Fraudulent Practices in the Banking Industry of Pakistan: Causes and Possible Remedies

Abstract

The report aims to determine the possible causes of frauds and their remedies in the banking industry of Pakistan. This study made use of primary data and there was a total of 101 questionnaires. A survey form was prepared which included a set of closed-ended questions. Data were entered into SPSS 25.0 software. On the 101 responses received, a frequency analysis was performed, and through it, frequency tables and bar charts were obtained for data analysis. Results indicated that frauds do occur in the banking industry of Pakistan which is an inadequate situation to be in. Possible causes of the frauds were bank’s staff and customers colliding to fraud, management fraud, and staff downsizing. And possible remedies were effective internal controls, developing control units, proper application of whistleblowing policy, strict adherence to staff recruitment procedures, and an upward review of staff remuneration. Based on the remedies extracted from the analysis, recommendations are made