Investigating the level of effectiveness of the anti-fraud technologies employed by the South African banking industry for cyberfraud mitigation
Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer, Mulatu Fekadu Zerihun · Journal of Financial Crime · 2023
Purpose The purpose of this study is to examine the level of effectiveness of the anti-fraud technologies employed by the South African banking industry for cyberfraud mitigation. Design/methodology/approach This research employed a qualitative research design involving a purposive sampling method. Primary data was collected from the key organisational staff across the 17 licensed commercial banks in South Africa via the use of structured questionnaires. In particular, these were experts involved in combating fraud and taking managerial decisions regarding the use of anti-fraud technologies for cyberfraud mitigation. Non-parametric statistical analyses were carried out from the responses obtained. Findings The results obtained indicated that the combination of internal and external anti-fraud technologies such as filtering software, firewalls, encryption, continuous auditing, discovery sampling, virus protection, financial ratios, digital analysis and data mining may have a positive effect on cyberfraud mitigation. These technologies are employed mostly to ensure effective internal control systems capable of minimising cyberfraud. In addition, the anti-fraud technologies employed in the South African banking industry may also be effective in the mitigation of cyberfraud, although significant cases of cyberattacks were reported by the respondents. Practical implications The study recommends investment in more digital and emerging technologies and the development of human capacities to effectively deploy them in the combat against cybercrime. Originality/value The novelty of this study lies in the identification of the type of anti-fraud technologies/software employed by the South African banking industry and their level of effectiveness or success rate.