Saudi Arabia Commercial Banking

There are various fraud incidences in banks and they normally vary in nature, characters and
also methods of perpetration. In terms of perpetration, banking fraud are commonly grouped
into external fraud, internal fraud and mixed fraud when both internal and external parties
colluded with each other. This paper talks about the effect of external factors considers on
fraud prevention to examine the directing impact of capacity component of extortion on
external factors and fraud prevention in the Saudi bank system This paper discusses the
impact of external industry factors on fraud prevention with the primary aim to investigate
the moderating effect of capability element of fraud on external industry factors and fraud
prevention in the Saudi Arabian banking sector. Adopting a survey method, the respondents
of this study are bank staff at various administrative levels in the Saudi Arabian banking
sector. Study is expected to indicate that there is a positive relationship between external
industry factors on fraud prevention in the Saudi Arabian banking sector. The aim of the
survey is to determine the cause of frauds and the role that is played by external factors on
preventing and curbing fraud and also the role of capability element in dealing with
fraudulent activities.