The research has been conducted to apply the most fundamental concept of
fraud triangle theory, introduced by Donald Cressey's in 1950-53, to private
and public commercial banks of Sindh, Pakistan. According to this theory, Donald Cressey
identified that when three-component/factor i-e pressure, opportunity, and rationalization,
comes into an individual's life, he is very likely to commit fraud. Eight different hypotheses are
drawn for this study to test the elements of the fraud triangle in public and private sector banks.
The study adopted a primary source of data collection, with a sample size of 600 distributed to
respondents of the two largest bank of Pakistan, i-e, the National Bank of Pakistan and Habib
Bank Limited. The statistical Mann-Whitney U-Test applied to test the hypotheses. The results
of the study disclosed that the employees in public sector banks in Sindh, facing more financial
pressure, the internal control of public banks is also week; hence fraudsters find more
opportunities to commit fraud and the employees working in public banks also behave
rationalization for their illicit activities.
1-Vivek Anand Assistant Professor, Isra University Hyderabad, Sindh, Pakistan.2-Muhammad Qasim Nizamani Assistant Professor, Department of Media & Communication Studies, University of Sindh, Jamshoro, Sindh, Pakistan. 3-Farheen Qasim Nizamani Assistant Professor, Department of Media & Communication Studies, University of Sindh, Jamshoro, Sindh, Pakistan.
Fraud Triangle Theory, Public and Private Commercial Banks, Sindh, Pakistan