Rural banks fraud: a story from Indonesia

The purpose of this paper is to highlight the causes of fraud in rural banks in Indonesia and provide recommendations to reduce these financial crimes.,This paper is desk research using secondary data from research reports, journal articles, magazine articles and online news related to fraud cases in rural banks. The Fraud Diamond approach is applied to analyze the problems.,Financial and non-financial pressures, opportunities that are open because of weak oversight and governance, justification of fraud and the capability of perpetrators are the factors that cause bank fraud. Opportunity is the most significant contributor to fraud.,The novelty of this paper is that it discusses the causes of fraud in rural banks. Management and authority can learn from this case.

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