INTERNET OF THINGS (IOT) AND BLOCKCHAIN ​​ANALYSIS IN REDUCING FRAUD RISK IN BANKING INDUSTRY PURWOKERTO: TRIANGLE OF FRAUD PERSPECTIVE

Abstract

The global banking industry faces significant challenges related to transaction security and the increasing risk of fraud and data theft. This study aims to analyze the role of the Internet of Things (IoT) and blockchain in reducing fraud risk within the banking industry in Purwokerto, utilizing the Triangle of Fraud perspective encompassing pressure, opportunity, and rationalization. Employing a quantitative approach with a survey method, data was collected from operational employees and system operators across five banks in Purwokerto exploring or implementing IoT and blockchain technology, with purposive sampling. This research is grounded in the Technology Acceptance Model (TAM). The findings are expected to demonstrate how IoT enhances transaction security and personalized services, while blockchain contributes to real-time transactions, transparency, smart contracts, and secure identity management, thereby optimizing fraud prevention. This study provides theoretical contributions to financial technology development and practical guidance for banking institutions in developing effective fraud and data theft prevention strategies.