An Evaluation of the effectiveness of anti-fraud measures in commercial banks in Zimbabwe. A Case study of commercial banks in Harare CBD.

Abstract

Fraud remains one of the major challenges facing the banking sector, particularly as technological advancements continue to create new opportunities for fraud. This study evaluated the effectiveness of anti-fraud measures in commercial banks in Harare, Zimbabwe. The objectives of the study were to identify the common types of fraud affecting commercial banks, examine the anti-fraud measures currently implemented, assess their effectiveness, determine the factors influencing that effectiveness, and propose strategies to strengthen fraud prevention and detection. The study adopted a descriptive cross-sectional research design guided by a pragmatic research philosophy with a quantitative orientation. Primary data were collected using self-administered questionnaires distributed to employees involved in fraud prevention, compliance, internal auditing, risk management, fraud investigation and information technology security within selected commercial banks in Harare. A purposive sampling technique was used and 41 usable questionnaires were obtained for analysis. Quantitative data were analysed using descriptive statistics, while responses from open-ended questions were analysed thematically to support and explain the quantitative findings. The findings revealed that identity theft, card fraud, cyber fraud, loan fraud and insider fraud were among the most common forms of fraud experienced by commercial banks. The results further showed that anti-fraud measures such as internal controls, employee training, fraud awareness programmes, data analytics, audits, whistleblowing mechanisms and transaction monitoring systems contribute to fraud prevention and detection. However, the effectiveness of these measures is constrained by factors such as rapidly evolving technology, inadequate employee awareness, limited financial resources, weak enforcement mechanisms and challenges associated with cyberenabled fraud. The study concluded that although commercial banks in Harare have implemented a range of antifraud measures, fraud incidents continue to occur and have generally increased over recent years. This suggests that existing measures require continuous improvement to keep pace with emerging fraud risks. The study recommends increased investment in advanced fraud detection technologies, regular employee training and awareness programmes, strengthened internal controls, enhanced inter-bank collaboration and improved regulatory support to strengthen the effectiveness of antifraud measures within Zimbabwe's banking sector.