Abstract
This study aims to provide an insight on the perception of bankers towards the effectiveness of fraud prevention and detection techniques in Malaysian Islamic banks. Based on 146 questionnaires received among managers and officers of Islamic banks in Malaysia, the findings indicated that the protection software/application as the most effective components of fraud prevention techniques. Meanwhile, bank reconciliation, password protection and internal control review and improvement represent as the most effective techniques when assessing independently. This study will hopefully benefit both academicians and practitioners in term of the evaluation of the current level of protection against bank fraud in Malaysia.