| dc.description.abstract | Fraud is one of the most serious corporate problems, and challenges in today's business
environment. In the banking industry, many frauds are perpetrated through falsified payment
instruments including computer fraud, Card fraud and Mail order fraud that’s commonly referred
to as internet fraud.Frauds in Kenyan banks only prove that financial liberalization aggravates
the inherent tendency of shallow markets to foster excessive speculation and worsens the
systematic consequence of such speculative activity. Revelations of electronic fraud, evidence of
insider trading and consequent collapse of investor interest have led to an almost unstoppable
downturn in Kenyan banks. Bank frauds concern all citizens. It has become a big business today
for fraudsters.KCB Kenya is divided into 5 regions of operation namely; Western region, Coast
Region, Central Region, Nairobi Region, and Great Rift Region. The study specifically sought to
determine the factors influencing electronic fraud in the banking industry in Kenya in reference
to Kenya Commercial Bank (Central Region). This study employed descriptive survey design.
The population of interest in this study comprised of all staff of Kenya Commercial Bank central
region.KCB Kenya Central region had 37 branches and a total of 630staff members as at time of
the study. From the above population of 630, a representative sample of 241 staff members was
drawn. The study employed stratified random sampling technique in selecting the staff members
based on their department and their management level. Primary data was collected using
questionnaires.On the other hand secondary data was collected from newspapers, published
books, journals and magazines as well as other sources. The data was then analyzed using
descriptive statistics. The researcher further employed multi-linear regression model to study the
causes of electronic fraud in the banking industry in Kenya.The findings were presented using
tables and graphs for further analysis and to facilitate comparison.The study found that level of
awareness of the customer had the greatest effect on the electronic fraud in the banking industry,
followed by security controls, then quality management while level of salaries and remuneration
had the least effect to the electronic fraud in the banking industry.The study recommends that the
top management in the banks should ensure that they fully support fraud detection policies by
allocating enough resources to them in order to gain a competitive edge.The banks should
encourage teamwork, improve the working environments and set clear roles and responsibilities.
There is need to improve on the efficiency of communication between the branches and
interdepartmental communication at Kenya Commercial Bank as network failure is a major
contributor to fraud. This will enhance the vigilance at all the quotas and enhance better
understanding of policies and fastens decision making. The administration at the banks should
enhance the employee morale and satisfaction through bonuses and allowances. Customers
should review their agreement with the bank and know what rights they may be waiving by not
using certain security measures. | en |
