Nature of frauds in Nigeria’s banking ecosystem, 2015-2019

Purpose This paper aims to examine the nature of frauds and insider involvement in the perpetration of frauds in Nigeria’s banking ecosystem. It probes the payment platforms mostly vulnerable to fraud attacks since the role-out of cashless policy in Nigeria in 2014. Design/methodology/approach Using...

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Bibliographic Details
Published inJournal of financial crime Vol. 29; no. 4; pp. 1241 - 1248
Main Author Tade, Oludayo
Format Journal Article
LanguageEnglish
Published London Emerald Publishing Limited 30.09.2022
Emerald Group Publishing Limited
Subjects
Annual reports
Bank fraud
Bank management
Banking industry
Customers
Electronic banking
Social control
Victimization
Nigeria
Netherlands
Victimisation
Banking fraud
Cashless policy
Frauds and forgeries
Casualisation
Crime
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Summary:Purpose This paper aims to examine the nature of frauds and insider involvement in the perpetration of frauds in Nigeria’s banking ecosystem. It probes the payment platforms mostly vulnerable to fraud attacks since the role-out of cashless policy in Nigeria in 2014. Design/methodology/approach Using secondary data on frauds and forgeries in Nigeria Deposit Insurance Corporation annual report of 2019, the study engaged the data on frauds and forgeries to unpack the complex dynamics in relation to bank frauds in Nigeria. Findings Findings show that fraud attacks on deposit money banks increased year in year out although the actual monetary loss dropped in 2019 as against 2018. Technology mediated transactions such as the use of automated teller machine and internet-based transactions experienced the most fraud. In relation to the role of insiders, all cadres of staff were involved in the fraud but majority of those involved were temporary staff. Practical implications Arising from this, it is suggested that banks should continue to strengthen security system and governance structures. Employing temporary staff should be phased out while online and offline vigilance should be mounted. Originality/value The study contributes to knowledge by examining the nature of frauds and unveiling the insider dimensions of fraud and the possible factors increasing the vulnerability of casual staff to perpetrate fraud.
ISSN:1359-0790
1359-0790
1758-7239
DOI:10.1108/JFC-08-2021-0185