• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2014 Vol.5(2): 176-179 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2014.V5.365

Types of Fraud among Islamic Banks in Malaysia

R. Abdul Rahman and I. S. Khair Anwar
Abstract—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.

Index Terms—Fraud, Islamic banks, fraudulent statement.

Rashidah Abdul Rahman is with the Accounting Research Institute (ARI), Universiti Teknologi Mara(UiTM), Shah Alam, Selangor, Malaysia (e-mail: shidah@salam.uitm.edu.my).
Irda Syahira Khair Anwar is with the Faculty of Accountancy, Universiti Teknologi MARA Perak, Malaysia (e-mail: irdas360@perak.uitm.edu.my).


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.

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