International Journal of Accounting and Management Sciences (IJAMS)
IJAMS Vol.4 No.4 October 2025
DOI https://www.doi.org/10.56830/IJAMS10202507
Authors
Anjali Kale
Sundaranarayanan Viswanathan
Abstract
The global banking business has been forced to face an exponential rise in frauds over the last ten years, which was largely because of the speed at which the financial services start becoming digitalized as well as the expansion of cybercriminal networks and the fact that the governance, compliance, and legacy infrastructure remained to be weak.
A 2023 report from Aite-Novarica Group further found that fraud-related losses at financial institutions internationally increased by 21 percent between 2018 and 2023, with the report pointing to growth in account takeovers, synthetic identity fraud, and insider collusion many of which could take advantage of the interoperability gaps in legacy systems, splintered cross-jurisdictional regulations (Aite-Novarica Group, 2023).
The current paper takes a critical look at the emerging global scene of the banking fraud through the above-mentioned four perspectives, interconnected in some way, due to technological innovation, regulation governance, managerial responsibility, and behavioural economics.
It provides a typology systematization of the fraud scheme and evaluates the tactics that are applied by fraudsters of their operations, as well as assesses regulative regimes, like the PSD2 of the EU, the Bank Secrecy Act of the U.S., and the digital banking compliance regimes of Asia Pacific.
Other defensive measures that the study examines are biometric authentication, anomaly detection using artificial intelligence, behavioural biometrics, blockchain-based audit events, and real-time transaction risk scoring.
Based on empirical case reports in the Asia-Pacific (APAC), Europe, the Middle East and Africa (EMEA), and the Americas, the paper deploys the identification of the common trends in cross-border money laundering, trade-based financial fraud, and misuse of the correspondent banking relationships.
The examples highlight vulnerabilities of systems in terms of ineffective Know Your Customer (KYC) enforcement to a lack of transparency in trade finance products that enable layering funds of criminal origin in global banking systems.
The proposal of the paper is a risk-based mitigation framework with five primary pillars as robust governance and risk oversight; artificial intelligence-based fraud detection and response systems; multi-factor and adaptive customer authentication procedures; real-time monitoring of transactions with regulatory intelligence; and a cross-functional incident response strategy combining internal audit, cyber security, and regulatory compliance teams.
The paper combines the relevance of the academic literature, white papers of the industry, and regulatory guidance to identify the glaring gaps in current strategies namely the lack of exploitation of behavioural analytics and regulatory harmonization across borders.
It will have value to new strategies by the senior managers, regulatory bodies, and the design of public policy because of the dynamic threats of frauds in financial systems. Mapping the historical shifts in the face of fraud, check kiting, phishing, and date fabrication through the deep-fake and the mule network and adversarial adversarial dependencies, cross-technological challenges, and geopolitical realities define a framework that the future response might embrace.
Keywords: Banking frauds, financial crime, cybersecurity, international banking, fraud prevention, risk management, top management, compliance
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