Analysis and Management of Fraud in Nigerian Banking Industry: Stakeholders’ Perspectives

Abstract

The study analyzed trend of frauds in the Nigerian Deposit Money Banks (DMBs) from 2005 to 2018 and the perceptions of the stakeholders on the devised mechanisms to manage the effects of fraud in DMBs. Data were obtained from the annual reports of the Nigerian Deposit Insurance Corporation (NDIC) and through the use of structured questionnaire to elicit information from the respondents. A sample size of 50 senior staff with at least 10 years’ experience was drawn from 10 banks (five from each bank) with relative high records of fraud cases. The data were analysed using descriptive statistics method. The analysis reveals that fraud cases and the value of frauds in the Nigerian banking industry have been on the increase particularly at the emergence of e-banking. The respondents agreed to the effectiveness of the devices and strategies employed to reduce and minimise fraud occurrence. However, the need for more enlightenment of customers on safe handling of security details, timely and effective persecution of fraudsters, compliance with and the enforcement of relevant Fraud Prevention Acts and the strengthening of the internal control units of banks among other things are still desirable.