Evaluating the Design of Anti-Fraud Programs in the Palestinian Banking Sector رسالة ماجستير

Abstract

This study examined the design of anti-fraud programs for banks operating in the Palestinian banking sector from the perspective of assurance providers and attempted to identify factors/methods that contribute to fraud risk management (FRM) from the perspective of assurance providers. The study has also attempted to introduce the components of FRM and explore the roles of different assurance providers with regards to FRM in the theoretical framework section of the study. For the first two objectives, a mixed method approach was employed to collect data. Thus, quantitative data was collected via questionnaires targeting internal assurance providers who work in banks operating in Palestine. In addition, qualitative data was collected via structured interviews with seniors who work closely with the banking sector. Findings indicate that banks operating in the Palestinian banking sector have established anti-fraud programs to address fraud risks. However, the maturity level and alignment of these programs with risk exposure vary across the sector. Moreover, the study identified several factors/methods that are perceived by assurance providers as being most effective in supporting FRM. The highest ratings belonged to leadership-related elements such as tone at the top, active audit committee, and active risk committee. The study concludes that while banks have established a strong foundation for FRM, enhancements are still required for board-level involvement, proactive risk assessments and specialized fraud oversight. The results also confirm that effective FRM relies on a balance of leadership involvement, continuous risk assessments and alignment, utilization of advanced technology and continuous consideration of emerging threats and fraud schemes especially in the context of digitization