The Dark Psychology of Bank Fraud: A Psychopathology Perspective

Akeem A. Kenku, Jerry James Doka, Yunana Ulea Salihu

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Abstract

Bank fraud remains a pervasive issue in financial institutions, with perpetrators often displaying distinct psychological traits and cognitive distortions that enable deceptive practices. This review paper examines the dark psychology of bank fraud, focusing on the psychopathological characteristics of fraud perpetrators. Using a psychopathological perspective, the study explores personality disorders, cognitive biases, and emotional detachment as core factors influencing fraudulent behaviour. The paper also investigates how organizational culture, workplace dynamics, and systemic loopholes contribute to financial fraud. A qualitative research approach is employed, utilizing secondary data sources such as peer-reviewed journals, books, financial crime reports, forensic psychology studies, and regulatory documents from institutions. Thematic content analysis is used to identify recurring psychological and organizational patterns associated with bank fraud. Findings reveal that many fraud perpetrators exhibit antisocial tendencies, impulsivity, and a lack of moral restraint, allowing them to manipulate financial systems. Additionally, toxic workplace cultures, weak ethical climates, and inadequate internal controls create enabling environments for fraud to thrive. The study emphasizes the need for financial institutions to implement stricter ethical oversight, psychological risk assessments, and fraud detection mechanisms to mitigate fraudulent activities. Keywords: Bank fraud, dark psychology, psychopathology, financial crime, forensic psychology

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