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Abstract
E-Banking fraud is an issue being experienced globally and is continuing to prove costly to both banks and customers. Frauds in e-banking services occur as a result of various compromises in security ranging from weak authentication systems to insufficient internal controls. Lack of research in this area is problematic for practitioners so there is need to conduct research to help improve security and prevent stakeholders from losing confidence in the system. The purpose of this paper is to understand factors that could be critical in strengthening fraud prevention systems in electronic banking. The paper reviews relevant literatures to help identify potential critical success factors of frauds prevention in e-banking. Our findings show that beyond technology, there are other factors that need to be considered such as internal controls, customer education and staff education etc. These findings will help assist banks and regulators with information on specific areas that should be addressed to build on their existing fraud prevention systems.
Keywords: E-Banking; E-banking Frauds Prevention; Internet Banking Security; Fraud Prevention; Critical Success Factors
© Ahmad Kabir Usman and Mahmood Hussain Shah, 2013
INTRODUCTION
Electronic banking services are the banking class of services that can be offered by a bank to individuals and companies through electronic means via a fixed or mobile telephone, and Internet (RATIU, 2011). Given that internet technology has evolved considerably over the years, newly developed e-banking services now differ considerably from older systems (Khan and Mahapatra, 2009). Some of the more common types of E-Banking services today are Online Banking, Automated Teller Machines (ATM), Electronic Funds Transfer, Electronic Cheque Conversion, Direct Payment and Web ATM services. There are many security issues related to all of these services and this paper aims to highlight factors that could be critical to the prevention of fraud in the e-banking space by reviewing relevant literature.
The online banking channel is the cheapest delivery channel for delivering banking products once established (Sathye, 1999 and (Tero Pikkarainen, 2004). Therefore it is no surprise that the banks globally are continuing to shift towards e-banking services. With the growing patronage of e-banking services and its anticipated dominance in the near future, some of the known factors that contribute to addressing the acute problem of security must be addressed. This...