E-banking and Cybercrime: Evaluating Relationship in UK Banking

This dissertation investigates the relationship between e-banking and cybercrime within the UK banking industry, focusing on Lloyds Banking Group. It employs both primary data collected from 20 bank employees and secondary data from existing literature, analyzed using SPSS software. The research aims to understand the concept of e-banking and cybercrime, determine the role of e-banking in facilitating cybercrime, and examine the benefits of overcoming cybercrime. Findings reveal a strong association between the rise of e-banking and the increase in cybercrimes, leading to recommendations for combating and preventing cyber-attacks. The study highlights the significance of addressing cyber threats in the digital banking era and provides valuable insights for researchers and practitioners in the field.

Dissertation proposals
(Evaluate the relationship between e-
banking and cybercrime within UK banking
industry)

DECLARATION
I hereby declare that the project work entitled “Evaluate the relationship between e-
banking and cybercrime within UK banking industry” submitted for the partial fulfilment of
requirements of the aware of a degree of business studies is my own original work.
Additionally, the information being provided in the literature review section has also been
duly acknowledged in the text and the list of references is also offered. No section of this
dissertation was previously presented for another diploma or degree at this or any other
educational institution.
Name: Date: 1-09-2022

ABSTRACT
The report is being commissioned to analyse the relationship between e-banking and
cybercrime within UK banking industry. The research work was being conducted on Lloyds
Banking Group, which is the leading bank in UK. Different literatures were being explored
regarding this topic. Additionally, both primary along with the secondary data was being
accumulated in the study. Primary data was collected from the 20 employees of the bank.
Further, quantitative analysis was being performed through seeking help from SPSS software
to have more reliable and valid outcomes of the study. The findings and analysis of the study
reveals that there is a strong association amid e-banking and cybercrimes in the UK banking
industry. With the increase in the e-banking there has been augmentation in the rate of
cybercrimes. Thus, recommendations for combating and preventing cyber-attacks were being
offered in the final section of the report.

ACKNOWLEDGEMENT
I will like to acknowledge the University to provide me this opportunity to the
research study under the title “Evaluate the relationship between e-banking and cybercrime
within UK banking industry”. I would like to thanks my college, teachers, family and friends
for supporting me during the research and offering me right direction throughout this process.

CONTENTS
CHAPTER – 1: INTRODUCTION...........................................................................................1
1.1 Background of the study..............................................................................................1
1.2 Research aim...............................................................................................................1
1.3 Research objectives.....................................................................................................1
1.4 Research question........................................................................................................2
1.5 Rationale of the study..................................................................................................2
1.6 Significance of the study.............................................................................................2
CHAPTER – 2: LITERATURE REVIEW................................................................................4
2.1 Overview of the chapter..............................................................................................4
2.2 Concept of the e-banking and cybercrime...................................................................4
2.3 Role of e-banking in cybercrime.................................................................................6
2.4 Benefits of overcoming cybercrimes through e-banking..........................................10
CHAPTER – 3: ANALYSIS....................................................................................................12
3.1 Overview of the chapter............................................................................................12
3.2 Research approach.....................................................................................................12
3.3 Research philosophies...............................................................................................12
3.4 Research strategy.......................................................................................................12
3.5 Research design.........................................................................................................13
3.6 Data collection methods............................................................................................13
3.7 Data analysis methods...............................................................................................13
3.8 Sampling....................................................................................................................13
3.9 Ethical considerations................................................................................................14
CHAPTER – 4: DATA, METHODOLOGY AND RESULTS...............................................15
4.1 Overview of the chapter............................................................................................15
4.2 Presentation of the results..........................................................................................15
4.3 Discussion..................................................................................................................34
CHAPTER – 5: SUMMARY&CONCLUSION......................................................................36
Conclusion............................................................................................................................36
Recommendations................................................................................................................38
REFERENCES.........................................................................................................................40
APPENDIX – I.........................................................................................................................45
Questionnaire........................................................................................................................45
APPENDIX – II.......................................................................................................................47

Research title: Evaluate the relationship between e-banking and cybercrime within UK
banking industry
CHAPTER – 1: INTRODUCTION
1.1 Background of the study
There are some of the inventions and creativeness that have altered the dynamics of
banking sector as much as the electronic insurgency. Across the globe, banks are
reorganizing their business approaches for taking the benefit of novel occupational prospects
being provided by electronic banking. Talking in relation with the e-banking, it is believed to
have initiated in the year 1980s. From that time, it has been mounting up in an unprecedented
dimension in line with the growth in ICT development (Barker, 2020). E-banking has
allowed banks to overcome the boundaries, undertaking the strategic outlook and brining in
new prospects. As per Barker (2020), there has been reduction in the cost of processing due
to information communication technology. Even through there is no official definition of
electronic banking has been set up, it is usually suggested to be a service that enables the
clients to utilize some types of computers to access account particular data and conceivably
carries out routine banking transactions from any remote place, for example home or
workplace. In addition to this, it can also be said that e-banking has several rewards to the
clients in relation with accessibility where the clients can carry out their daily activities of the
business from their comfort level as well as security of any location from, they desire to
perform (Chevers, 2019). This was accompanied by trapping of telephone, violations of
privacy, encroaching as well as dissemination of illegal materials. Based on this, the present
research work aims to analyse the relationship between e-banking and cybercrime within UK
banking industry.
1.2 Research aim
The main aim of the current research report is to analyse the relationship between e-
banking and cybercrime within UK banking industry: A study on Lloyds Banking Group”
1.3 Research objectives
For fulfilling the above aim, there is a requirement of certain small objectives and
these are as follows:
 To increase basic understanding about the e-banking and cybercrime
 To determine the role of e-banking in cybercrime within Lloyds Banking Group
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 To examine the benefits that Lloyds Banking Group could be gained by overcoming
cybercrime through e-banking
1.4 Research question
Some of the research questions that the current research study will be going to answer
are as follows:
 What is concept of the e-banking and cybercrime?
 What is the role of e-banking in cybercrime within Lloyds Banking Group?
 What are the advantages that Lloyds Banking Group could be gained by overcoming
cybercrime through e-banking?
1.5 Rationale of the study
With the rising level of internet technologies such as 3G, 4G and 5G, the global
village is effectively sharing as well as communicating important information throughout the
network. Even the banking industry has also adopted digitalization for offering ease and
convenience to their customers. In the present era of globalization, electronic or online
banking has transformed the integral transactions of the modern 21st century. The
development of the e-banking technology is making the transactions of banks very simple
with just a single click. Furthermore, it has made banking very fast and convenient
(Olowokere and Olufunmilayo, 2018). Further, in the present time, because of the increasing
level of cybercrimes there has been lot of damages to individuals, companies and even the
government of a particular nation as well (Ablon, LibickiandGolay, 2015). The percentage of
the damages, challenges and risk related with the cybercrimes have augmented and pertaining
to this, the current research report is being undertaken for ascertaining the association
between e-banking and cybercrime.
1.6 Significance of the study
The current research study in relation with the relationship between e-banking and
cybercrimes within the UK banking industry is considered to be very crucial. This is due to
the fact that this research work supports in conducting valuable as well as comprehensive
data in regards with the topic of e-banking and cybercrime. Other than this, the following
study will also help in explaining different sub-sections like understanding the idea of the e-
banking and cybercrime in the banking industry, role and advantages in overcoming the
impact of the cybercrime. In addition to this, in the present digitalized world, people are more
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making use of electronic banking services due to its ease and convenience. However, this has
resulted in the rise in the cybercrimes, online frauds and money related scams Goel (2016).
Thus, this research is making an effort to understand the ways cyber-crimes are
related with e-banking. It will further be going to render a supportive hand to all those
researchers as well as practitioners who are undertaking studies in this field. Furthermore, the
present research work will also help the researcher both personally as well as professional
which leads to improvements in the skills along with knowledge and understanding of this
specific topic.
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CHAPTER – 2: LITERATURE REVIEW
2.1 Overview of the chapter
The next important chapter after the introduction is the literature review section. In
the simplest level, it is being defined as the chapter which offers an overview of the main
literature which are pertinent to the topic under study.
2.2 Concept of the e-banking and cybercrime
According to Olowokere and Olufunmilayo (2018), e-banking is an innovation
wherein novel information technologies are being merged into the out-mode services of bank.
Further, the electronic banking services are being boosted by the major drivers such as
maximization of the revenue and minimization of the operating costs. On the other hand,
Bhandary (2021), have stated that e-banking services are fundamentally a self-service by the
clients and thus, for the banks, it needs less resources and the transaction cost along with the
production cost is also very minimum.
Earlier studies being conducted by Chaimaa, Najib and Rachid (2021) have argued
that e-banking will not only help in generating new service delivery channel, however it
might also result into creation of value to both the clients and the banks. There has been
substantial evolution in the banking system all across the globe due to the reaction to the
altering present lifestyle of people. On contrary to this, Burgers,Brugman andBoeynaems
(2019) have stated that one of the key alterations is introducing the novel technology into the
system as well as accepting the same which is known as electronic banking. E-banking is a
novel type of reform in the services of banks that has been and is playing a crucial role in the
achievement of the electronic government.
As stated by Manvikar, Joshi and Guru (2018), e-banking encompasses all the
banking services dependent on the execution of the electronic system. He further stated that
this has become one of the most crucial phenomena in the banking sector and will continue to
progress with the advancement of information technology. Therefore, it can be said that the
financial industry is steadily undergoing modifications from the traditional system to a
paperless system which is more appropriate as well as consistent. Nevertheless, it has been
argued by Ali and et.al. (2017), the speedy evolution of the market for the electronic devices
along with the tools has resulted in the development of different definition of e-banking by
different researchers. Even through all these definitions does not vary in the principle, they
are found on the topic of the study and field of investigation.
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As per Punter, Coburn and Ralph (2016), cybercrime is being regarded as one of the
burning issues in the online banking industry in the present world. According to Kumar
(2016), cybercrime can be referred as the computer mediated transactions being carried by
the international electronic networks which are illegal and regarded as unlawful by some of
the parties. For the purpose of having suitable measurements to be executed, firms are
required to comprehend the influence of cybercrimes. Financial firms are required to be
aware of the threats related to internet and must take into concern all those measures that can
support in making improvement in the awareness of the people in the context of the safety
and to sustainable financial business environment.
Other than different benefits being brought up by the fast evolving as well as
innovative World Wide Web, which is being regarded as effective and efficient in several
ways, the internet comes with idea of negatives as well. As per Yu, Hou and Lang (2018),
because of the development of new technologies, there has been development of new
criminal prospects however few novel kinds of crimes. In defence, it can be said that
cybercrimes are one of its one extension to the current novel illegal activities. As cited by
Manvikar, Joshi and Guru (2018), software privacy is being regarded as the key issue being
faced by the technological industry in the present time. This statement was further
supplemented by Jansen (2015), saying that privacy along with intellectual property rights are
some of the top issues of professionals. There are two important modes in acquiring data
which has controlled the mass other than the expansion of the cyberspace and erosion and
that is streaming and piracy.
As per Ablon, LibickiandGolay (2015), in the daily life and the present time of living,
the most common and widespread thing throughout the globe is the working on the online
system. This situation became more prevalent after the coronavirus pandemic in the year
2019 which has made the global world to reside and depend on the internet and online means.
Now, without making use of internet and online processing, communication and many other
processing of tasks is next to impossible. However, this has given birth to rising threat of
conducting cyber-attacks by attackers which is just like robbery in the bank or home.
Cybercrimes, also involves robbing of the personal belongings of the individual and present
the same on the internet directly and indirectly and sharing the same through electronic
device. According to Xingan (2018), this might cause a national threat and physiological
disorder along with financial influence on individual or even on any business corporation.
However, there are different ways which can be adopted for minimizing the cybercrimes such
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as through comprehending the future trends of this cyber interrupts as well as the ways of
preventing from them.
As per Akhtar,Parwej and Perwej (2017), there are numerous cybercriminals who are
being grouped as crackers, hackers, career criminals, cyber bulls, pranksters and
cyberterrorists. Other than this, there are different types of crimes such as data crimes, which
are being referred as those crimes which is concerned with data interpretations, modification
and data theft which are very confidential to utilize for any individual. On the other hand,
network crimes involve transmission, damaging, interfering, inputting, deleting, changing,
suppressing and deteriorating the information being stored on the network.
2.3 Role of e-banking in cybercrime
As stated by Manvikar, Joshi and Guru (2018), information technology has an
important role to play in the field of banking. Electronic or online banking is being defined as
an electronic payment system that has allowed the clients of the banks and other financial
institutions to carry out financial transactions on a website being operated by the institutions
like virtual banks, retail banks and credit unions. Banking in UK in the current sense have
been developed in the last decades of the 18th century. From that time, the banking sector is
making use of varied manners of offering amenities to a common people in regards with
money. As per Paliwal (2016), the banking sector of UK has completely altered after the
occurrence of internet particularly in relation with the security due to the fact that in the
present time money is in the hand with just a single click. Now, the user has wide options for
managing the money with varied types of methods. Furthermore, e-banking implies provision
of banking products as well as services by electronic delivery channels.
According to Akhtar,Parwej and Perwej (2017), it is a method of banking where the
clients carry out transactions electronically through internet. It is also being known as
electronic fund transfer and simply making use of electronic means for transferring the finds
directly from one account to another instead of check or cash. nevertheless, on contrary to
this, Perwej (2019) have stated that because of the high level of connectivity to the globe
from any place, there has been development of different crimes and these has augmented
varied offenses as well. as per the authors, cyber-attacks are nothing but the computer
network attack that takes place from one computer to another through utilization of network
deliberately to change, deny, delete, destroy or damage the information of the host in the
attacking system or network.
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As per Chaimaa, Najib and Rachid (2021), with the increased in the utilization of
novel technology and online banking sector has more value as compared to the any other
sector. This mainly due to money and involvement of confidential information. Cyber
criminals and hackers are always targeting the banking industry for their personal benefits.
On the other hand, it has been stated by Wada andOdulaja (2021), that the cases in the
banking sector have grown increasingly because of the internet connectivity as well as
utilization of mobile. Each and every one makes use of internet and mobile phones for paying
bills, shopping and many other banking transactions such as online passbook, fund
transferring, opening fixed deposits and recurring deposits etc. The cyber criminals are
always stalking online and with they get the confidential data about the individual. This
might be dangerous for the banks as well as clients.
Most of the credit and debit cards details along with the confidential information are
always affected in cybercrime and cyber criminals misuse that information. This in turn
impacts the clients and banks severely due to heavy financial losses. Thus, it can be said that
the cybercrimes and e-banking have a strong relationship with each other. earlier, when
internet was not in vision, the cybercrimes were very limited. However, with the rise in the
level of digitalization, there has been augmentation in the cybercrimes which has impacted
both the banks and their potential customers.
Underpinning the discussion further, according to Ngo and Paternoster (2021), there
has been varied types of cybercrimes that has resulted due to development and massive
utilization of electronic banking. The financial influence of these types of cybercrimes is
either directly and indirectly on the financial system of the country. It might also have a
border ripple influence. As per Longe and Chiemeke (2018), there is a simplified list of
unintentional impact of information communication and technology to involve the acts like
cyber terrorism, phishing, electronic spam mails, fake copycat websites and cyber stalking.
Some of the types of crimes are particularly to UK like false statements, cut across all nations
and identify theft.
As per Jaishankar (2018), phishing is being defined as a simple high-tech identify
theft that does not only steak personal data along with the identify from the unsuspicious
users, however also an action of fraud in comparison with the legitimate businesses as well as
financial institutions that became the victim through phishing. This statement was further
supplemented by Roger (2018), who stated that phishing is generally a social designing
wrongdoing unavoidable in going after associations' or alternately people's (clients') data
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