The problems of fraud and corruption in financial institutions

• Main Author: Teh, Yik Koon
• Format: Article
• Language: English
• Published: Universiti Utara Malaysia 1998
• Subjects: HV Social pathology. Social and public welfare
• Online Access: http://repo.uum.edu.my/806/1/Teh_Yik_Koon.pdf; http://repo.uum.edu.my/806/; http://ijms.uum.edu.my

This paper is a product of case studies on fraud and corruption in financial institutions in Malaysia. It involves piecing together the complicated cases in order to show how fraud can be committed in financial institutions. The examples of fraud that will be given illustrate the different ways money can go missing. However, due to banking secrecy, no names of the financial institutions will be revealed. In the first section, this paper will give examples of fraud that have taken place in order to illustrate the different ways it can be perpetrated and how the money cango missing. From the examples given, the structure of the organisation that is problematic and conducive to fraud and corruption will be discussed, and this will be the focus of the second section. This will shed some light on the possible preventive methods that can be adopted by the organisation. Lastly, some suggestions will be given on what can be done to help lessen fraud and corruption in financial institutions.