Enhancing Fraud Detection Through Integration of Forensic Accounting Techniques and Cyber-Security in Financial Institutions in Kenya

Abstract

The rapid rise in Internet banking and mobile banking transactions has led to a new challenge facing the banking sector through cybersecurity threats. Forensic accountants' understanding of cyber security is key to winning the fight against fraud. This study sought to evaluate the effect of integrating cybersecurity into Forensic accounting on the detection of Fraud in the financial sector in Kenya. The study is anchored on Unified Technology Acceptance and Use Theory (UTAUT) and uses panel data collected on the number of cybersecurity advisories, the reported number of cyberattacks, and the percentage of fraud detections by four Forensic Accounting Techniques. The study findings showed that there was a strong positive correlation between cyber security and fraud detection and integration of cyber security and forensic accounting enhanced fraud detection. The study concluded that the integration of cybersecurity and forensic accounting enhanced fraud detection and contributed positively to financial performance. The study recommended that cyber security skills be integrated into forensic accounting training to enhance fraud detection among forensic accountants to enhance fraud detection.

Keywords: Fraud Detection; Cyber Security; Forensic Accounting Techniques

DOI: 10.7176/EJBM/16-5-03

Publication date: June 30th 2024