Implementing Situational Crime Prevention Theory in the Matter of Financial fraudulent

Nanang Shonhadji; Laila Saleh Marta; Ali Soebijanto; Febrina Ayu

doi:10.14414/jebav.v27i2.4651

Authors

Nanang Shonhadji Universitas Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Laila Saleh Marta University of Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Ali Soebijanto University of Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Febrina Ayu Universitas Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia

DOI:

https://doi.org/10.14414/jebav.v27i2.4651

Keywords:

Employee tenure, Less benefit, High risk, Narrow opportunity, Financial fraudulent, Situational crime prevention

Abstract

Fraud and financial crime continue to pose significant challenges for private companies, making prevention efforts essential through the identification of their root causes. This study examines the relationship between situational crime prevention and financial fraud, with a focus on employee tenure as a moderating variable. An empirical research method was employed, with data collected from employees of PT Budi Jaya and its subsidiaries through questionnaires. A total of 60 valid responses were analyzed using WarpPLS. The findings reveal that situational crime prevention—measured through indicators such as minimal benefits, high risks, limited opportunities, and strict sanctions—has a significant negative impact on financial fraud. Additionally, the study demonstrates that employee tenure moderates the relationship between situational crime prevention measures and financial fraud. This research makes a theoretical contribution to situational crime prevention theory by incorporating the concept of rationalization, which fraud perpetrators often use to justify their actions. The study offers practical insights, suggesting that companies and regulators should implement robust internal control systems to minimize opportunities for fraud and establish clear, stringent rules and sanctions to deter fraudulent behavior.

Author Biographies

Nanang Shonhadji, Universitas Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Nanang Shonhadji is a fraud accounting professor in the Faculty of Economics and Business at
the Universitas Hayam Wuruk Perbanas, Surabaya, Indonesia. He earned a Bachelor of
Accounting (2001) from Airlangga University, Master Accounting 2004 from Magister Accounting
Program Airlangga University and Doctor in Accounting Science (2015) from Brawijaya University.
His current research mainly focuses on fraud accounting in private or non private enterprise. He
has published in any reputable international journal and acredited national journal see at link:
https://sinta.kemdikbud.go.id/authors/profile/6004663. Author’s contact detail: Faculty of
Economics and Business; Universitas Hayam Wuruk Perbanas; Jl. Wonorejo Utara 16, Rungkut,
Surabaya, Indonesia; +6285655250978; nanang@perbanas.ac.id
Laila Saleh Marta, University of Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Laela Saleh is assistant professor in the Faculty of Economics and Business at the Universitas
Hayam Wuruk Perbanas, Surabaya, Indonesia. She earned a Bachelor of Psychology,
Universitas Airlangga (1996), Master of Engineering Management, Institut Teknologi Sepuluh
November (2006) and Doctoral, Universitas Airlangga (2023). She has published in any reputable
international journal and acredited national journal see at link:
https://sinta.kemdikbud.go.id/authors/profile/5999383. Author’s contact detail: Faculty of
Economics and Business; Universitas Hayam Wuruk Perbanas; Jl. Wonorejo Utara 16, Rungkut,
Surabaya, Indonesia; +6287854954525; laila@perbanas.ac.id
Ali Soebijanto, University of Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Ali Soebijanto is Practitioner Lecturer in banking and commercial law, he was supervisor and
middle manager in Bank Duta. Author’s contact detail: Faculty of Economics and Business;
Universitas Hayam Wuruk Perbanas; Jl. Wonorejo Utara 16, Rungkut, Surabaya, Indonesia;
+6281331815412; ali@perbanas.ac.id
Febrina Ayu, Universitas Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia
Febrina Ayu is accounting student in the Faculty of Economics and Business at the Universitas
Hayam Wuruk Perbanas, Surabaya, Indonesia. She can contact: +6281259775015

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