—The aim of this study is to identify the common
types of bank fraud that frequently happen in Islamic banks,
the underlying determinants and the amount of losses as a result
of fraud cases. The targeted respondents are among managers
and officers within Islamic banks in Malaysia. Out of total the
255 questionnaires sent to the respondents, 146 responses were
received, giving a response rate of 57.25%. The results indicate
that fraudulent statement is the type of fraud that frequently
occurred in Islamic banks followed by credit card fraud.
Meanwhile, most of the respondents expected the amount of
damages due to fraud was more than RM1 million.
Furthermore, greed is expected to be the strong determinant of
fraud, followed by non-compliance along with insufficient
control and financial pressure in the third rank. Insufficient
control can be related to the opportunity element in the fraud
triangle theory meanwhile financial pressure represents the
pressure element of the fraud triangle.
—Fraud, Islamic banks, fraudulent statement.
Rashidah Abdul Rahman is with the Accounting Research Institute
(ARI), Universiti Teknologi Mara(UiTM), Shah Alam, Selangor, Malaysia
Irda Syahira Khair Anwar is with the Faculty of Accountancy, Universiti
Teknologi MARA Perak, Malaysia (e-mail: firstname.lastname@example.org).
Cite: R. Abdul Rahman and I. S. Khair Anwar, "Types of Fraud among Islamic Banks in Malaysia," International Journal of Trade, Economics and Finance vol.5, no.2, pp. 176-179, 2014.