of this study could be useful to insurers when developing consumer education and awareness programmes. There exists opportunities for future research regarding several aspects of insurance fraud which was not dealt with in this study

Business Intelligence and Learning, Drivers of Quality and Competitive Performance

Purpose: As healthcare organizations expand the scope of their operations with an eye towards cost reductions, quality improvements, sustainability, increased stakeholder satisfaction and increased performance, they are increasingly investing significant resources into information systems in general and Business Intelligence Systems (BIS) in particular to provide the necessary operational and decision support information. This paper seeks to model the relationships between BIS, learning, quality organization and competitive performance, as well as measure the influence BIS has on end-user perceptions of quality and competitive performance from a learning point of view. Methods: Qualitative and quantitative methods including survey, interview, and case study instruments to measure the link between BIS, learning models of mental-model building and mental-model maintenance, quality organization, and competitive performance. Individual, organizational, system, information, and service characteristics are explored to measure the relationship between variables. Extending models from prior-literature, a proposed model is introduced to improve the explanatory power of the prior model, and extend theoretical, practical, and policy contributions within a healthcare setting. Results: Results demonstrate a significant relationship between learning, quality and competitive performance when utilizing BIS. Information and system quality characteristics also influence the level of learning. The model increases the explanatory power over the prior information support systems and learning models and adds important contributions to healthcare research and practice. Contribution: Technology improvements and cost reductions have allowed BIS to be extended to the entire set of organizational stakeholders to provide information for various forms of decision making. Despite these improvements, there is still a significant organizational investment and risk to implement and maintain BIS. Expectations and funding for BIS in healthcare a

Business Intelligence and Learning, Drivers of Quality and Competitive Performance

Purpose: As healthcare organizations expand the scope of their operations with an eye towards cost reductions, quality improvements, sustainability, increased stakeholder satisfaction and increased performance, they are increasingly investing significant resources into information systems in general and Business Intelligence Systems (BIS) in particular to provide the necessary operational and decision support information. This paper seeks to model the relationships between BIS, learning, quality organization and competitive performance, as well as measure the influence BIS has on end-user perceptions of quality and competitive performance from a learning point of view. Methods: Qualitative and quantitative methods including survey, interview, and case study instruments to measure the link between BIS, learning models of mental-model building and mental-model maintenance, quality organization, and competitive performance. Individual, organizational, system, information, and service characteristics are explored to measure the relationship between variables. Extending models from prior-literature, a proposed model is introduced to improve the explanatory power of the prior model, and extend theoretical, practical, and policy contributions within a healthcare setting. Results: Results demonstrate a significant relationship between learning, quality and competitive performance when utilizing BIS. Information and system quality characteristics also influence the level of learning. The model increases the explanatory power over the prior information support systems and learning models and adds important contributions to healthcare research and practice. Contribution: Technology improvements and cost reductions have allowed BIS to be extended to the entire set of organizational stakeholders to provide information for various forms of decision making. Despite these improvements, there is still a significant organizational investment and risk to implement and maintain BIS. Expectations and funding for BIS in healthcare a

Business Intelligence and Learning, Drivers of Quality and Competitive Performance

Purpose: As healthcare organizations expand the scope of their operations with an eye towards cost reductions, quality improvements, sustainability, increased stakeholder satisfaction and increased performance, they are increasingly investing significant resources into information systems in general and Business Intelligence Systems (BIS) in particular to provide the necessary operational and decision support information. This paper seeks to model the relationships between BIS, learning, quality organization and competitive performance, as well as measure the influence BIS has on end-user perceptions of quality and competitive performance from a learning point of view. Methods: Qualitative and quantitative methods including survey, interview, and case study instruments to measure the link between BIS, learning models of mental-model building and mental-model maintenance, quality organization, and competitive performance. Individual, organizational, system, information, and service characteristics are explored to measure the relationship between variables. Extending models from prior-literature, a proposed model is introduced to improve the explanatory power of the prior model, and extend theoretical, practical, and policy contributions within a healthcare setting. Results: Results demonstrate a significant relationship between learning, quality and competitive performance when utilizing BIS. Information and system quality characteristics also influence the level of learning. The model increases the explanatory power over the prior information support systems and learning models and adds important contributions to healthcare research and practice. Contribution: Technology improvements and cost reductions have allowed BIS to be extended to the entire set of organizational stakeholders to provide information for various forms of decision making. Despite these improvements, there is still a significant organizational investment and risk to implement and maintain BIS. Expectations and funding for BIS in healthcare a