Blockchain Applications in Occupational Fraud Prevention: A Structured Literature Review

Praise Mutoko; Monde Faku

doi:10.37075/FABA.2026.1.06

Authors

Praise Mutoko Tshwane University of Technology, Pretoria, South Africa https://orcid.org/0009-0007-3596-1222
Ephraim Monde Faku Tshwane University of Technology, Soshanguve, South Africa https://orcid.org/0000-0002-8091-6216

DOI:

https://doi.org/10.37075/FABA.2026.1.06

Keywords:

Occupational Fraud, audit effectiveness, financial technology, blockchain, financial performance

Abstract

Purpose: The purpose of this study is to examine how blockchain technology can mitigate occupational fraud in financial service enterprises within emerging markets, with a particular focus on mid-sized institutions in South Africa.

Design/Methodology/Approach: A systematic literature review was conducted using Scopus and ScienceDirect databases. Peer-reviewed articles published between 2016 and 2025 were selected through predefined inclusion and exclusion criteria. The review followed PRISMA 2020 guidelines, and thematic analysis was applied to synthesise findings from 36 studies.

Findings: The review revealed that weak internal controls continue to drive occupational fraud, especially corruption, asset misappropriation, and financial statement fraud. Blockchain offers advantages such as real-time auditability and improved transaction traceability. However, regulatory uncertainty, integration costs, and heightened cybersecurity requirements remain barriers to widespread adoption.

Practical Implications: The findings suggest that blockchain can complement existing fraud risk management systems by enhancing organisational transparency, accountability, and operational resilience. Financial service providers in emerging markets can benefit from integrating blockchain within context-specific regulatory and technological frameworks.

Originality/Value: This study contributes to the growing body of knowledge on blockchain and fraud prevention by focusing on its applicability to financial institutions in emerging economies. In this context, empirical research remains limited.

Paper Type: Research Paper

Downloads

Download data is not yet available.

References

Alagha, B., and I. Özçelik. 2025. Using Blockchain Technology for Audit Trail. In Digital Strategy and Governance in Transformative Technologies, 239–259. Cham: Springer. https://doi.org/10.1201/978100347dangwa7808-14.

Albaroodi, H. A., and M. Anbar. 2025. Security Issues and Weaknesses in Blockchain Cloud Infrastructure: A Review Article. Journal of Applied Data Sciences, 6 (1): 155–177.

Arenas-Parra, M., H. Rico-Pérez, and R. Quiroga-García. 2024. The Emerging Field of Robo-Advisors: A Relational Analysis. Heliyon, 10: e21543. https://doi.org/10.1016/j.heliyon.2024.e35946.

Aracil, E., L. Fernández-Méndez, and F. J. Fuertes. 2025. Trust and Financial Inclusion: A Literature Review with Reference to the Digital Transformation.”Heliyon, 11: e25631. https://doi.org/10.1016/j.heliyon.2025.e44128.

Association of Certified Fraud Examiners (ACFE). 2022. Report to the Nations: 2022 Global Study on Occupational Fraud and Abuse. Austin, TX: ACFE.

Bakar, A. B. S. A., N. A. B. M. Ghazali, and M. B. Ahmad. 2019. Sustainability Reporting and Board Diversity in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(3): 91–99. https://doi.org/10.6007/ijarbss/v9-i2/5663.

Baseri, Y., V. Chouhan, and A. Hafid. 2024. Navigating Quantum Security Risks in Networked Environments. Computers & Security, 132: 103332. https://doi.org/10.1016/j.cose.2024.103883.

Beck, T., and R. Cull. 2014. SME Finance in Africa. Journal of African Economies, 23(5): 583–613. https://doi.org/10.1093/jae/eju016.

Bibi, S., H. Zada, and N. Khan. 2024. Governance, ICT and Financial Inclusion. Heliyon, 10: e19843. https://doi.org/10.1016/j.heliyon.2024.e33711.

Bruwer, J. P., and A. Petersen. 2022. The Perceptions of South African Small, Medium and Micro Enterprise Management on Occupational Fraud Risk, Economic Sustainability and Key Employee Characteristics. Journal of Accounting, Finance and Auditing Studies. https://doi.org/10.32602/jafas.2022.026.

Byeon, H., G. P. Selvi, R. Robert, and S. Agalya. 2025. Blockchain Technology in Financial Services. AIP Conference Proceedings, 3306: 030068. https://doi.org/10.1063/5.0275939.

Chung, T., P. N. Sharma, C. C. Lee, and J. Pinto. 2021. National Culture and Occupational Fraud Magnitude: The Moderating Role of Fraud Type. Journal of Forensic Accounting Research, 6(1): 406–435. https://doi.org/10.2308/jfar-2020-025.

Cosma, S., G. Rimo, and G. Torluccio. 2023. Knowledge Mapping of Model Risk in Banking. International Review of Financial Analysis, 89: 102743. https://doi.org/10.1016/j.irfa.2023.102800.

Cressey, D. R. 1953. Other People’s Money: A Study in the Social Psychology of Embezzlement. Glencoe, IL: Free Press.

Dar, B. I., N. Badwan, and J. Kumar. 2024. FinTech Innovations and Green Finance. International Journal of Islamic and Middle Eastern Finance and Management, 17(4): 1–22. https://doi.org/10.1108/imefm-01-2024-0018.

Darsono, J., A. Hidayat, and S. Nugroho. 2024. Crisis-Driven Fraud Risks. Journal of Financial Crime, 31(1): 88–104.

Ding, W., Y. Huang, and S. Wang. 2024. Regulatory and Privacy Risks in Blockchain Finance. Information Systems Frontiers, 26(2): 421–438.

Fatoki, O. 2014. The Causes of SME Failure in South Africa. Mediterranean Journal of Social Sciences, 5(20): 922–927. https://doi.org/10.5901/mjss.2014.v5n20p922.

Financial Intelligence Centre. 2024. Strategic Analysis Brief: Corruption and Financial Crime Threats in South Africa’s Financial Sector. Pretoria: FIC.

Ghosh, M. 2024. Financial Inclusion Bibliometric Analysis. Sustainable Futures, 6: 100142. https://doi.org/10.1016/j.sftr.2024.100160.

Homer, J. 2020. An Analysis of the Fraud Triangle. Journal of Forensic and Investigative Accounting, 12(2): 89–103.

Hyvärinen, H., M. Risius, and G. Friis. 2017. Blockchain-Based Approach to Public Sector Fraud. Business & Information Systems Engineering, 59(6): 441–456. https://doi.org/10.1007/s12599-017-0502-4.

Indiraswari, S. D., B. Subroto, R. Rosidi, and I. Subekti. 2025. Corporate Governance and Financial Statement Fraud: Evidence on the Moderating Influence of Financial Distress. Problems and Perspectives in Management, 23(2): 785. https://doi.org/10.21511/ppm.23(2).2025.57.

Jannat, S. 2025. Crowdfunding Dilemmas in Bangladesh SMEs. International Journal of Innovation Science, 17(2): 1–18. https://doi.org/10.1108/ijis-03-2024-0066.

Jha, S., and R. C. Dangwal. 2024. FinTech Services and Financial Inclusion. Journal of Science and Technology Policy Management, 15(2): 211–230. https://doi.org/10.1108/jstpm-03-2023-0034.

Khan, A. H. J., and S. A. Ahmad. 2025. IoTBlockFin. Journal of Intelligent Systems and Internet of Things, 14(1): 209–220. https://doi.org/10.54216/jisiot.140116.

Koppeschaar, Z. 2012. IFRS for SMEs. Southern African Journal of Entrepreneurship and Small Business Management, 5(1): 54–68. https://doi.org/10.4102/sajesbm.v5i1.27.

Kroon, N., M. C. Alves, and I. Martins. 2021. Emerging Technologies and Accountants’ Skills. Journal of Open Innovation, 7 (3): 163. https://doi.org/10.3390/joitmc7030163.

Kumar, A., H. Pavana Kumari, P. A. M. Auxilia, and P. O. Bhoir. 2023. Implementation of Blockchain in Finance. In ICACITE 2023 Proceedings, 1102–1106. https://doi.org/10.1109/icacite57410.2023.10182951.

Langaliya, V., and J. A. Gohil. 2021. Smart Contract Applications. International Journal on Recent and Innovation Trends in Computing and Communication, 9(9): 16–26. https://doi.org/10.17762/ijritcc.v9i9.5489.

Liu, L., W.-T. Tsai, M. Z. A. Bhuiyan, H. Peng, and M. Liu. 2022. “Blockchain-Enabled Fraud Discovery.” Future Generation Computer Systems 128: 158–166. https://doi.org/10.1016/j.future.2021.08.023.

Mongwe, A., and D. Malan. 2020. Machine Learning and Fraud Detection in South Africa. South African Journal of Accounting Research, 34(1): 45–68. https://doi.org/10.18489/sacj.v32i1.777.

Mwega, F. M. 2011. Structural Shifts in Kenya’s Financial Institutions. African Development Review, 23(1): 105–123. https://doi.org/10.1111/j.1467-8268.2010.00271.x.

Nair, A. J., and A. S. Rao. 2025. Quantifying the Fiscal Ramifications of Big Data Integration in Service Organisations. In AI and the Revival of Big Data, 239–258. https://doi.org/10.4018/979-8-3693-8472-5.ch011.

Nathan, J., and B. Jacobs. 2020. Blockchain Consortium Networks. Journal of Corporate Accounting and Finance, 31(2): 29–33. https://doi.org/10.1002/jcaf.22428.

National Treasury. 2024. National Money Laundering and Terror Financing Risk Assessment Report: South Africa. Pretoria: Republic of South Africa.

Neves, C., T. Oliveira, and L. Gutman. 2023. Adoption of Digital Financial Services. International Journal of Information Management Data Insights, 3: 100146. https://doi.org/10.1016/j.jjimei.2023.100201.

Ng, A. W., and B. K. B. Kwok. 2017. FinTech and Cybersecurity. Journal of Financial Regulation and Compliance, 25(4): 368–384. https://doi.org/10.1108/jfrc-01-2017-0013.

Nikkel, B. 2020. FinTech Forensics. Forensic Science International: Digital Investigation, 33: 300939. https://doi.org/10.1016/j.fsidi.2020.200908.

Okewale, K., O. Akinhanmi, I. Idowu, O. Jasanya, and O. E. Peter. 2025. Blockchain Efficiency in Financial Security. NIPES Journal of Science and Technology Research, 7(1): 1378–1383. https://doi.org/10.37933/nipes/7.4.2025.si159.

Page, M. J., J. E. McKenzie, P. M. Bossuyt, I. Boutron, T. C. Hoffmann, C. D. Mulrow, and D. Moher. 2021. The PRISMA 2020 Statement. BMJ 372: n71. https://doi.org/10.1016/j.jclinepi.2021.02.003.

Pearce, D., and B. Helms. 2001. Financial Services Associations: The Story So Far. Washington, DC: Consultative Group to Assist the Poorest. https://doi.org/10.1596/12843.

PricewaterhouseCoopers (PwC). 2022. Global Economic Crime and Fraud Survey 2022. London: PwC.

Rajasekaran, A. S., J. Haribabu, G. V. Ramnjaneyulu, T. Sivakumar, A. Mohanarathinam, and T. Velmurugan. 2024. Blockchain-Based Document Verification Scheme for Enhanced Security and Fraud Control. In Proceedings of the International Conference on Emerging Research in Computational Science (ICERCS), 1–5. https://doi.org/10.1109/icercs63125.2024.10895236.

Sarkis-Onofre, R., F. Catalá-López, E. Aromataris, and C. Lockwood. 2021. How to Properly Use the PRISMA Statement. Systematic Reviews, 10(1): 117. https://doi.org/10.1186/s13643-021-01671-z.

Shanikat, M., and M. M. Aldabbas. 2025. Perception of Corporate Governance Factors in Mitigating Financial Statement Fraud in Emerging Markets. Journal of Risk and Financial Management, 18(8): 430. https://doi.org/10.3390/jrfm18080430.

Sen, A. C., P. Kumar, M. J. Dave, A. Kalra, and M. Goyal. 2025. Machine Learning-Driven Anomaly Detection. In Communications in Computer and Information Science, 2382: 143–157. https://doi.org/10.1007/978-3-031-86069-0_12.

Singh, M., K. Srivastava, K. R. P. Vittala, and A. K. Tyagi. 2025. Blockchain in Modern Banking. In Establishing AI Specific Cloud Computing Infrastructure, 331–358. Cham: Springer. https://doi.org/10.4018/979-8-3693-9694-0.ch016.

Singh, S., S. Singh, and T. Kajla. 2023. Checking the Effectiveness of Blockchain Application in Fraud Detection with a Systematic Literature Review Approach. https://doi.org/10.1108/978-1-80455-566-820231003.

Sreenu, N., and S. S. Verma. 2024. Digital Financial Inclusion in India. Transnational Corporations Review, 16(4): 1–20. https://doi.org/10.1016/j.tncr.2024.200091.

Stainbank, L. J. 2010. Due Process in Adopting IFRS for SMEs in South Africa. Meditari Accountancy Research, 18(2): 1–20. https://doi.org/10.1108/10222529201000010.

Tian, X., J. S. He, and M. Han. 2021. “Data-Driven Approaches in FinTech. Information Discovery and Delivery, 49(2): 113–126. https://doi.org/10.1108/idd-06-2020-0062.

Tickner, P., and M. Button. 2021. Deconstructing the Origins of Cressey’s Fraud Triangle.” Journal of Financial Crime, 28(3): 722–731. https://doi.org/10.1108/jfc-10-2020-0204.

Transparency International. 2025. South Africa Country Profile. Berlin: Transparency International.

Trivedi, S. 2023. Blockchain Framework for Insurance. International Journal of Innovation and Technology Management, 20(6): 2350034. https://doi.org/10.1142/s0219877023500347.

Turker, I., and A. A. Bicer. 2020. Blockchain in Auditing and Assurance. In Contributions to Management Science, 457–471. Cham: Springer. https://doi.org/10.1007/978-3-030-29739-8_22.

Vasudevan, A., M. Thayanithi, A. Pandiyarajan, N. Raja, and A. Kumar. 2025. ChequeGuard Framework. International Journal of Interactive Mobile Technologies, 19(14): 108–120. https://doi.org/10.3991/ijim.v19i14.56869.

Wells, J. T. 2017. Corporate Fraud Handbook: Prevention and Detection. 5th ed. Hoboken, NJ: Wiley.

Xiong, W., and D. Wan. 2023. Financial Investment Trust Mechanism Based on Smart Contract. PLOS ONE 18 (7): e0287706. https://doi.org/10.1371/journal.pone.0287706.

Yan, M., R. Filieri, and M. Gorton. 2021. “Continuance Intention of Online Technologies.” International Journal of Information Management, 58: 102296. https://doi.org/10.1016/j.ijinfomgt.2021.102315.

Zarpala, L., and F. Casino. 2021. Blockchain-Based Forensic Model. Digital Finance, 3 (3–4): 301–332. https://doi.org/10.1007/s42521-021-00035-5.

Zhang, J., Q. Wu, and Q. Fan. 2024. Joint Resource Allocation in Federated Edge Learning. Computers, Materials and Continua, 78(1): 1–25. https://doi.org/10.32604/cmc.2024.057006.

Ziorklui, S. Q., C. Nwachukwu, and T. Okafor. 2024. Internal Controls and Fraud Prevention. Journal of Financial Crime, 31(2): 455–472. https://doi.org/10.51594/farj.v6i7.1322