Integrity, Unethical Behavior, and Tendency of Fraud

Irianto, Gugus; Novianti, Nurlita; Rosalina, Kristin; Firmanto, Yuki

doi:10.24034/j25485024.y2012.v16.i2.213

Cited by 11 publications

(14 citation statements)

References 24 publications

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“…DiNapoli (2008), Irianto et al (2009), Said et al (2018) argued that high ethical values in individuals will hinder criminals from engaging in fraudulent activities. Brazil and Chinese banks are setting up ethics codes, designing training programs on ethics and extending adequate support from top management to develop high ethical values and reduce fraud.…”

Section: Results Of K-nn Fraud Prioritization and Validationmentioning

confidence: 99%

Internal-led cyber frauds in Indian banks: an effective machine learning–based defense system to fraud detection, prioritization and prevention

Roy

Prabhakaran²

2022

AJIM

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PurposeThe study aims to overview the different types of internal-led cyber fraud that have gained mainstream attention in recent major-value fraud events involving prominent Indian banks. The authors attempted to identify and classify cyber frauds and its drivers and correlate them for optimal mitigation planning.Design/methodology/approachThe methodology opted for the identification and classification is through a detailed literature review and focus group discussion with risk and vigilance officers and cyber cell experts. The authors assessed the future of cyber fraud in the Indian banking business through the machine learning–based k-nearest neighbor (K-NN) approach and prioritized and predicted the future of cyber fraud. The predicted future revealing dominance of a few specific cyber frauds will help to get an appropriate fraud prevention model, using an associated parties centric (victim and offender) root-cause approach. The study uses correlation analysis and maps frauds with their respective drivers to determine the resource specific effective mitigation plan.FindingsFinally, the paper concludes with a conceptual framework for preventing internal-led cyber fraud within the scope of the study. A cyber fraud mitigation ecosystem will be helpful for policymakers and fraud investigation officers to create a more robust environment for banks through timely and quick detection of cyber frauds and prevention of them.Research limitations/implicationsAdditionally, the study supports the Reserve Bank of India and the Government of India's launched cyber security initiates and schemes which ensure protection for the banking ecosystem i.e. RBI direct scheme, integrated ombudsman scheme, cyber swachhta kendra (botnet cleaning and malware analysis centre), National Cyber Coordination Centre (NCCC) and Security Monitoring Centre (SMC).Practical implicationsStructured and effective internal-led plans for cyber fraud mitigation proposed in this study will conserve banks, employees, regulatory authorities, customers and economic resources, save bank authorities’ and policymakers’ time and money, and conserve resources. Additionally, this will enhance the reputation of the Indian banking industry and extend its lifespan.Originality/valueThe innovative insider-led cyber fraud mitigation approach quickly identifies cyber fraud, prioritizes it, identifies its prominent root causes, map frauds with respective root causes and then suggests strategies to ensure a cost-effective and time-saving bank ecosystem.

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Section: Results Of K-nn Fraud Prioritization and Validationmentioning

confidence: 99%

Internal-led cyber frauds in Indian banks: an effective machine learning–based defense system to fraud detection, prioritization and prevention

Roy

Prabhakaran²

2022

AJIM

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“…Peltier-Rivest (2018) juga menemukan bahwa lingkungan kerja yang positif dan tatakelola yang beretika juga termasuk kedalam model yang efektif dalam pencegahan fraud. Dalam penelitian Irianto et al, (2018) menunjukkan bahwa lingkungan yang beretika dapat mendorong keputusan yang dilandasi oleh prinsip-prinsip etika daripada keputusan yang didasarkan pada kepentingan pribadi, atau dengan kata lain tendensi kecurangan keuangan dapat dikurangi manakala berada dalam lingkungan yang beretika. Lingkungan kerja yang baik selalu menciptakan dampak positif pada kinerja karyawan (Shanty & Mayangsari, 2019).…”

Section: Rahil S Akun Sugiyarti Fatma Laelaunclassified

Etika Islami Dan Kecurangan Pada Profesi Akuntan Manajemen: Dampak Moderasi Kualitas Pengendalian Internal Dan Lingkungan Kerja

Laela¹,

Akun²

2022

jrm

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This study aims to analyze the influence of Islamic ethics on fraudulent behavior. In addition, this study also analyzes the moderating impact of the internal control system and work environment variables on the relationship between ethics and fraud. All variables were measured using a questionnaire instrument. By using respondents of 131 management accountant from various industries, the research uses SEM-PLS to test the proposed hypotheses. The results of the study are able to answer the three objectives, namely (1) Islamic ethics reduce fraudulent behavior of management accountants, (2) an effective internal control system strengthens the influence of Islamic ethics in reducing fraudulent behavior, (3) a conducive work environment strengthens the influence of ethics in reduce fraudulent behavior. This study complements the empirical studies of Islamic ethics for the accounting profession. The research implication for the management accounting profession is the need to consider the universal aspect of religiosity as part of the professional code of ethics. For management, this study supports the need for the design and implementation of a healthy and effective internal control system and organizational environment.

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“…Financial Statement Fraud (Kecurangan Laporan Keuangan) Asosiasi Certified Fraud Examiners (ACFE) mendefinisikan kecurangan dalam laporan keuangan sebagai adanya rekayasa dalam penyajian laporan keuangan dimana kondisi keuangan perusahaan yang dicapai melalui salah saji yang disengaja atau penghilangan jumlah dan pengungkapan dalam laporan keuangan untuk menipu pengguna laporan keuangan (ACFE, 2016). Praktik paling sederhana dari Financial Statement Fraud adalah melakukan penyajian po-pos laporan keuangan yang lebih tinggi (overstated) atau lebih rendah (understated) dari yang semestinya (Irianto dan Novianti, 2019). Tindakan fraud dapat terjadi karena adanya dorongan dalam diri untuk kepentingan pribadi atau kelompok.…”

Section: Definisi Fraudunclassified

“…Teori mengenai penyebab terjadinya fraud terus berkembang. Teori terbaru yang mengupas faktor-faktor fraud lebih dalam diajukan oleh Crowe Howarth pada tahun 2010 (Irianto dan Novianti, 2019). Teori fraud pentagon merupakan perluasan dari teori fraud triangle terdiri dari 3 elemem yaitu pressure, opportunity, dan rationalization yang sebelumnya dikemukakan oleh Cressey, dan fraud diamond oleh Wolfe dan Hermanson ( 2004) mengemukakan diamond theory terdapat 4 elemen penyebab fraud dimana merupakan perluasan dari triangle theory.…”

Section: Fraud Pentagonunclassified

Pengaruh Fraud Pentagon Dalam Mendeteksi Financial Statement Fraud (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bei Tahun 2015-2019)

Septianda,

Diah P.A,

Yustien

2022

JAR

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Penelitian ini bertujuan untuk menguji pengaruh Fraud Pentagon terhadap Financial Statement Fraud pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) periode 2015-2019. Variabel yang di teliti adalah Financial Target, Financial Stability Pressure, External Pressure, Ineffective Monitoring, Nature of Industry, Change in Auditor , Change in Director, Frequent Number of CEO’s Pictures , Political Connection, dan Dualism Position. Financial Statement Fraud dalam penelitian ini diukur dengan F-Score. Sampel penelitian ditentukan dengan teknik purposive sampling, dan didapatkan 110 perusahaan. Analisis yang digunakan adalah analisis regresi linear berganda. Hasil penelitian membuktikan bahwa secara simultan variabel Financial Target (X1), Financial Stability Pressure (X2), External Pressure (X3), Ineffective Monitoring (X4), Nature of Industry (X5), Change in Auditor (X6), Change in Director (X7), Frequent Number of CEO’s Pictures (X8), Political Connection (X9) dan Dualism Position (X10) berpengaruh terhadap Financial Statement Fraud. Sedangkan secara parsial variabel yang berpengaruh hanya Financial Target (X1), Financial Stability Pressure (X2), External Pressure (X3), Nature of Industry (X5), Change in Director (X7), Political Connection (X9).

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Integrity, Unethical Behavior, and Tendency of Fraud

Cited by 11 publications

References 24 publications

Internal-led cyber frauds in Indian banks: an effective machine learning–based defense system to fraud detection, prioritization and prevention

Internal-led cyber frauds in Indian banks: an effective machine learning–based defense system to fraud detection, prioritization and prevention

Etika Islami Dan Kecurangan Pada Profesi Akuntan Manajemen: Dampak Moderasi Kualitas Pengendalian Internal Dan Lingkungan Kerja

Pengaruh Fraud Pentagon Dalam Mendeteksi Financial Statement Fraud (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bei Tahun 2015-2019)

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