The Effectiveness of Fraud Management Practices of Selected Financial Institutions in Makati City

Abstract

This study aimed to assess the effectiveness of fraud management practices of selected financial institutions in Makati City. The researchers used the descriptive method and included 119 employees from the Audit Department as respondents. The researcher adopted an instrument and Frequency and Percentage Distributions, Weighted Mean, t-Test, ANOVA, and Ranking were utilized as statistical tools. Most of the respondents were 31-40 years old, involved in fraud management for 1-5 years, attained college degrees, attended 1-5 training sessions on fraud management, employed in the bank for 1-5 years and possessed the supervisory level. The respondents proved to be effective in terms of fraud management organization, indicators of financial fraud, fraud detection management, and fraud mitigation processes. There was a significant difference in the respondents grouped by selected profile in terms of the different areas of fraud management. Banks should revisit their fraud management policy and ensure each employee abide by the policy. The administration should be able to implement a well-designed fraud detection system and a comprehensive whistle-blower program.