AN ANALYSIS OF EMPLOYEE FRAUD AND EFFECTIVENESS OF APPLIED MANAGEMENT STRATEGIES TO PREVENT FRAUD AT PT. BANK SULUTGO MARINA PLAZA BRANCH MANADO

Abstract

Employee fraud has been acknowledge as one of the principal threat to the development of banking sectors worldwide. No company is immune to fraud. This research analysed fraud risk factors and any applied fraud prevention management strategies at PT. Bank Sulut Marina Plaza Manado. A qualitative method was applied in this research. Data was collected by means of purposive sampling method through interview of ten selected respondents. This research revealed that factors of pressure, opportunity, psychology, were of potential red flags of fraud at PT. Bank Sulut Marina Plaza Branch Manado. The risk level of fraud of pressure factor was at level of higher, comparing to high level for opportunity and medium level for psychology factors. Moreover, the nature of employee fraud at PT. Bank Sulut Marina Plaza Branch Manado could occur in a simple form with a single causal factor or in a collaborative form.  Four factors of good recruitment procedures, good workplace condition, good salary and incentives, and internal control systems had been significantly effective to prevent fraud at the Company.

Keywords: fraud, pressure, opportunity, psychology