Electronic Bank Fraud in Nigeria: the need to Enhance Customers Trust

Author(s)

Ajayi, Foluso Isaac , Oloyede, John A. , Adejayan Adeola O ,

Download Full PDF Pages: 01-09 | Views: 662 | Downloads: 125 | DOI: 10.5281/zenodo.4732431

Volume 10 - April 2021 (04)

Abstract

This study examined the impact of electronic bank fraud on customers’ trust in Nigeria with the aim of finding ways to enhance customers trust in the banking sector. Primary data was used for the study through structured questionnaire. The study employed logit regression as method to analyse the data. The result revealed that ATMF is significant and positively related to CT, MOBF and WEBF were insignificant and negatively related to CT while POSF exerted a positive and insignificant relationship with CT. Findings from the study further revealed that mobile fraud and website fraud posed more threat to customers’ trust in electronic payment channels than ATM and POS. The study concluded that electronic fraud has significant relationship with customers’ trust in Nigeria. The study therefore recommended that Banks should increase their security layers and ensure continuous enlightenment of customers on the need to safeguard their PINs. Bank customers should avoid replying unsolicited text messages and mails while the CBN should provide adequate security measures for various electronic payment channels so as to enhance customers’ trust.

Keywords

Electronic Fraud, Customers’ trust, Automated Teller Machine, Mobile Banking, Web Purchases, Fraudsters, Bank Customer, Payment Channels.

References

                     i            Ajayi, L. B. (2006). The Nigerian banking and financial environment 2nd Ed. Pacesetter Creative Concept, Lagos. 7-12

        ii            Aigbe, P. & Akpojaro, J. (2014).Analysis of security issues in electronic payment systems.  International Journal of Computer Applications 108(10), 10

      iii            Akinyomi, O. J. (2012). Examination of fraud in the Nigerian banking sector and its prevention. Asian Journal of Management Research, 31(184)

       iv            Cressey, D. R. (1953). Other people’s money. Montclair, NJ: Patterson Smith, 1-300

         v            Financial Nigeria (15th Nov 2018) Electronic banking fraud to reach N6.1 trillion by 2021 – CBN.

       vi            Gujarati, D. N. (2013). Basic econometrics (5th Ed). Bell and Bain Glasgow

     vii            Ibanichuka, E. A. L. & Oko, I. A. (2019). Electronic fraud and financial performance of quoted commercial banks in Nigeria. International Journal of Advanced Academic Research  Management Practice, 5, (4)  15

   viii            Idolor, E. J. (2010). Bank fraud in Nigeria: underlying causes, effects and possible remedies. African Journal of Accounting, Economics, Finance and Banking Research, 6(6), 62. 

       ix            Kesharwani, A., & Radhakrishna, G. (2013). Drivers and Inhibitors of Internet Banking in India. Journal of Internet Banking and Commerce, 18(3).

         x            KPMG. (2013). Banking Industry Customer Satisfaction Survey, Nigeria, Lagos:KPMG Professional Services, retrieved from http://www.Kpmg.com.

       xi            Maruf, G. S. Rushami, Z. Y. & Sany, S. M. (2015). The impact of perceived security on e-trust, e-satisfaction and adoption of electronic banking in Nigeria: A conceptual review. Journal of Business and Management 17(10), 64-69

     xii            Ogbuji, C. N., Onuoha, C. B. &  Izogo, E. E. (2012)Analysis of the Negative Effects of the Automated Teller Machine (ATM) as a Channel for Delivering Banking Services in Nigeria International Journal of Business and Management 7(7)

   xiii            Olaleye, J. O. & Fashina, A.  F. (2019) electronic banking fraud in Nigeria: effects and controls Global Scientific Journal 7(8)

   xiv            Popoola, A. F., Fakunle, I. O., Omole, I. I. & Oyedeji, O. (2018) Bank fraud and its effect on Nigerian Economy- A study of selected quoted banks. European Journal of Accounting, Auditing and Finance Research, 6(8), 104-120.

     xv            Popoola, N. F. (2013). The effect of trust in adoption of internet banking: Acase study of Nigeria. International Journal of Economic and Business Management, 1(2), 19-24

   xvi            Taiwo, J. N., Agwu, M. E., Babajide A.A., Okafor T. C., & Isibor A. A. (2016)growth of bank frauds and the impact on the Nigerian banking industry. Journal of Business Management and Economics 4(12) 

 xvii            The cable online news (29th June2018) CBN: Electronic fraud is on the rise

xviii            The Nation online news paper (18th Oct., 2019)

   xix            The Nigeria Electronic Fraud Forum (NeFF) Annual Report (2016). A changing payments Ecosystem: The Security challenge.

   xx            Wolfe, D., & Hermanson, D. R. (2004). The fraud diamond: Considering four elements of fraud. The CPA Journal, 74 (12), 38-42

Cite this Article: