The Impact of Digitalization on Reducing Fraud in Jordanian Commercial Banks

Abstract

This study aimed to identify the impact of digitization in its dimensions (monitoring and detection, machine learning, biometric authentication, secure payment system, and secure document verification) in reducing fraud in Jordanian commercial banks. To achieve the objectives of the study, the descriptive analytical approach was used, as the study community consisted of Jordanian commercial banks, which number (12) banks. The study sample included accounting department managers, accountants, and financial programmers; (192) questionnaires were distributed to the participants and (151) questionnaires were retrieved, all of which were valid for statistical analysis. The SPSS software was used to analyze the data. The results showed that there is a statistically significant effect of digitization in its dimensions (monitoring and detection, machine learning, biometric authentication, secure payment system, and secure document verification) in reducing fraud in Jordanian commercial banks, and that there is an increase in the level of digitization application as well as reducing fraud in Jordanian commercial banks. The study recommended the need to increase human capital because it is an urgent necessity to enhance digitization development efforts in financial institutions. Regardless of advanced technologies, human competencies remain the basic element in achieving success in this field.