Employee engagement, internal audit, security controls and electronic fraud management at Stanbic Bank Uganda Ltd

Abstract

The study examined the effect of employee engagement, internal audit, security controls on electronic fraud management at Stanbic Bank Uganda Ltd. The study focused on assessing the effect of employee engagement on electronic fraud at Stanbic Bank Uganda, evaluating the effect of internal audit on electronic fraud management at Stanbic Bank Uganda and investigating the effect of security controls on electronic fraud management at Stanbic Bank Uganda. The study adopted the Deterrence theory and the Fraud Triangle theory to explain and predict the electronic fraud management in commercial banks. To achieve these objectives, the study employed a cross-sectional and correlational survey research design with a quantitative approach that entailed the collection of numerical data from 179 staff, selected from a sample of 201, through the administration of a survey questionnaire. Data was analysed using the statistical package for social science (SPSS Version 27). The study revealed that job autonomy (B =- 0.323 p <.001), has a negative effect on electronic fraud management, internal audit competence (B = 0.28, p <.001), internal audit effectiveness (B = 0.422, p <.001), and administrative controls (B = 0.240, p <.001), have positive effect on electronic fraud management at Stanbic bank Uganda. Therefore, study recommends, that commercial banks’ balance job autonomy with clear guidelines to minimize electronic fraud risk. Employees should receive fraud awareness training, foster collaboration, implement robust monitoring systems, establish a whistleblower mechanism, conduct regular risk assessments, and promote continuous learning. Cybersecurity and operational risk modelling can help identify and mitigate risks. Strengthening internal audit competency, investing in continuous training, and promoting forensic auditing techniques can enhance effectiveness. A robust performance measurement process and monitoring customer service are also recommended. Implementing clear policies, strict access controls, training, incident response plans, and collaboration with IT and legal teams can strengthen defence against electronic fraud and reduce fraudulent activities. This study will be important to commercial banks, Financial Intelligence Authority and Bank of Uganda.