Computer Science & Electrical
Received: 23 Mar 2018 , Published: 23 April 2018
Views: 89 , Download: 88
|1||DR.COLLINS ODUOR ONDIEK|
|2||MAURINE AWUOR ONYANGO|
Available statistics from across the world designate that banking sector has suffered the highest fraudulent payment incidents and firms losses no less than 5% of its yearly returns to fraud. This translates to approximately Kshs 13 Billion of the Kenyan’s consolidated commercial banks returns in 2016. There is also evidence that fraudulent payment rate is increasing in Africa as a whole and Kenya being on the top in Africa. Commercial banks in Kenya continued to adopt variety of technology, including online banking during the last ten years. It has however not been established whether the rise in fraudulent payments are as a result of online banking associated risks like operational risks, legal risks, and security risks. The study was set to find if online banking associated risks are related to fraudulent payments among within this sector. Study objectives were to: determine the effect of operational risks; establish the effect of security risks; and to establish the effect of legal risks on fraudulent payments. The study targeted 43 commercial banks licensed by Central Bank of Kenya from which 30 banks were sampled. Regression analysis was used to test the hypothesis that; no significant correlation between emerging risks in online banking and fraudulent payments in commercial banks in Kenya. It revealed a positive and significant effect of emerging online banking on fraudulent payment among commercial banks in Kenya. The management of commercial banks are therefore provided with essential insights on the overall effect of emerging risks associated with online banking which presents a challenge to the regulatory authorities as to where their energies ought to be put in preventing banking fraud in the sector.
ACFE. (2010). Report to the Nations on Occupational Fraud and Abuse,Global Fraud Survey.
Albrecht, C., Turnbull, C., Zhang, Y., & Skousen, C. J. (2010). The relationship between South Korean Chaebols and fraud. Management Research Review, 33 (3), . 257-268.
Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2009). Fraud Examination. Natorp Boulevard, USA: Southwestern Cengage Learning.
Albrecht, W., C.C. Albrecht., C.O. Albrecht., & M.F. Zimbelman. (2009). Fraud Examination. South-Wester Cengage Learning, Mason, Ohio.
Association of Certified Fraud Examiners. (2016). Report to the Nations on Occupational Fraud and Abuse, 2012 Global Fraud Survey.
Barau, A. ,. (2015). Cyber Insecurity as a Manifestation of New Form of Global Urban Vulnerability. at: https://www.researchgate.net/publication/283796419.
CBK. (2011). Central Bank of Kenya, Quarterly report on Development in theKenyan banking Sector for the period ended 30th June 2016. retrieved on 8th August 2016 www.centrabank.go.ke/downloads.
CBK. (2016). Central Bank of Kenya, Quarterly report on Development in the Kenyan banking Sector for the period ended 30th June 2016. Retrieved on 8th August 2017 from http:www.centrabank.go.ke-downloads.
Central Bank of Kenya. (2010). Bank Supervision report; Kenyan banking Sector for the period ended December 2010. Retrieved on 8th August 2011 www.centrabank.go.ke/downloads.
Chimi, C., & Russel, D. L. (2009). "The Likert Scale. A proposal for Improvement Using Quasi- Continous Variables”, Proc INSECON, 26, . pp. 1 -10.
Cooper, D., & Schindler, P. (2003). Business Research Methods. (8th ed.). Boston: 15 McGraw-Hill Irwin.
Creswell, J. W. (2013). Qualitative inquiry and research design: Choosing among five approaches. Sage.
Government of Kenya. (2011). Kenya National Bureau of Statistics. Economic Survey 2011. Nairobi. Government Printer.
Hulme, G. V. (2011). SCADA Insecurity-Stuxnet put the Spotlight on Critical Infrastructure Protection but Will Efforts to Improve it come too late? . Information Security Magazine, 13(1),, 38-44.
Hussein, N., Khalid, A., & Khanfar, K. (2016). A Survey of Cryptography Cloud Storage Techniques. . Int. Journal of Computer Science & Mobile Computing, 5 (2), , 186-191.
Idowu, A. (2010). An Assessment of Fraud and its Management in Nigeria Commercial banks. European Journal of Social Sciences, 10 (4), . 23 – 34.
Kiragu, D. N., Wanjau, K. L., Gekara, M., & Kanali, C. ,. (2013). Effects of bank growth on banking fraud risks in commercial banks in Kenya. . International Journal of Social Sciences and Entrepreneurship, 1 (3),, 469-480.
Mutua, F. (2011). Ksh.500m lost to Kenya bank fraud in just a month. National Health Care Anti- Fraud Association (http://www.nhcaa.org).
Ngalyuka, C. (2013). The relationship between ICT utilization and fraud losses in commercial banks in Kenya. Unpublished Project to University of Nairobi.
Nyawanga, J. O. (2015). Meeting the challenge of cyber threats in emerging electronic transaction technologies in in Kenyan banking sector . (Doctoral dissertation, University of Nairobi).
Okoro, E., & Kigho, P. (2013). The problems and prospects of E-transaction: The Nigerian Perspective. . Journal of Research in International Business and Management, 3(1) , 10-16.
PricewaterhouseCoopers. (2016). Spotlight on financial services 2011 Risk Survey www.pwc.com/ke/en/industries/banking.jhtml.
PwC. (2016). Spotlight on financial services 2011 Risk Survey www.pwc.com/ke/en/industries/banking.jhtml.
Rae, K., & Subramaniam, N. (2008). Quality of internal control procedures: Antecedents and moderating effect on organizational justice and employee fraud. . Managerial Auditing Journal, 23 (2), , 104-124.
S.P. Changalvaraya Naidu v. Jagannath. (1994). Reported from Supreme Court of India. Reserve Bank Of India vs Bhopal Singh Panchal .
Solanki, V. (2012). Risks in e-banking and their management. . International Journal of Marketing, Financial Services & Management Research, 1 (9),, 164 – 178.
Waithaka. (2016). Factors affecting cyber security in national government ministries in Kenya. Unpublished project submitted to University of Nairobi.
Wechuli, A. (2014). on Cyber Security Assessment Framework: Case of government Ministries in Kenya;. International Journal of Technology in Computer Science and Engineering, 1(3).
Wekundah, R. N. (2015). The effects of cyber-crime on e-commerce; a model for SMEs in Kenya. (Doctoral dissertation, University of Nairobi).
Zikmund, W., & Babin, B. (2010). Exploring marketing research. 10th Edition. USA:Thomson/South-Western.