Banking Fraud: A Customer-Side Overview of Categories and Frameworks of Detection and Prevention

Document Type : Review Article


1 Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabatabaie University, Tehran, Iran

2 Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran


Online banking and digital payments are among the most fundamental solutions offered within the present-day banking system to simplify the usage of financial services for businesses or individual customers. The pivotal role of these solutions in today business makes them equally favorable for end-users and for cyber-criminals. It is no secret that reputational risk mitigation besides regulatory compliance have always been among the first priorities of banking and financial institutions. Hence, detection and prevention of fraudulent activities are crucial for both customers and institutions in banking industry. The importance of banking fraud, compared to the well-known research title of financial fraud, becomes more obvious when it is studied as a topic that has rarely been discussed before. This study, based on an initial categorization of banking fraudulent activities according to the literature, intends to provide an overview of existing fraud detection and prevention frameworks from a customer-side point of view. Hence, six categories of banking fraud are identifiable. Challenges of fraud detection in operational environments, and behavioral and technical prevention approaches are the other subjects to be explored in the paper. Anomaly detection, artificial intelligence, and machine learning are some key prevention approaches to be discussed here.