Predicting bankers’ fraudulent behavior using fraud star theory

Mohammad Tamzid Hossain, Md Asaduzzaman, Rehnuma Jahan, Anwar Hossain and Ishtiaq Mainuddin

Journal of Financial Crime, 2025, vol. 33, issue 1-2, 19-36

Abstract: PurposeThis study aims to examine factors influencing the fraudulent intention among bankers in Bangladesh through the lens of fraud star theory.Design/methodology/approachTo attain the objectives of this empirical study, 397 usable responses were collected from the Bangladeshi Bankers through the structured questionnaire survey. This study used the partial least squares structural equation modeling to infer the hypothetical relations.FindingsThe findings revealed that six of the seven fraud star dimensions, i.e. the incentive, opportunity, rationalization, internal scope, external scope and organizational culture, have a positive effect on the intention of the bankers toward fraud. The dimension of capacity, however, showed no significant effect.Research limitations/implicationsTheoretically, this research helps advance the study of fraud by offering one of the first attempts to empirically validate the fraud star model in an emerging economy. In practice, the research findings necessitate the need to enhance internal auditing, external supervision and the development of ethical organizational cultures as methods to prevent malpractice in the Bangladesh banking system.Originality/valueTo the best of the authors’ knowledge, the work is one of the first to provide empirical validation of the fraud star theory, which gives a comprehensive, multidimensional perspective that incorporates personal, business and societal aspects of fraud.

Keywords: Bangladesh; Fraud star model; Fraud; Behavior; Bankers (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-09-2025-0292

DOI: 10.1108/JFC-09-2025-0292

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