A conceptual framework of e-fraud control in an integrated supply chain

The integration of supply chains offers many benefits; yet, it may also render organisations more vulnerable to electronic fraud (e-fraud). E-fraud can drain on organisations’ financial resources, and can have a significant adverse effect on the ability to achieve their strategic objectives. Therefore, efraud control should be part of corporate board-level due diligence, and should be integrated into organisations’ practices and business plans. Management is responsible for taking into consideration the relevant cultural, strategic and implementation elements that inter-relate with each other and to coordinating the human, technological and financial resources necessary to designing and implementing policies and procedures for controlling e-fraud. Due to the characteristics of integrated supply chains, a move from the traditional vertical approach to a systemic, horizontal-vertical approach is necessary. Although the e-fraud risk cannot be eliminated, risk mitigation policies and processes tailored to an organisation’s particular vulnerabilities can significantly reduce the risk and may even preclude certain classes of frauds. In this paper, a conceptual framework of e-fraud control in an integrated supply chain is proposed. The proposed conceptual framework can help managers and practitioners better understand the issues and plan the activities involved in a systemic, horizontal-vertical approach to e-fraud control in an integrated supply chain, and can be a basis upon which empirical studies can be build.