The assessment of the impact of cyberfraud in the South African banking industry
| Date | 01 February 2023 |
| Pages | 287-301 |
| DOI | https://doi.org/10.1108/JFC-10-2022-0260 |
| Published date | 01 February 2023 |
| Author | Oluwatoyin Esther Akinbowale,Heinz Eckart Klingelhöfer,Mulatu Fekadu Zerihun |
The assessment of the impact of
cyberfraud in the South African
banking industry
Oluwatoyin Esther Akinbowale,Heinz Eckart Klingelhöfer and
Mulatu Fekadu Zerihun
Faculty of Economics and Finance, Tshwane University of Technology,
Pretoria, South Africa
Abstract
Purpose –The purpose of thisstudy is to assess the impact of cyberfraud in the SouthAfrican banks with
the aim to provide recommendationsto effectively mitigate it.
Design/methodology/approach –The study uses a qualitative approach involving the use of
structured questionnaires.The questionnaires were made available to the staff of 17 licensed banks in South
Africa who deal with management, operation, administration and banking services. Two hypotheses were
formulated and non-parametricstatistical analyses involving the use of Chi-square test, Fischer’sExact test
and Spearman’s correlation were carried out. The two hypotheses formulated were tested to draw a
conclusion.
Findings –The results obtained indicate that the impact of cyberfraud in the South African banking
industry is highly significantand has affected the reputation of some of the banks. This calls for the need to
review the diverseways of curbing cyberfraud to lessen their impact and that of associatedfraud risks on the
banking operation.
Practical implications –This study providesan analysis on the relationship cyberfraud occurrencesand
the reputation of South African banks. The implementation of the recommendations may reinforce the
existingsecurity measures in the fight against cyberfraud.
Originality/value –The novelty of this study lies in the fact that the assessment of the impact of
cyberfraud on the banking industry in South Africa has not been sufficiently highlighted by the existing
literature.
Keywords Banking operation, Cyberfraud, Fraud risk, Reputation
Paper type Research paper
1. Introduction
Fraud is a critical problem of global concern(Gbegi and Adebisi, 2014, p. 234). It involves the
use of occupation for personal benefit via a deliberate misuse or misappropriation of an
organisation’sresources [Association of Certified Fraud Examiners (ACFE),2012,2019].
The South Africa banking industry is managed and controlled by the South Africa
Reserve Bank (SARB) as the regulatory authority over the banking industry and financial
institutions, aiming to achieve a robust and efficient banking system in the interest of the
© Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer and Mulatu Fekadu Zerihun. Published
by Emerald Publishing Limited. This article is published under the Creative Commons Attribution
(CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this
article (for both commercial and non-commercial purposes), subject to full attribution to the original
publication and authors. The full terms of this licence may be seen at http://creativecommons.org/
licences/by/4.0/legalcode
Impact of
cyberfraud
287
Journalof Financial Crime
Vol.31 No. 2, 2024
pp. 287-301
EmeraldPublishing Limited
1359-0790
DOI 10.1108/JFC-10-2022-0260
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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