Determining Factors and Measures to Detect and Prevent Bank Fraud for the Growth of Financial Sustainability

Abstract

Background: The ability of banks to detect and prevent fraudulent activities is critical for their sustained growth and financial viability. Fraud not only threatens institutional integrity but also impacts the broader economy.

Objective: This study aims to examine effective strategies for preventing bank fraud and to identify key internal and external factors contributing to its occurrence. It investigates the methods employed by fraudsters and highlights vulnerabilities within financial institutions.

Methods: A comprehensive review and situational analysis of existing literature were conducted to understand fraud mechanisms and prevention approaches within banks.

Results: The study finds that a multifaceted fraud detection system based on diverse determinants is essential. Proactive measures integrating multiple prevention tactics significantly enhance banks’ ability to detect, prevent, and control fraudulent activities.

Conclusion: Effective fraud management systems play a vital role in ensuring institutional growth, stability, and long-term sustainability in the banking sector. Maintaining the integrity of financial institutions through robust fraud prevention is crucial for economic health.