Home⇛Business Research Journal⇛vol. 9 no. 1 (2023)

Fraud Awareness And Attitudes Towards Online Banking:Perceived Risk As Mediator

Monique Arna M. David | Frances Sharey R. Odeste

 

Abstract:

Online banking provides users with various services, which can be easily done within 24 hours or whenever the user wishes. As online banking increased, online banking fraud became a threat to both the bank and its users. This study aims to determine the fraud awareness and attitudes of customers towards online banking: perceived risk as a mediator. Questionnaires were distributed to 510 online banking users residing in Ilocos Norte, utilizing banks with accessible online banking within the area. The data were analyzed using the multiple linear regression and undertaken using WarpPLS – SEM Version: 8.0. Based on the findings for customers’ awareness towards online banking fraud in terms of guidelines given by banks, customers are highly aware that banks have security centers, and that banks inform their users to update their accounts if there are unnecessary emails or any concerns relating to their accounts. Aside from this, identity theft, phishing, and smishing are the most recognized types of online banking fraud. As for the attitudes of customers in terms of usage, the customers agreed that they often transfer funds and pay bills using online banking. Checking the accounts’ transaction history regularly for security concerns is highlighted as strongly agreed. Meanwhile, with regards to perceived risk of online banking, it is shown that failed and pending transactions because of internet connection and system failures are strongly agreed upon. Hence, the results shows that perceived risk does not mediate the positive results between awareness and attitudes of customers towards online banking fraud. Therefore, the researchers suggested that the banks should enhance their ways of disseminating information and intensive seminars, and update their guidelines and website features to ensure that their users have knowledge, are careful, and are aware x of the possible events that may happen while using online banking.



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