ABSTRACT
The problem of automated teller machine
(ATM) fraud is global in nature and its consequences on bank patronage
should be of concern to the stakeholders in banks. This paper
investigates the dimensions of ATM fraud in Nigeria and proffer
solutions that will mitigate the ATM fraud in Nigeria banking system.
The paper employs both primary and secondary data to investigate the ATM
frauds in Nigeria banks. The chi-square statistical technique was used
to analyze the data and test the hypothesis raised. The paper concludes
that both bank customers and bankers have a strong role to play in
stopping the perpetrators of ATM frauds in the banks.
Card jamming, shoulder surfing and
stolen ATM cards constitutes 65.2% ATM frauds in Nigeria. This fraud is
usually perpetrated by the lower cadre. It involves theft,
misappropriation or embezzlement of company’s fund and other assess for
their own selfish interest.
Fraud is perhaps the most fatal of all
the risk confronting banks. The enormity of bank frauds in Nigeria can
be inferred from its value, volume and actual loss. A good numbers of
bank frauds never get reported to the appropriate authorities rather
they are suppressed because of the personalities involved or because of
concern over the negative image effect that the disclosure may cause if
information may lose confidence in the banks and this could cause a
major setback in the growth of the bank in particular.
Fraud leads to loss of money, which
belongs either to the banks or customers. Such losses may be absorbed by
the profits for the affected trading and this consequently reduces the
amount of profits which would have been available for distribution to
shareholders. Losses of fraud which are absorbed to equity capital of
the banks impairs that bank financial health and constraints its ability
to extend loans and advances for profitable operations. In existence
case rampant and large incidents of fraud could lead to a bank failure.
Fraud can increase the operating cost of installing the necessary
machinery for its prevention, detection, valuable time to safeguarding
it assets from fraudulent men distract management. Overall the
unproductive diversions of resources always reduce outputs and profits
which in turn could retard the growth of the bank.
It automatically leads to loss of
confidence in the bank by customers and potential customers of the bank
and those seriously discourage banking habits in Nigeria.
There had been several incidents of
banks going distressed due to manipulative and fraudulent activities of
management and staff of the bank. When this happens innocent depositors
lose their hard earned savings coupled with ineffective regulatory
policies of the central bank prior to the recapitalization of the
Charles Soludo administration .It also lead to a diminishing effect on
the asset quality of banks. The problem is more dangerous when
compounded by insiders’ loan abuses.
Indeed the first generation banks by
NDIC was largely a consequences of fraud perpetrated through insiders
loan abuses. If this problem is not adequately handled it could lead to
distress and bank failures.
TABLE OF CONTENTS
CHAPTER ONE
1.1 Introduction
1.2 Background to the Study
1.3 Statement of the Research Problem
1.4 Objectives of the Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Research Methodology
1.8 Significance of Study
1.9 Scope & Limitation of Study
1.10 Definition of Terms
CHAPTER TWO
2.1 Literature Review
2.2 Introduction
2.3 Origin of Fraud
2.4 Causes of Fraud
2.5 Solution to the Problem
2.6 Effects of Fraud on Nigerian Banks
2.7 Trends in Nigerian Banking Sector on Liquidity Regulation
2.8 Empirical Studies
2.9 Theoretical Background
2.10 Hypothesis
2.11 Model Specification
2.12 Econometric Analysis & Results. Estimation Results
2.13 Determinants of Banking Sector
2.14 Impact of Banking Crisis On Banking Sector Liquidity
2.15 Implementation
CHAPTER THREE
3.1 Methodology
3.2 Analysis & Discussion
3.3 Source of Data
CHAPTER FOUR
4.0 Data Presentation, Analysis and Interpretation
4.1 Introduction
4.2 Method of Estimation of Analysis
4.3 Presentation and Analysis on Data According To
Research Hypothesis and Discussion of Findings
CHAPTER FIVE
5.1 Summary, Conclusion and Recommendation
5.2 Conclusion
5.3 Recommendation Based On the Conclusion
5.4 Bibliography
REFERENCES