Identifying the Risk Factors Affecting Banking Fraud by Delphi Method (Case Study: Resalat Bank of Isfahan Province)

The recent financial scandals, the reported frauds, and the increased severity of concerns over money laundering have made banks and financial institutions actively seek to accelerate the identification of the determinants of fraud. Therefore, the primary goal of this study was to identify the risk factors influencing the likelihood of bank frauds. The present study is an applied study with regard to its goal and a descriptive survey study with regard to its method. Research data is collected using the Delphi method and questionnaires completed by ۴۱ experts (including the computer-based accounting information system experts, the administration’s experts, and the internal audit and financial examination experts in the branches of Resalat Bank in Isfahan Province) from ۲۰۱۶ to ۲۰۱۷. The resulting data is analyzed using the t-test, Kolmogorov–Smirnov test, and Kruskal–Wallis test. The research findings show that the risk factors associated with "financial instability", "liquidity", "managers’ failure to abide by the internal controls and binding standards", and "internal security threats" influence the occurrence of fraud. Considering the research findings, financial institutions and banks in Iran could prevent fraud occurrence through having a more accurate plan, providing necessary contexts for improving the awareness of all the personnel on fraud risk factors and other antifraud methods including creating a proper moral atmosphere along creating motivation for the personnel. The findings in this study could help with gaining knowledge on the weak points of the banks’ internal control systems and identifying the main risk factors in fraud occurrence.

Keywords:

fraud , Delphi method , fraud risk factors , Bank , Iran