Cybercrime: an emerging threat to the banking sector of Pakistan

Journal of Financial Crime, Volume 26, Issue 1, Page 50-60, January 2019.
Purpose The purpose of this study is to gain more insight into the impact of cybercrime incidents in the banking sector of Pakistan. This study investigates the significant contribution of information security awareness on the relationship of cybercrimes and organizational performance. Design/methodology/approach The impact of cybercrime incidents on organizational performance is investigated by further exploring the moderating effects of information security awareness. A sample of 302 employees in the banking industry of Pakistan was studied by using survey design. Findings Cybercrime incidents have negative impact on organizational performance, but information security awareness weakens the negative impact of cybercrimes on organizational performance. Research limitations/implications The present study focuses on the banking sector so its finding cannot be generalized in other sectors. Further, in-depth comparative studies in other sectors with different cultural settings will help to authenticate the research findings. Practical implications Information security awareness weakens the negative impact of cybercrimes on organizational performance; therefore, it is important for banks’ HR managers to set up more security training courses to increase employees’ awareness on cybercrimes. Originality/value This study explores the impact of cybercrimes on banks’ performance with the moderating role of employees’ information security awareness. Linking these topics has created a new study within the cybercrimes discipline. The present study also enhances the understanding of employees’ role to combat the impact of cybercrimes on organizational performance.