On the limits of trust. Characterising automated teller machine fraudsters in southwest Nigeria
| Pages | 1112-1125 |
| Date | 03 October 2016 |
| DOI | https://doi.org/10.1108/JFC-04-2015-0023 |
| Published date | 03 October 2016 |
| Author | Oludayo Tade,Oluwatosin Adeniyi |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
On the limits of trust
Characterising automated teller machine
fraudsters in southwest Nigeria
Oludayo Tade
Department of Sociology, University of Ibadan, Ibadan, Nigeria, and
Oluwatosin Adeniyi
Department of Economics, University of Ibadan, Ibadan, Nigeria
Abstract
Purpose – This paper aims to investigate automated teller machine (ATM) fraud in southwest
Nigeria, as extant studies have not examined the unintended consequences of ATM subscription
particularly the effect of the identity of fraudsters and the strategies for defrauding.
Design/methodology/approach – Using sequential exploratory strand of mixed method, data were
collected from both ATM users and victims of ATM fraud using multi-stage sampling procedure. This
involved purposive selection of Lagos and Oyo states.
Findings – Results showed that fraudsters were typically lovers, friends, relatives and sometimes
children of victims. Strategies for defrauding included card cloning, swapping of cards and physical
attacks at ATM galleries.
Research limitations/implications – Because of the size of the sample which is small, the research
results may lack generalizability. More expansive works are needed across Nigeria in this regard.
Practical implications – The paper includes implications for policy initiative concerning the
deployment and use of payment systems such as ATM in Nigeria.
Social implications – The paper reveals the limits of trust in cashless policy. It raises salient policy
issues concerning the need for the governance of trust to engender adoption.
Originality/value – The paper characterizes fraudsters and their strategies for defrauding.
Keywords Automated teller machine, Victim, Fraud, Lagos, Oyo
Paper type Research paper
Introduction
On 1 July 2014, the cash-less policy introduced by the Central Bank of Nigeria (CBN)
became operational in all 36 states of Nigeria and the federal Capital Territory (Abuja).
Hitherto, the cash-less policy was already in operation in about eight locations,
distributed around business zones of the country. The cash-less policy in Nigeria aims to
engender nancial inclusion by limiting the volume of cash transactions. The policy
stipulates a “cash handling charge” on daily cash withdrawals or cash deposits that
The authors appreciate the nancial support of the Institute for Money Technology and Financial
Inclusion (IMTFI) at the University of California, Irvine, USA, on the project titled “Automated
Teller Machine Fraud in Southwest Nigeria: The Shoe Wearer’s Perspectives”. The authors
equally thank Bill Maurer, Jan Chipchase and other participants at the IMTFI Fifth Conference for
Funded Researchers held at IMTFI, University of California, Irvine, USA, from 4 to 6 December
2013, for their insightful comments. Nonetheless, all errors remain the sole responsibility of the
authors.
The current issue and full text archive of this journal is available on Emerald Insight at:
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JFC
23,4
1112
Journalof Financial Crime
Vol.23 No. 4, 2016
pp.1112-1125
©Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-04-2015-0023
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