- Title
- The influence of financial literacy on online banking fraud detection
- Creator
- Tewo, Francine Fabiola Petato
- Subject
- Banks and banking -- Security measures
- Subject
- Bank fraud -- Prevention
- Subject
- Bank fraud -- Prevention -- Technological innovation
- Date Issued
- 2024-04
- Date
- 2024-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/65467
- Identifier
- vital:74158
- Description
- The growth of online banking, also known as e-banking, electronic banking or Internet banking, has enticed customers to perform online banking transactions. Even traditional banking institutions are encouraging their customers to adopt online banking services to offer them faster and more dependable services. Online banking services available to customers range from the ability to access their accounts, transfer money between accounts or beneficiaries to more advanced financial services such as applying for loans or making investments. Despite the benefits online banking, it does expose the user to significant risks, including financial fraud and unauthorised payments. The growth of online banking has led to an increase in opportunities for sophisticated fraudsters to commit online banking fraud by means of constantly changing methods that exploit the weaknesses in existing preventive measures, mainly targeting the financial sector and its customers. Due to negligence, curiosity or naivety, online banking fraud victims are often responsible for their own victimisation. Although there is the general perception that customers are not liable for damages incurred due to online financial fraud and that banks will refund the financial losses, the banking industry is moving towards customer co-liability to curb online banking fraud. It has been recognised that financial literacy positively influences a person’s financial behaviour, including online banking. Improving access to financial services through technology requires a higher level of financial literacy to use such services effectively and be less vulnerable to, for example, misleading advertising, fraud, hacking attacks and unauthorised use of data. Given the importance of online banking in the South African economy, as well as the increasing emphasis being placed on online banking customers to education themselves about the safe use of online banking services, the primary research objective of this study was therefore to determine the influence of financial literacy on customers’ ability to detect online banking fraud. In the literature review, the following factors have been identified that could influence online banking customers’ Ability to detect online banking fraud (dependent variable), namely: Financial knowledge, Financial behaviour, Financial attitude, Trust, Attentiveness, Awareness, Risk-perception (independent variables).The empirical investigation adopted a positivistic research paradigm, together with a deductive and quantitative methodology. The methodological strategy used to collect primary data was an online survey, that was cross-sectional in nature. The 280 completed questionnaires were subjected to statistical analyses. The validity and reliability of the measuring instrument was assessed by using a confirmatory factor analysis (CFA) and Cronbach’s alpha coefficients, respectively. Descriptive statistics were also calculated to summarise the data, while inferential statistics included Pearson’s product moment correlations, analysis of variance (ANOVA) tests and multiple regression analysis (MRA) to test the relationships amongst the dependent and independent variables. As a result of the CFA analysis conceptual framework and the hypothesised model were modified. It was hypothesised that Financial knowledge, Financial behaviour, Financial attitude, Trust, Attentiveness, and Awareness are the financial literacy factors that have a significant positive influence on online banking customers’ Risk-perception and ability to detect online banking fraud. The empirical results of this study establish the following predictors or determinants of online banking customers’ Risk-perception and ability to detect online banking fraud, namely: Trust, Awareness and Attentiveness. In doing so, this research contributes to validating the notion that certain financial literacy factors could be important to take into consideration in order to assist online banking customers to be less vulnerable by being able to assess the risk and fraud associated with using online banking services. This study theoretically contributes to the body of knowledge on financial literacy and online banking and online banking fraud in general and the influence of financial literacy factors on online banking customers’ ability to detect online banking fraud in particular in a South African context. This study will enable banks and their online banking customers to gain a better understanding of the impact of financial literacy on customers' levels of risk-perception concerning online banking fraud. This understanding could subsequently improve their awareness, attentiveness and ability to detect online banking fraud and, consequently, reduce the risk of online banking victimisation.
- Description
- Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Management Sciences, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xvi, 168 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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Collections
NMU School of Management Sciences
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Tewo, F April 2024.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |