Towards a Cyber Resilient Banking System: Effectiveness of Cyber Fraud Risk Management Strategies Adopted by Commercial Banks in Zimbabwe

Bronson Mutanda, Maireva Chrispen



The advent of digital financial technology left the business community and its clients celebrating convenient ways of online shopping, paying bills and money transfers. However, digital banking technology came with its share of challenges, due to highly digitalised economies in the context of the Fourth Industrial Revolution, cyber fraudsters are increasingly targeting and leveraging on financial market infrastructures. Cyber security of banking institutions and the financial systems across the globe remains a major concern of Central Banks, investors, internal auditors and financial risk managers. The purpose of this research paper was to examine the efficacy of cyber fraud prevention measures used by commercial banks in Zimbabwe. The study also looked into the difficulties encountered in managing cyber-fraud. Results indicate that cyber fraud risk management strategies adopted by Commercial banks are partly effective which indicates existence of opportunities for cyber fraudsters to attacks and get away with it at the expense of clients, banks and the financial system as a whole. Results also indicate that Commercial banks are facing quite a number of challenges which include the following: lack of sophisticated systems, cyber attackers are always ahead, some of the clients do not take awareness messages send to them seriously, some clients share passwords and credit cards and lack of enough education and knowhow of employees. The study therefore concludes that, cyber fraud risk management strategies adopted by Commercial banks are partly effective. Monetary and fiscal authorities need to continue monitoring Commercial banks with regard to implementation of cyber security risk based supervision framework.


Cyber fraud; commercial banks; management strategies; resilience; risk management

Full Text:



Abdullahi R.M.N and Nuhu S.M. (2015). Fraud Triangle Theory and fraud Diamond Theory: Understanding the Convergent and Divergent for Future Research. European Journal of Business and Management. Vol 7(8)

ACI (2013). Fighting online fraud: An industry perspective. Vol. 3 pp 34

Adeyemi, A. (2010). Winning customers’ confidence: The new banking focus. The Guardian, May 26: 2

Aldasoro I.F.J., Gambacorta L., and D.W (2020). “Covid-19 and cyber risk in the financial sector”, BIS Bulletin, forthcoming. pp24-35

Australian Government Attorney-General’s Department. (2013). National plan to combat cybercrime

Brenner J. (2017). “Keeping America safe: toward more secure networks for critical sectors”, MIT Centre for International Studies and MIT Internet Policy Research Initiative.

Broadhurst, R. (2006). Developments in the global law enforcement of cyber-crime. Policing: An International Journal of Police Strategies and Management, 29(2), pp408- 433.

Carstens A. (2019). “A handful of cyber – five key issues for international cooperation”, speech, 10 May.

Clough, J. (2015). Principles of cybercrime (2nd ed.). Cambridge: Cambridge University Press.

Coeure, B. (2019). “Cyber resilience as a global public good”, speech, 10 May 2019.

Credit Card Fraud: Awareness and prevention, Journal of Financial Crime, 15 (4), pp 398-410.

Cressey, D.R. (1973). Other Peoples’ Money: A study in the social psychology of embezzlement. Glencoe: Free Press

Domingues V. (2018). Finance and Cyber-security Risk Management. Research Dissertation

Dubey. D. R and Manna. A. (2014). E-banking Frauds and Fraud Risk Management. Tactful Management Research Journal. Vol 1(2)

Financial Services Information Sharing and Analysis Centre (FS-ISAC) (2020). “COVID-19 effects on cyber security survey”.

IAIS (2018) Draft Application Paper on Supervision of Insurer Cyber ¬security.

IMF WP/2018/143, Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment

Ionescu, L. Mirea, V. & Blajan, A. (2011). Fraud, corruption and cybercrime in a global digital network. Economics, Management and Financial Markets, 6(2), 373-380.

Kaffenberger L, Kopp E., and Wilson C. (2017). Cyber risk, market failures, and financial stability. 17-185. International Monetary Fund.

Kante S. (2017). Prevention of Cyber Crimes and Fraud Management.

Kashyap A.K, Wetherilt A. (2019). Some principles for regulating cyber risk. In AEA Papers and Proceedings, 109. pp482–87.

Mohottige G, Sujeewa M, Shukri M, Yajid A, Khatibi A, Azam S. M. F and Dharmaratne (2018). The New Fraud Triangle theory - Integrating ethical values of employees. International Journal of Business, Economics and Law, 16(5), pp304-355

Mugari I., Gona S., Maunga M and Chiyambiro R. (2016). Cybercrime - The Emerging Threat to the Financial Services Sector in Zimbabwe. Mediterranean Journal of Social Sciences. Vol 7 No 3 S1

Mwabu D.K. (2013). Factors influencing electronic fraud in the banking industry in Kenya: A case of Kenya Commercial Bank Central Region. Masters Dissertation. University of Nairobi, Kenya

Njanike, K., Dube T. and Mashanyanye E. (2009), The Effectiveness of Forensic Auditing in Detecting, Investigating and Preventing Bank Frauds, Journal of Sustainable Development in Africa, Vol. 10 No. 4, pp. 405-425

Oesterreichische National bank (OeNB) in cooperation with the Financial Market Authority (FMA) December, 2004 credit approval process and credit risk management

Prabowo, H.Y. (2011), Building our defense against credit card fraud: a strategic view, Journal of Money Laundering Control, Vol. 14 No. 4, pp. 371-386.

Raghavana, A.R., Parthiban, L. (2014). The effect of cybercrime on a Bank’s finances, International Journal of Current Research & Academic Review, 2(2), pp. 173-178.

Usman, A.K. and Shah M.H. (2013), Critical Success Factors for Preventing e-Banking Fraud, Journal of Internet Banking and Commerce, 18(2), pp25-39

Webster, J. & Drew, J.M. (2017). Policing advance fee fraud (AFF): Experiences of fraud detectives using a victim-focused approach. International Journal of Police Science and Management, 19(1), pp39-53.

Williams, D.A. (2007), Credit Card Fraud in Trinidad and Tobago, Journal of Financial Crime, 14(3), pp225-215.

Zakrzewski A., Tañg T., Appel G., Fages R., Hardie A., Hildebrandt N., Kahlich M., Meñde M., Muxí F. and Xavier A. (2019). “Global Wealth 2019: Reigniting Radical Growth”, Boston Consulting Group, 20 June.

ISSN: 2344-1321 (online)