Ethical Foundations and Fraud Prevention: A Study on the Role of Morality and Integrity in Indonesia's Islamic Banking Sector

This study examines the morality and integrity of employees in the Islamic banking industry on fraud prevention. The analytical method used in this study is PLS-SEM (Partial Least Square Structural Equation Modeling). The key insight gleaned from this study is the significant impact of strong ethical foundations, rooted in principles of morality and integrity, in mitigating the occurrence of fraud within the Islamic banking industry. Consequently, the findings of this research hold substantial implications, serving as a valuable set of recommendations aimed at assisting Islamic Commercial Banks operating in Indonesia to fortify their anti-fraud measures. By recognizing and fostering ethical conduct among their employees, these banks can establish a more resilient defense against fraudulent activities, ultimately safeguarding their operations and preserving the trust of their customers and stakeholders.