Effectively managing internet fraud risk : a comparative analysis of banks and gaming companies in Malta

Abstract

Throughout the years, cybercrime has been a growing concern in today’s financial news. This dissertation discusses whether both banks and gaming companies have sufficient resources to effectively manage the risk of internet fraud. The management of internet fraud risk involves a number of steps, which include ensuring that the right processes and systems are in place to identify fraudulent activity as well as identifying the tools needed for the reduction of internet fraud cases within a company. In this study, individuals who are knowledgeable in the area and work within the banking and gaming industry, were given a survey to answer. The purpose of such surveys was to get a first-hand view of what banks and gaming companies in Malta experience when dealing with internet fraud, and also to get a better understanding of the tools and precautions taken in order to manage this risk. The survey was also a means of determining which industry was more prone to being victimised by cyber fraud, and which of the two had the most sophisticated security system and cyber risk plan in place. Subjects discussed in this study include the precautionary measures that companies take in order to manage internet fraud, as well as the steps required to respond to such attacks. This study also focuses on the pressures associated with the funding of cyber fraud. The results indicate that neither industry possesses a foolproof system with regards to managing online fraud, as each industry was victimized by such fraud within the past year. Nonetheless, the findings from the feedback of the survey’s respondents signified that the banking industry seemed to have a more robust system in place with regards to internet fraud risk management.