Combatting Online Fraud in Saudi Arabia Using General Deterrence Theory (GDT)

Online fraud, described as dubious business transactions and deceit carried out electronically, has reached an alarming rate worldwide and has become a major challenge to organizations and governments. In the Gulf region, particularly Saudi Arabia, where there is high Internet penetration and many online financial transactions, the need to put effective measures to deter, prevent and detect online fraud, has become imperative. This paper examines how online fraud control measures in financial institutions in Saudi Arabia are organized and managed. Through qualitative interviews with experts in Saudi Arabia, the study found that people’s perceptions (from their moral, social, cultural and religious backgrounds) have significant effect on awareness and fraud prevention and detection. It also argues that technological measures alone may not be adequate. Deterrence, prevention, detection and remedy activities, together making General Deterrence Theory (GDT) as an approach for systematically and effectively combatting online fraud in Saudi.