The Effect of emerging digital security solutions on fraud risk management in the banking sector in Kenya
Date
2024
Authors
Matheri, J.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Banks and other financial institutions increasingly leverage emerging and innovative digital solutions to fight fraud. While this trend is common, the impact of some of these solutions in enhancing financial fraud detection and prevention remains unexplored in the scientific research community. This study explored the effect of emerging digital security solutions on fraud risk management in Kenya's banking sector. The independent variable, emerging digital security solutions, was depicted by biometrics technology, artificial intelligence, and data analytics, with fraud risk management being the dependent variable. The fraud triangle theory and fraud diamond theory made for the theoretical framework. The research study followed a positivism research paradigm and adopted descriptive research for research design. The units of analysis constituted 42 commercial banks in Kenya, from which a sample of 126 IT, compliance and risk management professionals were selected using a stratified sampling technique. Primary data was collected using structured questionnaires and analyzed using descriptive statistics, correlational and multiple regression analysis. Findings show that biometrics do not have a significant effect on fraud management. AI and data analytics were found to significantly affect fraud risk management in the banking sector. Therefore, this research advises banking institutions to invest more in and integrate these two emerging digital security solutions into their anti-fraud frameworks. This research also recommends expanding research to study the effect of other emerging digital solutions.
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Citation
Matheri, J. (2024). The Effect of emerging digital security solutions on fraud risk management in the banking sector in Kenya [Strathmore University]. http://hdl.handle.net/11071/15635