Perceptions of online fraud and the impact on the countermeasures for the control of online fraud in Saudi Arabian financial institutions

Abstract

This study addresses the impact of countermeasures in the control and prevention of online fraud in Saudi Arabia and the influence of the environmental context. Combatting online fraud is facilitated when the public is fully educated and is aware of its types and of the prevention methods available. People are reliant on the Internet; the possibility of being breached by hackers and fraudsters is growing, especially as socialising, online shopping and banking are carried out through personal computers or mobile devices. Online fraud has been described as an epidemic that has spread to most online activities. Its prevalence has been noted to be in regions where there is high adoption of e-commerce, and, along with it, large online financial transactions. The argument is therefore the measures taken are either are inadequate or have failed to effectively address all the issues because of the organisational and environmental context of the country. This research aims to examine online fraud perceptions and the countermeasures designed and used by financial institutions in Saudi Arabia to control and prevent online fraud in its environmental context, to examine the effectiveness/impact of the countermeasures and to examine the factors that may affect/influence the impact of the countermeasures. The qualitative method approach was chosen to ensure balanced coverage of the subject matter. The nature of the research requires a broader, in-depth, examination of the experiences of the participants from their own perspective. Meanwhile levels of awareness are low, because of lack of knowledge and training, a lack of government sensitisation and the religious inclinations of the population. The findings also confirm the efforts of organisations to put in place countermeasures using various technological means, coupled with procedural controls and checks. The measures create obstacles to most customers, who find it cumbersome to engage in online activities because of those procedures and checks. The findings also show two types of regulations: government and organisational rules, with different foci and purposes, which are mostly centred on the monitoring of Internet operations and operational guidelines. The enforcement of rules in the light of prosecuting offenders has also been minimal and passive. The countermeasures of most banks/organisations mostly focus on prevention and detection. However, the findings suggest that the activities in each component and their interrelationships have a collective impact on combatting online fraud. The success of any effort or approach to combat fraudulent activities therefore depends on the activities of the four countermeasure components.