Effectiveness of fraud detection and prevention practices at KCB bank – Uganda

Abstract

The study was aimed at assessing the effectiveness of fraud detection and prevention practices at KCB Bank– Uganda as the case study. The study was guided by three specific objectives which included to assess the effectiveness of fraud detection and prevention practices at KCB Bank, o identify factors affecting the effectiveness of fraud detection and prevention practices at KCB Bank and to suggest strategies that will facilitate effective fraud detection and prevention practices at KCB Bank A cross sectional survey design was used basing on the population of 59 respondents who were employees of KCB Bank. Closed and open ended questionnaire were used to collect data. Data was analyzed using SPSS to capture sample characteristics and percentage frequency distribution perception of the respondents. The study findings showed that most of the respondents were familiar with the various fraud detection and prevention strategies used by KCB Bank. On the factors affecting the effectiveness of fraud detection and prevention practices, it was found out that training provided on fraud detection and prevention is adequate, the technology used for fraud detection is up-to-date and effective, there is a clear reporting process for suspected fraudulent activities and communication channels for reporting suspicious activities are easily accessible. On strategies, it was established that that there is need for regular staff training and awareness programs on fraud detection and prevention, there is need to use advanced technology and tools for fraud detection, management should conduct regular internal and external audits focused on fraud prevention and there is need to encourage a culture of vigilance and reporting among staff members in the bank, on strategies. The study recommended that there is need to consider implementing ongoing refresher courses and workshops to ensure staff members stay updated with the latest fraud trends and prevention techniques. There is need to continue to prioritize investment in cutting-edge technology solutions for fraud detection. Regularly evaluate and adopt emerging technologies and tools that can further enhance the bank's ability to detect and prevent fraudulent activities. Maintain transparency and clarity in the reporting process. Consider conducting periodic drills or simulations to familiarize staff with the reporting procedures, ensuring they are confident and proficient in reporting suspicious activities.