Original Research

Online banking fraud detection: A comparative study of cases from South Africa and Spain

Joy Phiri, Tendani Lavhengwa, Mmatshuene A. Segooa
South African Journal of Information Management | Vol 26, No 1 | a1763 | DOI: https://doi.org/10.4102/sajim.v26i1.1763 | © 2024 Joy Phiri, Tendani Lavhengwa, Mmatshuene A. Segooa | This work is licensed under CC Attribution 4.0
Submitted: 06 September 2023 | Published: 20 March 2024

About the author(s)

Joy Phiri, Department of Informatics, Faculty of Information and Communication Technology, Tshwane University of Technology, Tshwane, South Africa
Tendani Lavhengwa, Department of Informatics, Faculty of Information and Communication Technology, Tshwane University of Technology, Tshwane, South Africa
Mmatshuene A. Segooa, Department of Informatics, Faculty of Information and Communication Technology, Tshwane University of Technology, Tshwane, South Africa

Abstract

Background: The banking sector provides online banking to offer their customers convenient and easy access to banking services. As most banking services are nowadays performed online, alarming fraudulent activities occur daily. The online banking frauds are increasingly and commonly being experienced globally and are damaging to both banks and customers.

Objectives: The goal of the study was to investigate issues in online fraud detection in the banking sector from South Africa and Spain.

Method: The study followed the Design Science Research (DSR) methodology. Data were collected through the qualitative approach particularly using focus groups and semi-structured interviews. The study followed non-probability sampling since it focussed on a specialised area of online fraud model. In total, the population size consisted of 17 participants, which included fraud technical managers, fraud investigator specialists, fraud technical specialists and data scientists.

Results: In the South African context, the study established that there is a lack of online fraud experts in the banking sector. The findings reveal that the lack of online fraud expertise may lead to banks having weak detection systems. In the Spanish perspective, the study revealed that there is a lack of law regulation that poses a high risk.

Conclusion: Given the lack of online fraud experts in the banking sector, banks are urged to acquire and develop online fraud expertise. Online banking technology is developing expeditiously than traditional transactions; therefore, regulations and policies need to be updated regularly to keep up with rapidly evolving technological changes.

Contribution: Considering the significance of global online banking, the study suggested areas that the banking sector may investigate to develop and enhance online fraud detection models to combat online fraudulent activities.


Keywords

banking sector; online banking; online banking fraud; fraud detection; fraud experts

JEL Codes

C67: Input–Output Models; C88: Other Computer Software; G18: Government Policy and Regulation

Sustainable Development Goal

Goal 10: Reduced inequalities

Metrics

Total abstract views: 316
Total article views: 213


Crossref Citations

No related citations found.