Transformation of the hexagon fraud model (S.C.C.O.R.E.L.L Model): moderated by social media as a whistleblowing system information channe

This research investigates the impact of stimulus, capability, collusion, opportunity, rationalization, ego, lack of empathy, and spirituality on financial reporting fraud. This chapter also explores how social media can moderate these impacts as a channel for whistleblowing information. Based on balanced panel data with a sample of 441 research data, the research focuses on commercial banks registered with the Financial Services Authority, Indonesia, from 2016 to 2022. The research results reveal that opportunity has a negative influence on fraudulent financial reporting; lack of empathy also has a negative influence on fraudulent financial reporting; lack of spirituality has a positive influence on fraudulent financial reporting; social media as an information channel for the whistleblowing system weakens the influence of lack of spirituality on fraudulent financial reporting, and social media strengthens the influence of opportunity and lack of empathy on fraudulent financial reporting. This research not only aims to bridge the research gap regarding financial reporting that contains fraud (fraud theory) but also provides practical insights and recommendations for regulators, especially in monitoring financial reporting that contains fraud in the banking sector. Hence, these findings are very relevant and can be applied.