Management of Cyber Fraud in Commercial Banks in Kenya: a Case of Chase Bank

Abstract

Kenya is experiencing a growing number of Cyber fraud that threaten national security Information communications and technology infrastructure as well as citizens privacy.The objective of the study was to establish the management of Cyber fraud in commercial banks in kenya.The specific objectives of the study were to find out the forms of Cyber fraud by commercial banks, to establish the challenges faced by commercial banks in managing Cyber fraud , to evaluate the effect of preventive measures in curbing Cyber fraud in Kenyan commercial banks. The units of analysis was Cyber fraud and units of observation was management staff of the bank. The study employed qualitative approach and Primary data was obtained by census method, while secondary data was obtained through various publications referenced .Data was measured and has been presented in frequency tables, graphs and percentages.The study observes that a strong system of internal control is the most efficient way of fraud prevention and technological infrastructure has a major effect on prevention of Cyber fraud . The study concludes that commercial banks in Kenya faced various forms of Cyber fraud like Cyber fraud spam, phishing and password sniffers to great extents.The study recommends that banks should implement systems and structures that reduce the opportunities for Cyber fraud. Besides strengthening internal control systems and structures, banks can use ICT tools to reduce opportunities or instill punitive measures for employee’s engaging in fraud related incidences.