ASSESSING MANAGEMENT PRACTICES ON ELECTRONIC FRAUD PROTECTION AMONG COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
Abstract
The purpose of the study was to assess the management practices on electronic fraud protection among commercial banks in Nairobi County, Kenya between the years 2015 to 2020. The specific objectives of the study were to establish the influence of communication and staff training on fraud protection among commercial banks in Kenya. The study findings would be of great significance to the policy makers, the government, head of department and the students. The two theories that shaped the study were Ethics Position Theory and Fraud Management Life Cycle Theory. A descriptive design was used. The target population was 168 finance managers and 168 IT staff from the 42 commercial banks in Nairobi. A stratified random sampling approach was used for the study to ensure the presence of the key subgroups within the sample; the sample size was 77 respondents. The study instruments were questionnaires. A sample size of 15 was chosen to form the pilot study. The pilot study was conducted on 15 managers of deposit taking microfinance institutions in Nairobi County in Nairobi County. Collected data was edited thus lowering biases and increase the precision and improve on consistency. The data was then analyzed using SPSS software. Descriptive analysis and regression analysis methods were utilized. Analyzed data was visually displayed using frequency tables. The study found out that banks have implemented whistle blower’s policy to prevent fraud as indicated by majority of the respondents. Majority of the respondents agreed that the organization had allocated resources to train employees through regular seminars and workshops on how to prevent and combat fraud. The study conclusion was that banks had attempted to curb electronic fraud by putting in place whistle blowing policies. Training was an important part of the strategy by commercial banks in combating fraud as employees needs to know the emerging trends in electronic fraud. The study recommended that commercial banks in Kenya should have strong whistle blower protection policy. Commercial banks should have in place regular training programs to protect the banks from cases of fraud. Commercial banks and various government investigative agencies should share data on the trends of fraud so as to enable them to form a collective response.
CITATION: Karuoya, E. W., & Jeptoo, C. (2022). Assessing management practices on electronic fraud protection among commercial banks in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 147 – 159.
Key Words: Communication, Organization Policies, Fraud Protection
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2170
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