Electronic fraud: an emerging cause of bank failure in Nigerian deposit money banks

Abstract

Purpose This study aims to review the degree to which fraud and other unethical practices especially in the digital space have affected the Nigerian banking industry both in the past and present, and how it will be a growing concern in the imminent future. The objective of the study was to examine the impact of electronic fraud on the quality of assets and return on assets of Nigerian deposit money banks. Design/methodology/approach The research used secondary data for the periods 2006 till 2018, which were collected from the Nigeria Deposit Insurance Corporation annual reports. Descriptive analysis and the ordinary least square method of regression analysis were used for data analysis. Findings Findings revealed that electronic fraud cases increased progressively over most of the years of study, which can be attributed to the increased bank products that are electronic-based. Originality/value Many of the reviewed literature examined electronic fraud and its impact on bank profitability but this study examined the cause of electronic fraud and what can be done to curtail it.

Modeling the Dynamic Behaviors of Bank Account Fraudsters Using Combined Simultaneous Game Theory with Neural Networks

“…The ordinary Least Square (OLS) [16] approach was utilized in the study to determine how online fraud affects bank failure [17]. The association between the relevant features is examined and it found that nancial fraud has been steadily rising over time, which can be ascribed to more people using bank products with an online component, the study does not consider the presence of outliers.…”

Analisis Fraud Terhadap Kelangsungan Usaha Bank Perkreditan Rakyat (Bpr) Menggunakan Fraud Diamond Model

“…Rata-rata permasalahan BPR disebabkan Pemilik (Pemegang Saham) atau Manajemen/Pengurus (Direktur atau Komisaris) melakukan fraud (Agustiyanti, 2017). Fraud juga dapat menyebabkan hilangnya kepercayaan publik terhadap industri perbankan sehingga dapat menghambat kelangsungan usaha bank dan akhirnya menyebabkan kegagalan (Akinwale et al, 2022).…”

“…Kepercayaan masyarakat yang menurun juga dapat membahayakan kelangsungan usaha BPR. Hal ini sejalan dengan penelitian Akinwale et al (2022), karena nasabah dapat menarik dananya dari BPR dan tidak menempatkan dananya pada BPR tersebut sehingga laba BPR menurun dan menyebabkan BPR dilikuidasi.…”