Antecedents and consequences of staff-related fraud in the Ghanaian banking industry

Publication Date02 Jul 2019
AuthorAlexander Ekow Asmah,Williams Abayaawien Atuilik,Dominic Ofori
SubjectFinancial risk/company failure,Financial crime
Antecedents and consequences of
sta-related fraud in the Ghanaian
banking industry
Alexander Ekow Asmah,Williams Abayaawien Atuilik and
Dominic Ofori
Department of Business Administration,
Heritage Christian University College, Accra, Ghana
Purpose The purpose of this paperis to investigatethe antecedents and consequences of employee fraud,
focusingon thebanking industry in Ghana.
Design/methodology/approach A major bank was selected for the case study analysis. The
researchers used qualitative data analysis for the study. Content analysis of investigation reports and
interviews of employees from different functional areas were used as the main data collection tools.
Findings This study found that loans contracted by bank employees with huge repayment
amounts put nancial pressure on them to commit fraud. The study also found that inadequate
controls in some areas of the bank can fuel the commission of fraud. In addition, aggrieved employees
have a high propensity of committing fraud. Huge punitive consequences were noted to exist for
employees who perpetrate fraud, and shareholders are also affected by the fraudulent behaviour of
Research limitations/implications Findings shown in the studyconrm the hypotheses of the fraud
triangle theory on the causes of fraud despite its criticisms. The ndings are also consistent with extant
studies on the antecedentsand consequences of fraud. The use of one bank for the case study analysis as well
as the three-year analysis period impose a limitation on the study. Future studies can explore fraud using
other different theoreticallenses. Gathering data from more than one bank and for a longer period of analysis
may provide more accurateresults.
Practical implications This study provides some recommendations for fraud prevention in the
banking industry in Ghana. The major one is the need for the central bank to collaborate with nancial
institutions to set up an effective creditworthiness system that will aid the monitoring of activities of the
banks. Banks should also ensure that systems of controlsare reviewed regularly to identify and deal with
Originality/value This study is original, as it focuseson an industry that is highly susceptible to fraud
due to issuesof condentiality with data and with scanty literatureon fraud.
Keywords Banking, Fraud
Paper type Research paper
Despite intense eorts to stamp out corruption, misappropriation of assets, and fraudulent
activities, it appears that fraud in its various forms is a problem that is increasing in frequency
and severity (The Certied Accountant, 2009).
1. Introduction
The fraudulent scandalsthat hit international corporations such as Tyco, Merck and Co. and
WorldCom have heightened both the awareness of professionals and investors to be more
careful and meticulous in makinginvestment decisions. Without debate, fraud is a problem
Journalof Financial Crime
Vol.26 No. 3, 2019
pp. 669-682
© Emerald Publishing Limited
DOI 10.1108/JFC-08-2018-0083
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