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Fraud Detection and Electronic Banking Essay

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NATIONAL OPEN UNIVERSITY OF NIGERIA COURSE CODE :MBA 754 COURSE TITLE: FRAUD DETECTION AND ELECTRONIC BANKING MBA 754 COURSE GUIDE COURSE GUIDE MBA 754 FRAUD DETECTION AND ELECTRONIC BANKING Course Developer/Writer Programme Leader Gerald C. Okereke National Open University of Nigeria Dr. O. J. Onwe National Open University of Nigeria Abdullahi . S. Araga National Open University of Nigeria Course Coordinator NATIONAL OPEN UNIVERSITY OF NIGERIA ii MBA 754

COURSE GUIDE National Open University of Nigeria Headquaters 14/16 Ahmadu Bello Way Victoria Island Lagos Abuja Office No 5 Dar es Salam Street Off Aminu Kano Crescent Wuse II, Abuja Nigeria. e-mail: [email protected] edu. ng URL: www. nou. edu. ng Published by National Open University of Nigeria Printed 2009 ISBN: 978-059-619-9 All Rights Reserved iii MBA 754 COURSE GUIDE CONTENTS PAGE 1 1 2 2 Course Aims………………………………………………………. Course Objectives……………………………………………. …. Study Units………………………………………………………… Assessment …………………………………………….. ………. ….. iv MBA 754 COURSE GUIDE Course Aims This course is designed to acquaint students, information technology managers and financial managers of interplay between fraud and electronic banking. It is aimed at extensive examination of the forms of electronic fraud that plague financial transactions, and in so doing explore ways to dealing with electronic fraud.

The nature and forms of electronic banking is also examined with the intension to compare and contrast forms of electronic banking. Through a thorough x-ray of how to deal with electronic fraud schemes, we inspire confidence in would be electronic fund managers and investors to engage in electronic banking transactions. Course Objectives At the end of this course you should be able to: • • • • • • • • • • • • • • • • • • •

Explain electronic banking and the relationship it has with ecommerce Thoroughly explain the services offered customers in e-banking transactions Answer the question of the challenges facing forms of e-banking Give an account of the characteristics of Internet banking Explain Internet fraud and its origin Explain how to identify some the Internet fraud schemes Define advance fee fraud and explain its origin Answer the question of how 419 is implemented Differentiate advance fee fraud from credit card and Forex frauds Identify some agency warnings that concern Forex business Enumerate the steps in strategic fraud detection Explain the different types of electronic fraud detection techniques Identify future trends in the development of electronic fraud detection techniques Explain the preliminary procedure of conducting an electronic/Internet banking audit Show how to deal with legal and regulatory matters in the Internet auditing process.

State the types of risks associated with computerised electronic banking system Identify areas in which computerisation in electronic banking can lead to detection and prevention of fraud Explain what biometrics is and why biometrics is deployed in fraud detection and prevention schemes State the issues and challenges facing biometrics and its applications in fraud prevention and detection 1 MBA 754 COURSE GUIDE • Explain how some governments and organisations have also used artificial intelligence and biometrics to check fraud • Answer the question of risk factors associated with fraud schemes • Expressly state how to deal with fraud in organisations. Study Units

The study units of this course are: Module 1 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Module 2 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Module 3 Unit 1 Unit 2 Unit 3 Unit 4 Risks and Security in Electronic Banking Introduction to Biometrics Application of Biometrics and Artificial Intelligence (AI) in Electronic Fraud Detection Identifying and Responding to Electronic Fraud Risks: The Case of Australia Electronic Fraud (3) Credit Card Fraud and Forex Scam Strategic Fraud Detection Electronic Fraud Detection Techniques Control and Auditing Of Information System Guidelines For Electronic/Internet Banking Audit Program Introduction to Electronic Banking Introduction to E-Banking (2): Types of Electronic Banking Information Systems Auditing For Internet Banking Electronic Fraud (1) Internet Fraud Electronic Fraud (2) Advance Fee Fraud Assessment The assignments represent 30% of the marks obtainable. Examination constitutes 70% of the marks obtainable. 2