Unmasking the Path to Sustainable Fraud Mitigation through Cybersecurity Investments: Insights from Commercial Banks in Tanzania

Abstract

This study investigates how cybersecurity investments contribute to sustainable fraud mitigation in Tanzanian commercial banks. Using quantitative research design, data were collected from 293 banking professionals across ten banks, including IT, risk, compliance, and cybersecurity officers. Analysis using SmartPLS revealed that Incident Response Preparedness, Fraud Detection Systems Effectiveness, and Customer Awareness Programs significantly enhance fraud mitigation, while technological investments, employee training, and cybersecurity culture showed no significant impact. The model explained 53.2% of the variance in fraud mitigation outcomes, indicating strong explanatory power. The findings emphasize that banks should prioritize capability-based measures—such as detection systems and response readiness—over mere capital expenditure. Policymakers and regulators are encouraged to integrate cybersecurity into governance frameworks for long-term sustainability. The study provides novel empirical evidence from Tanzania, advancing understanding of how capability-driven cybersecurity strategies enhance fraud resilience in emerging financial markets.

Keywords:       Cybersecurity investments, Fraud mitigation, Sustainable banking, Tanzanian commercial banks.