The influencing factors of employee fraud in Malaysia's financial institution: the application of fraud triangle theory
Dhamayanthi Arumugam, Kavitha Arunasalam, Kannan Asokan · 2024
The fundamental incentive for an employee to engage in fraudulent activities is financial gain. Financial institutions, due to their significant monetary holdings, are particularly susceptible to such fraudulent behavior. Discussions regarding employee fraud are warranted in the current global economy, particularly inside financial institutions. This study utilizes the fraud triangle theory to investigate the elements that influence employee fraud in financial institutions in Malaysia. This theory is corroborated by the routine activity theory. The researcher employed questionnaires to gather perceptions from individuals affiliated with Financial Institutions. The research findings suggest that an employee’s inclination to engage in fraudulent behavior is influenced by the components of the fraud triangle, namely pressure, opportunity, and rationalization.