The role of self-control on fraud prevention (extending theory of planned behavior)

Abstract

Recently, Village Credit Institutions (LPDs) have experienced high levels of fraud that may reduce public trust in receiving income from third-party funds and providing loans. The existence of fraud cases has made it difficult for some LPDs to maintain their sustainability due to fraud, which is mainly committed by LPD management personnel. Therefore, it makes research related to fraud in LPDs interesting to study. This study aimed to analyze the factors that cause fraud in LPDs. This study uses the theory of planned behavior (TPB) components, namely attitudes toward fraud behavior, subjective norms of fraud behavior, and perceived control over fraud behavior, to predict the intention to commit fraud. Then, this study also added self-control theory and combined it with the concept of sad ripu to complete the TPB components in predicting fraudulent behavior intentions. The research location is all LPD operating in Bali, with a total of 354 respondents consisting of LPD executives. Data collection was done by distributing questionnaires directly. The analytical tool used in this research is hierarchical regression analysis. The results found that attitudes towards fraudulent behavior, subjective norms of fraudulent behavior, and perceived behavioral control over fraudulent behavior positively affect the intention to commit fraudulent behavior. At the same time, self-control negatively influences the intention to fraudulent behavior. These results are expected to expand knowledge, add references, and provide additional information to LPDs, local governments, and the community about fraud prevention in LPDs