Dynamic of Employee Fraud: The Theory Used and How to Commit Fraud in Microfinance Institution and Rural Banks, Future Research in Indonesia (A Systematic Literature Review)

Abstract

The issue of fraud in rural banks in Indonesia has become increasingly widespread in the last decade. This may occur due to the rural banks own efforts to maintain its market position because it has to compete with commercial banks and other institutions or the behavior of employees who take advantage of these conditions. This study has two objectives, the first is to find out the theoretical approach used to analyze fraud in rural banks and the second is to find out research gaps about fraud that can be developed in rural banks in Indonesia. The method in this study uses a systematic review of article documents published in the Scopus database accessed through https://www.lib.unair.ac.id/eResources/ with data ranging from 2010-2023 and found as many as 25 articles related to fraud in rural banks including microfinance institutions. Furthermore, the articles were sorted using the PRISMA method, then the final results were in the form of articles that fit the research objectives which would be analyzed systematicallyThe results found that only 8 articles discussed fraud in microfinance institutions and rural banks. Most of the articles discuss risk management from a credit perspective, including the identification of employee fraud. Only a few articles use the fraud diamond theory to analyze fraud behavior in rural banks or microfinance institutions. So it needs to be further explored using the fraud diamond theory to identify fraudulent behavior in rural banks and of course it would be better if it was combined with other theories to find something new.