Nature of frauds in Nigeria’s banking ecosystem, 2015-2019
| DOI | https://doi.org/10.1108/JFC-08-2021-0185 |
| Published date | 04 October 2021 |
| Date | 04 October 2021 |
| Pages | 1241-1248 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Oludayo Tade |
Nature of frauds in Nigeria’s
banking ecosystem, 2015-2019
Oludayo Tade
Criminology and Victimology Unit, Department of Sociology,
University of Ibadan, Ibadan, Nigeria
Abstract
Purpose –This paper aims to examine the natureof 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-outof cashless policy in Nigeria in 2014.
Design/methodology/approach –Using secondary data on frauds and forgeries in Nigeria Deposit
Insurance Corporation annualreport of 2019, the study engaged the data on frauds and forgeries to unpack
the complexdynamics in relation to bank frauds in Nigeria.
Findings –Findings show that fraud attackson deposit money banks increased year in year out although
the actual monetary loss droppedin 2019 as against 2018. Technology mediated transactions such as the use
of automated tellermachine and internet-based transactions experiencedthe most fraud. In relation to the role
of insiders,all cadres of staff were involved in the fraud but majorityof 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 vigilanceshould 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 casuals taffto perpetrate fraud.
Keywords Crime, Victimisation, Bankingfraud, Cashless policy, Casualisation,Frauds and forgeries
Paper type Research paper
Introduction
Since 2014 when Nigeria’s cashless policy became fully operational, fraud attacks on deposit
money banks (DMBs) has taken a new turn. Although the landscape of rendering banking
services is changing with the use of technology, ensuring safety of money of depositors, and
other investors remain vital to entrenching institutionaltrust in the Banking ecosystem. Ohiani
(2021) noted that while the introduction of technology in banking services enhances service
delivery, it also opens opportunity for criminal opportunities. Tade (2013) avers that the I nternet
has created avenue for legitimate and illegitimate transactions. Studies related to frauds in
Nigerian banking industry is growing (Tade and Adeniyi, 2014;Tade and Adeniyi,2016;2017a,
2017b, 2020) , but intellectual investigation into the nature of frauds in comparative perspective
within the banking system since the outset of cashless policy in 2014 is scarce.
As a huge business, fraud causes great risk to organisations, individuals and the society
(Clinton Free, 2015). While fraud is a global problem, there are contextual variations to the
phenomenon. For instance, Tade and Adeniyi (2016) studied automated teller machine (ATM)
fraud in southwest Nigeria. They found that insiders such as friends, family members and
The author appreciates the reviewers of this paper for their contributions which has improved its
quality to this level. Author also like to thank Nigerian Deposit Insurance Scheme (NDIC) for the
valuabledata used for this study. The support of Dr MuhammadFaisol Olaitan is also acknowledged.
Frauds in
Nigeria’s
banking
ecosystem
1241
Journalof Financial Crime
Vol.29 No. 4, 2022
pp. 1241-1248
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-08-2021-0185
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