For a better understanding of the information gathered, this section aims to further address studies and literature related to current research to move towards new directions that could shed light on more facets of the different banking institutions regarding the frauds they suffer. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay This essay is composed of the researchers' vetted interpretations of published and unpublished articles and other related literature, local and foreign research and studies that have provided sufficient information and facts regarding the topic. Banks are the engines that drive the processes in the monetary sector, in financial exchanges, in the progress and development of a country in terms of economy. With the constant industrialization of the financial sector, fraud in this sector is also accumulating rapidly, and people practicing fraud have started to use creative methods. Furthermore, the money industry labels the intensification of fraud as “an unavoidable cost of doing business.” With the advent of creative financial products and the increase in the range and size of transactions across borders, fraud in the financial world has intensified to new levels. According to Nayak & Singh (2015), banking and financial systems have been the fulcrum of the progress and improvement of all humanity since the beginning. The strength of a country's banking and financial system helps determine the creation and use of goods and services within a nation. It is directly indicative of the well-being and life principles of the citizens of a country. Therefore, if the banking system is plagiarized by high levels of non-performing assets on banks' balance sheets, financial distress of borrower customers and inadequacies in transmission, then it is a cause for concern for the economy. In major economies, banks are the main reservoirs of people's financial funds, the central nerve of the repayment system, the receptacle capable of generating capital and distributing monetary funds, and the channel through which financial and lending regulations are carried out. The triumph of financial regulations, to a large extent, depends on the form and conditions of the monetary organizations through which the regulations are met. Whatever difficulties hinder the proper execution of the banking sector, they will invariably have numerous repercussions on other sectors of the economy. This is one reason why it is crucial to quickly identify any reasons that may hinder the efficient functioning of the monetary sector and address those concerns immediately. As defined by Chakrabarty (2013), fraud is an act or omission intended to cause wrongful gain to one individual and wrongful harm to another, through suppression of facts or otherwise. It is a measured act of omission or commission by any person, done in carrying out a banking transaction or in the books of accounts maintained manually or by computer systems in banks, which has resulted in an illicit profit for any person for a momentary period or otherwise, with or without any monetary loss to the bank. Fraud can be described as an intentional act of deception intended to gain an undue advantage at the expense of an association losing assets or some legitimate privileges. On the other hand, the Institute of Internal Auditors (2010) explained fraud as any wrongful act measured as deception, concealment, or damage to trust. Frauds are propagated by individuals to obtain money, goodsor services; to evade payment or loss of services, or to secure private or business benefits. Yego (2016) added that the bank suffers damage resulting from insufficient or frivolous internal procedures, individuals and schemes, or from external proceedings.Patnaik (2012) defined fraud as a danger to an organization's reputation and its relationships and exchanges with external investors, such as customers, retailers, bankers, and business associates. Furthermore, bank fraud carried out by an entity or company which is carried out by deceptive or illegal means and aims to offer an advantage to the entity or company responsible for the crime. As reported by ACFE (2014), banking associations are becoming increasingly vulnerable to fraud over the years, despite numerous control procedures having been put in place. Likewise, fraud can result in huge monetary compensation. Since banking organizations participate in the large and extensive scope of transactions, fraud could create problems not only for various sectors, but also for the banking institution itself. Patnaik (2012) further explained that these frauds are becoming more and more recurring and can be considered as a major cause of damage to the nation's economy and with such high profile deceptions occurring across the country, it has become mandatory to evaluate this type of crime and, if feasible, generate a stricter code and decree to deal with these concerns. As reported by Net Guardians (2016), fraud is a huge business, costing the financial sector $67 billion per year, as reported by the Association of Certified Fraud Examiners. It's a struggle no one can ignore as companies struggle to recover from global monetary issues and the world's major economies teeter on the brink of economic decline. But the most disturbing thing is that its emergence is accelerating. Pricewaterhouse Coopers or PwC (2015) also states that industry specialists suspect that this number is actually much higher, as companies are unable to accurately recognize and quantify losses due to fraud. In the current unstable economic situation, both the prospect and motivation to commit fraud have increased. Cases of asset misappropriation, money laundering, cyber crime and accounting fraud are piling up day by day. Dr. Sanjay Chougule, International Head of Internal Audit and Financial Crime Prevention, ICICI Bank Ltd., says that in today's world, fraud is a never-ending and rapidly growing danger. There is no such thing as flawless security, so it is analytically significant that leaders in the field of financial crime prevention work together to build strong connections and trust, to avoid, identify and respond to these dangers in a commendable and competent manner. Therefore, bank fraud is the first type of threat that any organization takes on. Managing and alleviating an association's bank fraud is an important topic for senior administrators. A huge amount of capital, stage and strength is invested in building corporate governance policies, executing internal control schemes, risk oversight approaches and training staff and personnel to comply with these methods. However, some untruthful intellectual individuals, generally referred to as scammers, still manage to discover means and techniques to overcome schemes or deceive honest people to gain admission to company funds and propertiesArora et al. (2010) stated that banks deal with people's money and therefore it is authoritative for workers to implement due precaution and meticulousness in banking transactions. GrowthModern banking fraud requires careful monitoring of security and precautionary systems. A resilient internal regulatory framework is the most operational and efficient method to deter fraud. Banks should intensify their activities to nurture the level of security awareness in their administrations to combat fraud. Fraud can be understood as an intentional falsification, concealment, or exclusion of the truth with the goal of defrauding or falsification to the monetary detriment of an individual. or a company (for example, a bank) which also includes embezzlement, theft, or any attempt to steal or unlawfully acquire, exploit, or damage the property of a bank. Therefore, fraud has become a universal dilemma that is not likely to be resolved in the coming years. It is corroding the productivity of companies with shocking concerns about the company's solvency. Therefore, bank fraud includes the fraudulent use of one's status inside or outside the bank for one's own enrichment by intentionally exploiting or misappropriating the bank's monetary capital, possessions or other assets held by the bank and earning money from the bank. bank customers (investors). a laudable essential inconvenience, particularly in the current economy. According to the International Standard on Auditing, fraud is the use of tricks to obtain an illicit profit at the expense of unwary victims. It is an intentional act performed by an individual or a group of people among the organization, workers or third parties. The world of fraud in banking organizations is very large. It could range from employee fraud to customer fraud; from institutional frauds to individual frauds; and from accounting fraud to transactional fraud. It could also cover identity theft, check fraud, counterfeit negotiable instruments, mortgage fraud, loan fraud, asset misappropriation, bribery, money laundering, credit card fraud, and the list goes on. Cited by the Federal Bureau of Investigation (FBI) in the United States that fraud is a criminal act that is considered treason, concealment, or breach of trust and that is not essentially based on the use or danger of physical force or violence. The FBI's explanation of the fraud can be reduced to lies, theft, and cheating that carry over into today's fraud structures in theoretically cultured and sophisticated banks. These descriptions show the different views and interpretations of what creates fraud. Furthermore, according to the Indian Penal Code, fraud is not directly described in a specific segment, but involves convictions and penalties for numerous acts leading to the commission of frauds. However, it contains adequate coverage of the issue of deception, suppression, falsification, fabrication, abuse and breach of trust. Fraud can sometimes manifest itself in the form of theft, mismanagement of property and assets, and even falsification of documents and is mostly supported by covert theft. In other expressions, it is the transformation of stolen goods or capital. As stated by PwC (2014), fraudulent documentation is one of the examples of fraud encountered by most banks. It is clearly stated that fraudulent documentation includes altering, changing or modifying a file to deceive another person or entity. It may also contain the knowingly inclusion of false information in files and forms. Some cases include an individual criminally acquiring someone's personal data or documents and taking out a loan in that individual's name. Additionally, it is when someone presents made-up information about their monetary situation, such as income and other assets, and takes aloan for an amount that exceeds the approved limits with the aim of non-repayment. The other cases of fraud documentation are when an individual takes a loan using a fictitious name and lacks a resilient structure that refers to address confirmations, due persistence of managers or organizers, pre-sanction investigations and recognition of faulty applications or inadequate and negative or illicit records in the customer history. It also consists of fake documentation used to confer the overdraft functionality and withdraw cash. Another is when an individual falsifies export documents and files such as air freight bills, bills of lading, export credit guarantee coverage, and customs exemption numbers or orders issued by the customs agency. Counterfeit or fraudulent documents are often exploited to cover up other embezzlements or thefts; Financial intermediaries have a tendency to count their cash accurately, so all funds must be accounted for. A document asserting that a capital sum has been used as credit, withdrawn by an individual investor or passed on or capitalized can, therefore, be vital for those who want to hide the slight appearance that the bank's money has actually been stolen and it is time disappeared. Another fraudulent incidence that has been prominent in banks recently is the siphoning of funds. It occurs when the resources lent by financial organizations are exploited for objectives unrelated to the terms and agreement of the borrower, loss and damage to the financial situation of the enterprise or creditor. It also includes the relocation of resources to certain groups of companies, financing in other companies by purchasing shares without the permission of creditors, the insufficiency in the use of capital in relation to the quantities spent or withdrawn, without the difference being accounted for. Pani & Swai (2016) added that diversion of funds occurs when resources lent by financial institutions are used for intentions unrelated to the borrower's business. It may include any of the following cases: the use of short-term labor resource funds for long-term obligations not in accordance with the terms of authorization and permit, the use of borrowed reserves for the creation of assets other than those for which the loan has been certified. As stated by Net Guardians (2016), the other fraud that jeopardizes the reputation and financial health of banks today is identity theft. While the public may view fraud as the act of carrying out prohibited business transactions, data theft plays an essential role in enabling the crime and is an area of ​​great discomfort for banks and their controllers. Banks hold large amounts of sensitive information about their customers and privacy is a major concern of any banking customer. The theft of private information is therefore detrimental to a bank's status and profile, even if no direct monetary damage results. Identity theft can occur as a result of external parties gaining access to data systems, but is equally likely as a result of internal breaches carried out by workers or employees with a high degree of access, such as database and systems managers. There is a thriving black market in stolen customer data on the Internet, including online banking and credit card information. In the best-known example of a massive data theft, IT professional Herve Falciani stole the data of 24,000 private banking clients from a sales outlet in Geneva while working on an IT project in 2007. He then passed the stolen documents to Frenchmen.