Examining the effectiveness of fraud detection and prevention in microfinance institutions. A case study of Financial Charter Microfinance
- Author
- Petty Dube
- Title
- Examining the effectiveness of fraud detection and prevention in microfinance institutions. A case study of Financial Charter Microfinance
- Abstract
- The main objective of this study was to examine the effectiveness of fraud detection and prevention in microfinance institutions using a case of Financial Charter Microfinance. The study employed a qualitative research design to study using a population of 54 respondents from Financial Charter Microfinance. The researcher chose purposively a small sample size of 38 respondents from which the answers to the research objective were drawn. The study utilized the questionnaire and interviews as the research instruments in addressing questions seeking to answer the research problem. The data in the study was collected through administering questionnaires from 30 respondents and interviews from 8 respondents. The study data was analyzed using thematic analysis. The tables, graphs and charts were produced by SPSS. The findings of the research revealed that the types of fraudulent activities in Financial Charter Microfinance include manipulation of accounting systems, forgery, dual payments, fuel embezzlement, failure to account for receipted funds as well as failure to receipt used funds. This was due to weak internal controls, incompetent staff and poor accounting systems at the institution. Fraud detection and prevention was found to be effective in ensuring reliability, accuracy, security, timeless and compatibility. The study recommended training and development, close audits, use of automated accounting systems, and use of computers to store crucial information as strategies that can be initiated to improve fraud detection and prevention in Financial Charter Microfinance. Overall, fraud detection and prevention was found to be effective in Microfinance institutions.
- Date
- August 2021
- Publisher
- BUSE
- Keywords
- Financial Charter Microfinance
- Fraud Detection
- Supervisor
- N/A
- Media
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