Fraud prevention in the Indonesian banking sector using anti-fraud strategy

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Fraud and financial crimes involving banking employees have become serious and complex problems throughout the world, including Indonesia. This study aimed to analyze a fraud prevention through anti-fraud strategy and modified situational crime prevention theory. Data were obtained using a questionnaire distributed and interviewed to accounting officers, marketing departments, customer services, tellers, operational supervisors and risk management of banks in Indonesia. Respondent filled in 217 questionnaires completely. The data analysis technique used is a path analysis technique with the WarpPLS. The results show that anti-fraud strategies have a positive effect on fraud prevention. Banking in Indonesia has succeeded in implementing anti-fraud strategy through a whistleblowing policy, which focuses on efforts to protect whistleblowers and disclose potential fraud, compliance with the implementation of internal controls in activity units, and the proper functioning of risk management. The modified situational crime prevention theory also has a positive effect, and religiosity is a moderating variable. The results have also informed that banks have attempted to create conditions and awareness for perpetrators that the benefits of fraud are less and not commensurate with the high risks borne, and narrowing opportunities and providing strict sanctions to perpetrators can prevent fraud.

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    • Figure 1. Research model
    • Figure 2. Path analysis
    • Table 1. Validity and reliability test
    • Table 2. Second order confirmatory for the best reflect of indicators
    • Table 3. Model fit
    • Table 4. Hypothesis test result
    • Conceptualization
      Nanang Shonhadji, Soni Agus Irwandi
    • Formal Analysis
      Nanang Shonhadji
    • Funding acquisition
      Nanang Shonhadji, Soni Agus Irwandi
    • Investigation
      Nanang Shonhadji, Soni Agus Irwandi
    • Methodology
      Nanang Shonhadji, Soni Agus Irwandi
    • Resources
      Nanang Shonhadji, Soni Agus Irwandi
    • Software
      Nanang Shonhadji, Soni Agus Irwandi
    • Supervision
      Nanang Shonhadji
    • Validation
      Nanang Shonhadji, Soni Agus Irwandi
    • Visualization
      Nanang Shonhadji, Soni Agus Irwandi
    • Writing – original draft
      Nanang Shonhadji
    • Writing – review & editing
      Nanang Shonhadji, Soni Agus Irwandi
    • Data curation
      Soni Agus Irwandi
    • Project administration
      Soni Agus Irwandi