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Title: Fraud in the banking industry : a case study of Kenya
Author: Akelola, S.
Awarding Body: Nottingham Trent University
Current Institution: Nottingham Trent University
Date of Award: 2012
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Fraud has become a worldwide problem that is not set to abate in the near future. It is eroding the profitability of organisations with devastating effects on firm solvency. This research aims to contribute to the knowledge and understanding of fraud in Kenya’s financial institutions and focuses on the Kenyan banking industry, which includes forty three commercial banks of local, national, regional and international standing. The research conducted uses a theoretical framework based on the Fraud Triangle to analyse the incidence of fraud and the motivations of fraudsters. The research uses a sample of audit, fraud, security and other managers involved in fraud fighting from thirty banks across the industry to conduct a mixed qualitative and quantitative study based on a survey of sixty respondents and seventeen semi-structured interviews. The research found that fraud is considered to be a major problem within the Kenyan banking industry, although the relative size of frauds conducted was relatively small and unsophisticated. Fraud detection and prevention methods used in the industry were standard and no different from global standards. The fraud triangle worked effectively to predict the patterns of fraud described by respondents. However from this study it is argued that the Fraud Triangle is not as effective in explaining the collusive and predatory nature of the Kenyan bank fraudster. Internal and external factors involved in fraud in Kenya are also identified, including weak industry co-operation, inadequately trained police and prosecutors, ineffective justice systems, weak government regulatory frameworks, low or non-existent fraud budgets for detecting and preventing fraud, among others. International banks were ahead of local, national and regional banks in efforts to establish industry co-operation; availability of capital, human, technological and other resources; dedicated fraud departments and budgets. Unlike previous research and theories that have mainly focused on either the individual or environmental factors, this research suggests an integrated theoretical and conceptual approach to fraud.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available