Impact of Fraud on Financial Assistance Programs and Its Prevention: A Case Study of Merankabandi, Burundi
Keywords:
Fraud, Financial Assistance, Merankabandi, Vulnerability targeting, and Prevention Mechanism
Abstract
The purpose of this study is to examine the frequency and processes of fraud on financial assistance programs, with a focus on Merankabandi in Burundi. It aimed to identify systemic vulnerabilities and recommend evidence-based preventive strategies to enhance program integrity and effectiveness. The design, methodology, and approach in this research involve reviewing documents and published papers as secondary data, conducting household survey answers analysis, interviewing local administrators, and observing in the field to thoroughly examine Merankabandi’s governance model in comparison to similar programs worldwide, thereby providing a context for its challenges. Data collected from a population of 56.104 and a sample of 96 beneficiaries, the majority of whom are female (92%), have little education, and work predominantly on farms. The modest direct admission of fraud categories contrasts with a large understanding of systemic vulnerabilities such as insufficient aid, a lack of guide manuals, and, most notably, low digital literacy (96%). The discussions of the findings in this research suggest that there may be either a misunderstanding of fraud or that fraud is genuinely low and unappreciated in Merankabandi, Burundi. Importantly, the study stresses the link between fraud and socioeconomic vulnerability, such as households with less education and digital abilities are disproportionately exposed to systemic risks, decreasing program integrity and trust in aid delivery. The recommendations stress a context-specific strategy that incorporates community-driven monitoring, digital literacy training, and safe whistleblower practices. The ultimate goal is to increase integrity, lower the risk of fraud, and decrease the efficacy of financial aid in vulnerable environments.
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References
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21. Iqbal, Z. (2025). The Role of Financial Crime in Digital Asset Scams : Lessons from Convicted The Role of Financial Crime in Digital Asset Scams : Lessons from Convicted Fraudsters. March. https://doi.org/10.13140/RG.2.2.31667.54563
22. Issn, V. O. L. N. O., Wanjiru, M. S., & Ndegwa, J. (2020). Finance & Banking Studies The Influence of Fraud Risk Management on Fraud Occurrence in Kenyan listed Companies. 9(4). https://doi.org/https://doi.org/10.20525/ijfbs.v9i4.943
23. Johnson, G. G., & Rudesill, C. L. (2001). An investigation into fraud prevention and detection of small businesses in the United States: responsibilities of auditors, managers, and business owners. Accounting Forum, 25(1), 56–78. https://doi.org/10.1111/1467-6303.00055
24. Kasimba, S. A., & Lujala, P. (2021). Community-based participatory governance platforms and sharing of mining benefits : evidence from Ghana. © Oxford University Press and Community Development Journal, 57(4), 635–654. https://doi.org/https://doi.org/10.1093/cdj/bsab021
25. Khan, H. U., Sohail, M., Nazir, S., Hussain, T., Shah, B., & Ali, F. (2023). Role of authentication factors in Fin ‑ tech mobile transaction security. Journal of Big Data. https://doi.org/10.1186/s40537-023-00807-3
26. Kothari, C. R. (2004). Research methodology : methods & techniques. New Age International (P) Ltd.
27. Laxman, V., Ramesh, N., Kumar, S., & Prakash, J. (2025). Emerging threats in digital payment and financial crime : A bibliometric review. Journal of Digital Economy, 3(March), 205–222. https://doi.org/10.1016/j.jdec.2025.04.002
28. Levi, M. (2008). Organized fraud and organizing frauds : Unpacking research on networks and organization. https://doi.org/10.1177/1748895808096470
29. Lutui, R., & Ahokovi, T. (2017). Financial fraud risk management and corporate governance. Proceedings of the 15th Australian Information Security Management Conference, AISM 2017, 5–13. https://doi.org/10.4225/75/5a84f10795b47
30. Maher, C. A., Corsello, R. M., Engle, T. A., Kuhlman, J. D., & Nedelec, J. L. (2024). Correlates of victim services for fraud and identity theft among victim service providers. Journal of Criminal Justice, 95(November), 102318. https://doi.org/10.1016/j.jcrimjus.2024.102318
31. Moura, L., Barcaui, A., & Payer, R. (2025). AI and Financial Fraud Prevention: Mapping the Trends and Challenges Through a Bibliometric Lens. In Journal of Risk and Financial Management (Vol. 18, Issue 6). Multidisciplinary Digital Publishing Institute (MDPI). https://doi.org/10.3390/jrfm18060323
32. Ncube, M. M., & Ngulube, P. (2025). Mapping theoretical approaches : a scoping review of data analytics in higher education.
33. Nyoman, N., Suryandari, A., Yadnyana, I. K., Ariyanto, D., Made, N., & Erawati, A. (2023). IMPLEMENTATION OF FRAUD TRIANGLE THEORY : A SYSTEMATIC LITERATURE REVIEW. 12(3), 90–102. https://doi.org/10.22495/jgrv12i3art10
34. Onesti, G., & Palumbo, R. (2023). Tone at the Top for Sustainable Corporate Governance to Prevent Fraud. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032198
35. Prenzler, T. (2020). What works in fraud prevention: a review of real-world intervention projects. Journal of Criminological Research, Policy and Practice, 6(1), 83–96. https://doi.org/10.1108/JCRPP-04-2019-0026
36. Rashid, M. A., Al-Mamun, A., Roudaki, H., & Yasser, Q. R. (2022). An Overview of Corporate Fraud and its Prevention Approach. Australasian Accounting, Business and Finance Journal, 16(1), 101–118. https://doi.org/10.14453/aabfj.v16i1.7
37. Ruja, I. N. (2024). Programs , Opportunities , and Challenges in Poverty Reduction : A Systematic Review. 05, 1–13. https://doi.org/10.1177/21582440241256242
38. Saini, A. K. (2023). The Role of Corporate Governance in Preventing Financial Fraud and Misconduct: An Empirical Study. International Journal of Early Childhood Special Education, 14(05), 8913–8917. https://doi.org/10.48047/intjecse/v14i5.1150
39. Salvin, P., & Lepcha, N. (2019). Financial Frauds and Scams. 1–7. https://doi.org/https://doi.org/10.1007/978-3-319-69892-2_191-1
40. Shari, N., Spivey, B. N., Zaheed, A. B., & Zahodne, L. B. (2020). Social Science & Medicine Psychological distress links perceived neighborhood characteristics to longitudinal trajectories of cognitive health in older adulthood. Social Science and Medicine, 258(June). https://doi.org/doi.org/10.1016/j.socscimed.2020.113125
41. Sinervo, L., Bartocci, L., & Ebdon, C. (2025). Toward sustainable governance with participatory budgeting. 36(1), 1–19. https://doi.org/10.1108/JPBAFM-11-2023-0205
42. Soldatos, J. (2022). Big Data and Artificial Intelligence in Digital Finance (J. and Nicosia (ed.)). Springer UK.
43. Stolk, C. Van. (2010). Toolkit on Tackling Error , Fraud and Corruption in Social Protection Programs Toolkit on Tackling Error , Fraud and Corruption in Social Protection Programs. Social Protection &Labor: The World Bank, 1002. www.worldbank.org/sp
44. Warinda, E., Nyariki, D. M., Wambua, S., Muasya, R. M., & Hanjra, M. A. (2020). Sustainable development in East Africa: impact evaluation of regional agricultural development projects in Burundi, Kenya, Rwanda, Tanzania, and Uganda. Natural Resources Forum, 44(1), 3–39. https://doi.org/10.1111/1477-8947.12191
45. WorldBank. (2021). Merankabandi: Overview of the social protection nets project in Burundi. 1–9.
46. Xiong, T. (2022). The analysis of the influence mechanism for internet financial fraud identification and user behavior based on machine learning approaches. Int J Syst Assur Eng Manag, 13(December), 996–1007. https://doi.org/doi.org/10.1007/s13198-021-01181-0
47. Zainal, S. F., Hashim, H. A., Ariff, A. M., & Salleh, Z. (2021). Research on fraud: an overview from small and medium enterprises (SMEs). In the Journal of Financial Crime. Emerald Group Holdings Ltd. https://doi.org/10.1108/JFC-09-2021-0205
48. Zheng, H., Li, Q., & Xia, C. (2024). Does financial literacy contribute to facilitating residents in safeguarding their rights as financial consumers ? A three-stage study based on the perspective of the “ fraud ” phenomenon. International Review of Economics and Finance, 93(PA), 720–735. https://doi.org/10.1016/j.iref.2024.03.053
2. Arroyo, P., Berger, L., & Smaili, N. (2025). Navigating Between Control and Trust : The Whistleblowing Mindset. Journal of Business Ethics, 19–35. https://doi.org/doi.org/10.1007/s10551-024-05807-8
3. Ashtiani, M. N., & Raahemi, B. (2022). Intelligent Fraud Detection in Financial Statements Using Machine Learning and Data Mining : A Systematic Literature Review. IEEE Access, 10(May 2021), 72504–72525. https://doi.org/10.1109/ACCESS.2021.3096799
4. Assistance, I. (2025). Types of Assistance: Individual Assistance versus Public Assistance FEMA.gov. 2024–2026. https://doi.org/fema.gov/assistance/individual.
5. Baljija, S. K., & Min, K. (2023). Evaluating the effectiveness of whistleblower protection : A new index. https://doi.org/10.1017/dap.2023.20
6. Bamigboye, O. (2020). Journal of Law and Global Policy Financial Fraud Prevention Through Strengthened Corporate Governance: A Discourse. 5(1), 29–39. https://doi.org/www.iiardjournals.org
7. Birol, B. (2019). CORPORATE GOVERNANCE AND FRAUD DETECTION: A STUDY FROM BORSA ISTANBUL. Eurasian Journal of Business and Management, 7(1), 44–64. https://doi.org/10.15604/ejbm.2019.07.01.005
8. Brady, D. (2019). Theories of the Causes of Poverty. https://doi.org/10.1146/annurev-soc-073018
9. Brzeska, J., & Fan, S. (2015). Social protection for poor , vulnerable and disadvantaged groups. https://doi.org/10.1108/CAER-09-2015-0123
10. Burton, A., Cooper, C., Dar, A., Mathews, L., Tripathi, K., Division, U. C. L., Wing, F., House, A. M., Road, T. C., & Wt, L. (2022). Exploring how , why and in what contexts older adults are at risk of financial cybercrime victimisation : A realist review. Experimental Gerontology, 159(December 2021), 111678. https://doi.org/10.1016/j.exger.2021.111678
11. Chiang, E., Kredens, K., & Thornton, J. (2025). Fighting fraud : Corpus-assisted approaches to understanding and disrupting fraud activity on the dark web. Applied Corpus Linguistics, 5(February). https://doi.org/doi.org/10.1016/j.acorp.2025.100159
12. Chimonaki, C., Papadakis, S., & Lemonakis, C. (2023). Perspectives in fraud theories – A systematic review approach [ version 1 ; peer review : awaiting peer review ]. 1–18.
13. Commission, E., & Polit, U. (2021). Telematics and Informatics Futures of artificial intelligence through technology readiness levels. Telematics and Informatics, 58(September 2020). https://doi.org/doi.org/10.1016/j.tele.2020.101525
14. Crombach, A., & Elbert, T. (2014). The benefits of aggressive traits: A study with current and former street children in Burundi. Child Abuse and Neglect, 38(6), 1041–1050. https://doi.org/10.1016/j.chiabu.2013.12.003
15. Dashtbayaz, M. L. (2025). The effect of internal controls on financial reporting quality in Iranian family firms. December. https://doi.org/10.1108/JFBM-09-2018-0047
16. Devereux, S., & White, P. (2010). Social Protection in Africa : Evidence , Politics , and Rights. 2, 53–77. https://doi.org/10.2202/1944-2858.1078
17. Flowerastia, R. D., Trisnawati, E., & Budiono, H. (2021). Fraud Awareness, Internal Control, and Corporate Governance on Fraud Prevention and Detection. Proceedings of the International Conference on Economics, Business, Social, and Humanities (ICEBSH 2021), 570(Icebsh), 235–242. https://doi.org/10.2991/assehr.k.210805.038
18. Gotelaere, S., & Paoli, L. (2025). Prevention and Control of Financial Fraud: a Scoping Review. European Journal on Criminal Policy and Research, 31(1), 1–21. https://doi.org/10.1007/s10610-022-09532-8
19. Gupta, M. D., & Rastogi, M. (2024). Corporate Governance and the Prevention of Fraud-an Analytical Study. International Journal of Multidisciplinary Research and Explorer, 4(2), 38–3. https://doie.org/10.0624/IJMRE.2024890805
20. Halbouni, S. S., Obeid, N., & Garbou, A. (2016). Corporate governance and information technology in fraud prevention and detection: Evidence from the UAE. Managerial Auditing Journal, 31(6–7), 589–628. https://doi.org/10.1108/MAJ-02-2015-1163
21. Iqbal, Z. (2025). The Role of Financial Crime in Digital Asset Scams : Lessons from Convicted The Role of Financial Crime in Digital Asset Scams : Lessons from Convicted Fraudsters. March. https://doi.org/10.13140/RG.2.2.31667.54563
22. Issn, V. O. L. N. O., Wanjiru, M. S., & Ndegwa, J. (2020). Finance & Banking Studies The Influence of Fraud Risk Management on Fraud Occurrence in Kenyan listed Companies. 9(4). https://doi.org/https://doi.org/10.20525/ijfbs.v9i4.943
23. Johnson, G. G., & Rudesill, C. L. (2001). An investigation into fraud prevention and detection of small businesses in the United States: responsibilities of auditors, managers, and business owners. Accounting Forum, 25(1), 56–78. https://doi.org/10.1111/1467-6303.00055
24. Kasimba, S. A., & Lujala, P. (2021). Community-based participatory governance platforms and sharing of mining benefits : evidence from Ghana. © Oxford University Press and Community Development Journal, 57(4), 635–654. https://doi.org/https://doi.org/10.1093/cdj/bsab021
25. Khan, H. U., Sohail, M., Nazir, S., Hussain, T., Shah, B., & Ali, F. (2023). Role of authentication factors in Fin ‑ tech mobile transaction security. Journal of Big Data. https://doi.org/10.1186/s40537-023-00807-3
26. Kothari, C. R. (2004). Research methodology : methods & techniques. New Age International (P) Ltd.
27. Laxman, V., Ramesh, N., Kumar, S., & Prakash, J. (2025). Emerging threats in digital payment and financial crime : A bibliometric review. Journal of Digital Economy, 3(March), 205–222. https://doi.org/10.1016/j.jdec.2025.04.002
28. Levi, M. (2008). Organized fraud and organizing frauds : Unpacking research on networks and organization. https://doi.org/10.1177/1748895808096470
29. Lutui, R., & Ahokovi, T. (2017). Financial fraud risk management and corporate governance. Proceedings of the 15th Australian Information Security Management Conference, AISM 2017, 5–13. https://doi.org/10.4225/75/5a84f10795b47
30. Maher, C. A., Corsello, R. M., Engle, T. A., Kuhlman, J. D., & Nedelec, J. L. (2024). Correlates of victim services for fraud and identity theft among victim service providers. Journal of Criminal Justice, 95(November), 102318. https://doi.org/10.1016/j.jcrimjus.2024.102318
31. Moura, L., Barcaui, A., & Payer, R. (2025). AI and Financial Fraud Prevention: Mapping the Trends and Challenges Through a Bibliometric Lens. In Journal of Risk and Financial Management (Vol. 18, Issue 6). Multidisciplinary Digital Publishing Institute (MDPI). https://doi.org/10.3390/jrfm18060323
32. Ncube, M. M., & Ngulube, P. (2025). Mapping theoretical approaches : a scoping review of data analytics in higher education.
33. Nyoman, N., Suryandari, A., Yadnyana, I. K., Ariyanto, D., Made, N., & Erawati, A. (2023). IMPLEMENTATION OF FRAUD TRIANGLE THEORY : A SYSTEMATIC LITERATURE REVIEW. 12(3), 90–102. https://doi.org/10.22495/jgrv12i3art10
34. Onesti, G., & Palumbo, R. (2023). Tone at the Top for Sustainable Corporate Governance to Prevent Fraud. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032198
35. Prenzler, T. (2020). What works in fraud prevention: a review of real-world intervention projects. Journal of Criminological Research, Policy and Practice, 6(1), 83–96. https://doi.org/10.1108/JCRPP-04-2019-0026
36. Rashid, M. A., Al-Mamun, A., Roudaki, H., & Yasser, Q. R. (2022). An Overview of Corporate Fraud and its Prevention Approach. Australasian Accounting, Business and Finance Journal, 16(1), 101–118. https://doi.org/10.14453/aabfj.v16i1.7
37. Ruja, I. N. (2024). Programs , Opportunities , and Challenges in Poverty Reduction : A Systematic Review. 05, 1–13. https://doi.org/10.1177/21582440241256242
38. Saini, A. K. (2023). The Role of Corporate Governance in Preventing Financial Fraud and Misconduct: An Empirical Study. International Journal of Early Childhood Special Education, 14(05), 8913–8917. https://doi.org/10.48047/intjecse/v14i5.1150
39. Salvin, P., & Lepcha, N. (2019). Financial Frauds and Scams. 1–7. https://doi.org/https://doi.org/10.1007/978-3-319-69892-2_191-1
40. Shari, N., Spivey, B. N., Zaheed, A. B., & Zahodne, L. B. (2020). Social Science & Medicine Psychological distress links perceived neighborhood characteristics to longitudinal trajectories of cognitive health in older adulthood. Social Science and Medicine, 258(June). https://doi.org/doi.org/10.1016/j.socscimed.2020.113125
41. Sinervo, L., Bartocci, L., & Ebdon, C. (2025). Toward sustainable governance with participatory budgeting. 36(1), 1–19. https://doi.org/10.1108/JPBAFM-11-2023-0205
42. Soldatos, J. (2022). Big Data and Artificial Intelligence in Digital Finance (J. and Nicosia (ed.)). Springer UK.
43. Stolk, C. Van. (2010). Toolkit on Tackling Error , Fraud and Corruption in Social Protection Programs Toolkit on Tackling Error , Fraud and Corruption in Social Protection Programs. Social Protection &Labor: The World Bank, 1002. www.worldbank.org/sp
44. Warinda, E., Nyariki, D. M., Wambua, S., Muasya, R. M., & Hanjra, M. A. (2020). Sustainable development in East Africa: impact evaluation of regional agricultural development projects in Burundi, Kenya, Rwanda, Tanzania, and Uganda. Natural Resources Forum, 44(1), 3–39. https://doi.org/10.1111/1477-8947.12191
45. WorldBank. (2021). Merankabandi: Overview of the social protection nets project in Burundi. 1–9.
46. Xiong, T. (2022). The analysis of the influence mechanism for internet financial fraud identification and user behavior based on machine learning approaches. Int J Syst Assur Eng Manag, 13(December), 996–1007. https://doi.org/doi.org/10.1007/s13198-021-01181-0
47. Zainal, S. F., Hashim, H. A., Ariff, A. M., & Salleh, Z. (2021). Research on fraud: an overview from small and medium enterprises (SMEs). In the Journal of Financial Crime. Emerald Group Holdings Ltd. https://doi.org/10.1108/JFC-09-2021-0205
48. Zheng, H., Li, Q., & Xia, C. (2024). Does financial literacy contribute to facilitating residents in safeguarding their rights as financial consumers ? A three-stage study based on the perspective of the “ fraud ” phenomenon. International Review of Economics and Finance, 93(PA), 720–735. https://doi.org/10.1016/j.iref.2024.03.053
Published
2026-02-28
How to Cite
Ndayizeye, D., & Shah, K. (2026). Impact of Fraud on Financial Assistance Programs and Its Prevention: A Case Study of Merankabandi, Burundi. European Scientific Journal, ESJ, 22(4), 86. https://doi.org/10.19044/esj.2026.v22n4p86
Section
ESJ Social Sciences
Copyright (c) 2026 Desire Ndayizeye, Kalgi Shah
This work is licensed under a Creative Commons Attribution 4.0 International License.
