Knowledge management to prevent fraudulant e-banking transactions

Abstract

The growth of e-banking as financial institutions encourage customers to do online banking transactions opened opportunities for criminals and sophisticated fraudsters to perpetrate and abuse customers in their social, cyber and physical worlds. This emphasises the need for communication and knowledge sharing by the financial service industry to empower customers in identifying dynamic fraud from genuine customer behaviour. The boundary of liability with respect to fraudulent e-banking transactions is shifting from the banking industry to the customer, with the emphasis on concepts like co-liability. Despite continuous efforts by the financial industry to increase customer awareness, the dominating lack of clarity about when clients have acted negligently has become problematic, which can lead to loss of customer trust and a demand for better security. This article addresses the lack of research on this through a critical analysis of knowledge management to enhance security and customer trust in e-banking. The study investigates fraud prevention and available e-security measures, the legal consequences on co-liability to negate these potential negative consequences to the benefit of both the financial industry and the customer, and proposes a conceptual theoretical framework for e-banking fraud prevention and co-liability through proactive communication.