E-Fraud in Nigerian Banks: Why and How?

Ololade, Babatunde Moses; Salawu, Mary Kehinde; Adekanmi, Aderemi Daniel

doi:10.4236/jfrm.2020.93012

Cited by 11 publications

(4 citation statements)

References 13 publications

(17 reference statements)

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“…Despite the gains of electronic banking through automated teller machines, mobile phone USSD transactions, point of sale banking transactions and the online web transactions, Babatunde, Salawu and Adekanmi [11] suggested that the adoption of these electronic payment platforms as a convenient means of payment have increased the extent of occurrence of electronic fraud and cyber-attacks in Nigerian Banks.…”

Section: Statement Of the Problemmentioning

confidence: 99%

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Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

Jolaiya

2024

AJEBA

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The study investigated the effect of electronic fraud on the financial performance of banks in Nigeria. The specific objectives were to investigate the effect of electronic fraud through online web transactions, evaluate the effect of electronic fraud through automated teller machine, to determine the effect of fraud through point of sale machine, and to investigate the effect of fraud through mobile phone USSD transactions on the financial performance of selected deposit money banks in Nigeria. Panel Generalized method of moments (GMM) was used to analyze the panel series of the model. The Hausman test indicated the random effect model as most fit for the estimation. The major findings of the study revealed that fraud through the automated teller machine (AEF) has significant negative impact on the financial performance of the deposit money banks in Nigeria. The panel regression result also revealed that fraud through the mobile phone channel (MPEF), and fraud through the online banking channel (OBEF) had significant negative effect on the financial performance of the banks studied. The study concluded that electronic fraud has significant negative relationship with the performance of banks. The policy implication of these findings holds for both management of banks and the financial sector authorities to engineer strategic fraud mitigation technology to strengthen confidence in the financial system. Based on the findings, the study recommended that there is an urgent need for effective monitoring of bank fraud which will allow for the growth of Nigeria deposit banks performance. This is necessary especially this period that the world is going cashless and e payment instrument are used for cashless banking system. And failure to do that, will affect customer’s confidence in the industry. It is also recommended that Bank fraud shall be reduced through effective supervision and regulation of banks by the monetary authorities so that financial industry will contribute to the economy.

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Section: Statement Of the Problemmentioning

confidence: 99%

“…Babatunde, Salawu and Adekanmi [11] investigated "why and how e-frauds are perpetrated in the Deposits Money Banks in Nigeria by employees. The survey research design was adopted.…”

Section: Empirical Reviewmentioning

confidence: 99%

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

Jolaiya

2024

AJEBA

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“…Weak laws and weak policing have served as the fertile ground for fraud to thrive in Nigeria -where most internet fraudsters openly flaunt their wealth and are celebrated as role models [23,20,27,36]. This has further ensured that online fraud remains on the increase and incidences of occurrence more rampant [25,26,39,40,37].…”

Section: The Issue Of Security and Trustmentioning

confidence: 99%

Usability, Security and Trust of E-commerce Websites: The effect on the Nigerian E-shopper

Abraham

Osaisai

Nicholas

et al. 2021

AJRCoS

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With the internet fast-penetrating the Nigerian populace, e-commerce businesses have become commonplace, this has given rise to an increase in the number of Nigerians shopping online. However, there is a growing concern that most Nigerian e-shoppers prefer foreign to local online shops, resulting in an online fund-leak from the local economy. This work presents a comparative analysis of the usability of e-commerce websites in Nigeria, highlights the key findings viz: security and lack of trust. The findings were then related to why Nigerians prefer shopping from foreign rather than local e-commerce websites. We argued that for e-commerce to thrive; usability should be given prime consideration, security should be guaranteed and trust-building ethos is practiced. We conclude that despite the ‘pay on delivery’ mode applied by e-commerce websites to woo customers and gain trust, the insecurity posed by the prevalence of online fraud in Nigeria has created apprehension and distrust among Nigerians towards local e-commerce websites and is contributing to why Nigerians prefer to buy from foreign rather than local e-commerce websites.

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“…Fraud was one of the main causes of the crisis in the Nigerian banking system, which led to the 1994 implementation of the bank consolidation program and the 1990 closure of numerous banking institutions (Kanu, 2022;Sunday-Adebayo et al, 2022). According to the NDIC financial reports for 2018, reported by Ololade et al (2020), there were 37,817 fraud cases, a 44.4% rise from the 26,182 instances that occurred in 2017. In addition, the amount that fraud engulfed also drastically increased in 2018, from N2.37bn (US$6.2m) in 2017 and N2.4bn (US$6.3m) in 2016 to N15.15bn (US$39.9m).…”

Section: Introductionmentioning

confidence: 99%

Amoral behavior, control climate, job insecurity and fraudulent intentions among bank employees

Ametepe

Banwo²,

Arilesere³

2022

IJOES

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Purpose Combating and detecting fraud is a daunting task, especially in the Nigerian banking sector, because it necessitates a thorough understanding of the nature of fraud, as well as how it can be performed and concealed by fraudsters. Therefore, the purpose of this study is to empirically examine the relationship and the predictive ability between amoral behavior, control climate and perceived job insecurity on fraudulent intentions among bank employees in Lagos Metropolis. Design/methodology/approach Descriptive and cross-sectional designs were used to select employees from 12 banks using predetermined scales. In total, 1,080 questionnaires were distributed, but 950 were retrieved and analyzed. The study used multistage sampling by applying cluster, purposive and simple random sampling techniques. Correlation and hierarchical regression analyses were used to analyze the data. Findings A significant positive relationship and predictive abilities were established between employee’s amoral behavior and fraudulent intentions on the one hand, and employee’s job insecurity and fraudulent intention on the other, going by the additional variance identified when each variable was added in each step, implying that employees who exhibit amoral behavior are likely to engage in fraudulent intentions. In the same manner, employees who feel insecure are likely to engage in fraudulent acts because they would want to secure their future. However, there was a significant negative relationship and predictive ability between control climate and fraudulent intention; implying that inculcating a strict control climate minimizes or totally eradicates employees’ intentions to commit fraud. Research limitations/implications This paper is limited to amoral behavior, control climate, perceived job insecurity and fraudulent intentions; it is limited to employees in the banking sector, with a special focus on emerging economies, Nigeria, West Africa. The implication of this is that the result may not be generalized to other sectors and other countries. Practical implications The practical implication of the study is that managers should be aware that employees who are in danger of losing their jobs are more likely to engage in the fraudulent act, and this should be looked into. Training and retraining, workshops, conferences and seminars on employee morale behaviors as well as strict adherence to ethical codes of conduct are vital to enlighten the employees on the dangers of perpetrating fraud and the impact on themselves and the economy at large. Control climate is a very vital tool in curtailing the incidences of fraud in the organization. Originality/value This paper contributes to the knowledge by filling the gaps left by a lack of empirical examination into the combined influence of amoral behavior, control climate and perceived job insecurity on fraudulent intentions, especially among bankers in Lagos Metropolis. It provides management with guides on how to drastically reduce the menace of fraudulent intentions in the banking sector and by extension in other non-banking organizations.

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E-Fraud in Nigerian Banks: Why and How?

Cited by 11 publications

References 13 publications

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

Usability, Security and Trust of E-commerce Websites: The effect on the Nigerian E-shopper

Amoral behavior, control climate, job insecurity and fraudulent intentions among bank employees

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