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The rising trend of fraud and forgery in Pakistan’s banking industry and precautions taken against

The rising trend of fraud and forgery in Pakistan’s banking industry and precautions taken against This study aims to investigate the involvement of employees in frauds and forgeries in banking industry of Pakistan and precautions taken against it. This research explored the types of frauds prevailing in Pakistan’s banking industry, and the causes of employee involvement in frauds.Design/methodology/approachIn-depth interviews with the officers working in fraud/compliance/risk department at commercial banks as well as the officials working in the inspection and policymaking departments at the State Bank of Pakistan (SBP) were conducted. Research questions were developed under the guidance of experts working in the banking industry, so the research possesses internal validity. Data was analyzed using thematic analysis.FindingsThis study revealed that the SBP has devised many policies and guidelines for commercial banks against fraud management, but these are not properly implemented. These policies also include precautionary measures, which are recommended by the SBP to lessen fraud. Besides this, banks are also taking initiatives of their own to control the rising trend of frauds and forgeries. At the end, brief conclusion and effective recommendations are given to the practitioners, policymakers and management.Originality/valueTo the best of the author’s knowledge, this area of management has not been explored by researchers in Pakistan; hence, this research provides valuable information to bank managers, risk management departments, risk avoidance policymakers, bank shareholders, depositors, borrowers and government agencies. This study provides deep insights into the prevalence of frauds in the banking industry of Pakistan. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Qualitative Research in Financial Markets Emerald Publishing

The rising trend of fraud and forgery in Pakistan’s banking industry and precautions taken against

Qualitative Research in Financial Markets , Volume 13 (2): 11 – Jun 7, 2021

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1755-4179
DOI
10.1108/qrfm-03-2019-0037
Publisher site
See Article on Publisher Site

Abstract

This study aims to investigate the involvement of employees in frauds and forgeries in banking industry of Pakistan and precautions taken against it. This research explored the types of frauds prevailing in Pakistan’s banking industry, and the causes of employee involvement in frauds.Design/methodology/approachIn-depth interviews with the officers working in fraud/compliance/risk department at commercial banks as well as the officials working in the inspection and policymaking departments at the State Bank of Pakistan (SBP) were conducted. Research questions were developed under the guidance of experts working in the banking industry, so the research possesses internal validity. Data was analyzed using thematic analysis.FindingsThis study revealed that the SBP has devised many policies and guidelines for commercial banks against fraud management, but these are not properly implemented. These policies also include precautionary measures, which are recommended by the SBP to lessen fraud. Besides this, banks are also taking initiatives of their own to control the rising trend of frauds and forgeries. At the end, brief conclusion and effective recommendations are given to the practitioners, policymakers and management.Originality/valueTo the best of the author’s knowledge, this area of management has not been explored by researchers in Pakistan; hence, this research provides valuable information to bank managers, risk management departments, risk avoidance policymakers, bank shareholders, depositors, borrowers and government agencies. This study provides deep insights into the prevalence of frauds in the banking industry of Pakistan.

Journal

Qualitative Research in Financial MarketsEmerald Publishing

Published: Jun 7, 2021

Keywords: Actions and precautions; Banking forgeries; Banking frauds; Employee forgeries; Employee frauds; Pakistan banking industry

References