An assessment of bank fraud trends and its determinants: The case of CBE
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Date
2024-06-03
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A.A.U
Abstract
Bank fraud in Ethiopia has increased in alarming rate. According to the Ethiopian Federal Police
Crime Investigation Bureau's annual report for 2018 and 2019, Ethiopian banks lost 326,343,280
Birr in just those two years. The study assessed the trends of bank fraud and its determinants in
the case of CBE. The study used descriptive research design methods. This is because
quantitative number of frauds cases counted with sampled call center staff responses to
understand types, causes, effects and possible higher level action points. Accordingly, we can
understand the overall trends and patterns of frauds specifically related to negative consequences
of digitization of banking services. The study interest of population was the CBE Call center
customers fraud related complaints that registered on CRM and 89 questionnaires were also
distributed to managers and staff of the call center. The identification of the CBE Call center
managers and employees done through stratified random sampling techniques.
Through the completion of tally sheets, the delivery of structured surveys, and the reading of
several CBE publications and articles, both primary and secondary data gathered. Times series
analysis non-parametric Mann-Kendall‟s trend test were applied to assess the trend and in order
to forecast fraud from June to November ,2023, ARIMA technique were used. The total number
of fraud cases recorded in CRM from April 1,2022 to May 31,2023 was 495. The researcher
selected this period due to the fact that an appropriate data had been recorded at the CBE Call
center during this time. There was a modest increase of frauds in the stated period. As it can be
summarized from the study, 75% of the respondents believed that customers are losing their
confidence on banks because of such increasing cases of frauds. Therefore, various proposed
actions shall be taken to reverse such trends.