The Influence of Morality in Preventing Fraud in Village Fund Management: A Literature Review

Abstract

This study conducts a literature review to explore the determinants of fraud in village fund management, with a specific focus on morality as a moderating variable. Employing a descriptive literature review approach, the research synthesizes findings from 20 articles published between 2013 and 2025 in both national and international journals indexed in SINTA and Scopus. Data were categorized into three aspects: study identity, methodology, and key findings. The review confirms that fraud in village fund management is primarily driven by the classical Fraud Triangle elements—pressure, opportunity, and rationalization. Additional evidence supports the relevance of the Fraud Hexagon, which adds capability, arrogance, and collusion as explanatory variables. Significantly, the review demonstrates that morality and integrity can moderate the relationship between fraud determinants and fraudulent behavior, though empirical results vary across contexts. Technological developments, such as data analytics and machine learning, have also been increasingly applied in fraud detection, offering innovative tools to strengthen public accountability. This study contributes to theory by integrating ethical and moral dimensions into fraud models and to practice by recommending multidimensional strategies for fraud prevention. The findings suggest that sustainable village fund governance requires an integrated approach combining internal controls, independent audits, technological innovation, ethical leadership, and continuous moral reinforcement.