Impact of Cyber-Security on Fraud Prevention in Nigerian Commercial Banks

https://doi.org/10.35912/jakman.v4i1.1527
Published: Dec 19, 2022

Abstract:

Purpose: The purpose of this research was to investigate the impact of cyber-security on fraud prevention in Nigerian commercial banks.

Method: The researcher collected primary data through the interview (WhatsApp video call) conducted with the senior employees of the respective commercial banks who know the subject matter.

Result: The outcomes of the research demonstrated that cloud security statistically increases fraud prevention in Nigeria; also, that application security statistically increases fraud prevention in Nigeria.

Contributions: it was suggested that Nigerian financial industry should be able to effectively detect fraudulent transactions and prevent them from causing financial or reputational damage to the customers or other financial institutions (FI), also, there should be a special awareness program to educate the public on how to always use strong passwords for their devices to prevent hacking, loss of money, or other resources.

Novelties: The variables adopted in this study as well as the sample size, results, and recommendations have not been used by eminent scholars in this manner.

Limitations: the results of this study would be limited to commercial banks in Nigeria, and therefore may not apply to other sectors of the economy. Similar studies were suggested to be carried out, covering other sectors of the economy to validate these results.

Keywords:
1. Cyber Security
2. Cloud Security
3. Application Security
4. Fraud Prevention
5. Commercial Banks
Authors:
1 . Chika Odukwu Victory
2 . Eke Promise
3 . Chukwumati N Mike
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How to Cite
Victory, C. O. . ., Promise, E. ., & Mike, C. N. (2022). Impact of Cyber-Security on Fraud Prevention in Nigerian Commercial Banks. Jurnal Akuntansi, Keuangan, Dan Manajemen, 4(1), 15–27. https://doi.org/10.35912/jakman.v4i1.1527
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Issue & Section
Vol. 4 No. 1 (2022): Desember
Articles
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References

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    Ahmed, A. A., Al-Khater, W. A., Al-Maadeed, S., Sadiq, A. S., & Khan, M. K. (2020). Comprehensive Review of Cybercrime Detection Techniques.

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    Andi, K., Kusumanto, R., & Yusi, S. (2022). IoT Monitoring for PV System Optimization in Hospital Environment Application. Studies in Informatics, Technology and Systems, 1(1), 1-8.

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    Buchanan, B. (2016). The cybersecurity dilemma: Hacking, trust, and fear between nations: Oxford University Press.

    Chika, O. V., Promise, E., & Werikum, E. V. (2022). Influence of Liquidity and Profitability on Profits Growth of Nigerian Pharmaceutical Firms. Goodwood Akuntansi dan Auditing Reviu, 1(1), 1-13.

    Culatta, E., Clay-Warner, J., Boyle, K. M., & Oshri, A. (2020). Sexual revictimization: A routine activity theory explanation. Journal of interpersonal violence, 35(15-16), 2800-2824.

    Efiong, E. J., Inyang, I. O., & Joshua, U. (2016). Effectiveness of the mechanisms of fraud prevention and detection in Nigeria. Advances in Social Sciences Research Journal, 3(3).

    Heliantono, H., Gunawan, I. D., Khomsiyah, K., & Arsjah, R. J. (2020). Moral development as the influencer of fraud detection. International journal of Financial, Accounting, and Management, 2(1), 1-11.

    Herrero, J., Torres, A., Vivas, P., Hidalgo, A., Rodríguez, F. J., & Urueña, A. (2021). Smartphone addiction and cybercrime victimization in the context of lifestyles routine activities and self-control theories: The user’s dual vulnerability model of cybercrime victimization. International journal of environmental research and public health, 18(7), 3763.

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    Leukfeldt, E. R., & Holt, T. J. (2022). Cybercrime on the menu? Examining cafeteria-style offending among financially motivated cybercriminals. Computers in Human Behavior, 126, 106979. doi:10.1016/j.chb.2021.106979

    Muhattan. (2015). 3 Essential types of cyber security solutions. Manhattan tech support publishers-- www.ilovepdf.com.

    Nugraha, R., & Bayunitri, B. I. (2020). The influence of internal control on fraud prevention (Case study at Bank BRI of Cimahi City). International journal of Financial, Accounting, and Management, 2(3), 199-211.

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    Pandey, A. K., & Alsolami, F. (2020). Malware Analysis in Web Application Security: An Investigation and Suggestion. International Journal of Advanced Computer Science and Applications, 11(7), 191–201. doi:https://doi.org/10.14569/IJACSA.2020.0110725

    Rahman, R. A., & Anwar, I. S. K. (2014). Effectiveness of fraud prevention and detection techniques in Malaysian Islamic banks. Procedia-Social and Behavioral Sciences, 145, 97-102.

    Samuel, O., Pelumi, I., & Fasilat, O. (2021). Effect of internal control system on fraud prevention among deposit money banks in Kwara State, Nigeria. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 264–271.

    Valan, M. L., & Srinivasan, M. (2021). The application of routine activity theory in explaining victimization of child marriage. International review of victimology, 27(2), 211-226.

    Zheng, Y., Pal, A., Abuadbba, S., Pokhrel, S. R., Nepal, S., & Janicke, H. (2020). Towards IoT Security Automation and Orchestration. Paper presented at the 2020 Second IEEE International Conference on Trust, Privacy and Security in Intelligent Systems and Applications (TPS-ISA).

  1. Adeniyi, A. (2016). Analysis of fraud in banks: Evidence from Nigeria. International Journal of Innovative Finance and Economics Research, 4(2), 16-25.
  2. Ahmed, A. A., Al-Khater, W. A., Al-Maadeed, S., Sadiq, A. S., & Khan, M. K. (2020). Comprehensive Review of Cybercrime Detection Techniques.
  3. Alao, A. A. (2016). Forensic auditing and financial fraud in Nigerian deposit money banks (DMBs). European Journal of Accounting, Auditing and Finance Research, 4(8), 1-19.
  4. Aloraini, B., Nagappan, M., German, D. M., Hayashi, S., & Higo, Y. (2019). An empirical study of security warnings from static application security testing tools. Journal of Systems and Software, 158, 110427.
  5. Andi, K., Kusumanto, R., & Yusi, S. (2022). IoT Monitoring for PV System Optimization in Hospital Environment Application. Studies in Informatics, Technology and Systems, 1(1), 1-8.
  6. Antonucci, D. (2017). The cyber risk handbook: Creating and measuring effective cybersecurity capabilities: John Wiley & Sons.
  7. Babayo, S., Bakri, M., Usman, S., Mohammed, K. T., & Muhammad, A. Y. (2021). Cybersecurity and cybercrime in Nigeria: The implications on national security and digital economy. Journal of Intelligence and Cyber Security, 4(1).
  8. Badejo, B., Okuneye, B., & Taiwo, M. (2018). Fraud detection in the banking system in Nigeria: Challenges and prospects. Shirkah: Journal of Economics and Business, 2(3).
  9. Buchanan, B. (2016). The cybersecurity dilemma: Hacking, trust, and fear between nations: Oxford University Press.
  10. Chika, O. V., Promise, E., & Werikum, E. V. (2022). Influence of Liquidity and Profitability on Profits Growth of Nigerian Pharmaceutical Firms. Goodwood Akuntansi dan Auditing Reviu, 1(1), 1-13.
  11. Culatta, E., Clay-Warner, J., Boyle, K. M., & Oshri, A. (2020). Sexual revictimization: A routine activity theory explanation. Journal of interpersonal violence, 35(15-16), 2800-2824.
  12. Efiong, E. J., Inyang, I. O., & Joshua, U. (2016). Effectiveness of the mechanisms of fraud prevention and detection in Nigeria. Advances in Social Sciences Research Journal, 3(3).
  13. Heliantono, H., Gunawan, I. D., Khomsiyah, K., & Arsjah, R. J. (2020). Moral development as the influencer of fraud detection. International journal of Financial, Accounting, and Management, 2(1), 1-11.
  14. Herrero, J., Torres, A., Vivas, P., Hidalgo, A., Rodríguez, F. J., & Urueña, A. (2021). Smartphone addiction and cybercrime victimization in the context of lifestyles routine activities and self-control theories: The user’s dual vulnerability model of cybercrime victimization. International journal of environmental research and public health, 18(7), 3763.
  15. Ibrahim, U. (2019). The Impact of Cybercrime on the Nigerian Economy and banking system. NDIC Quarterly, 34(12), 1-20.
  16. Jeetendra, P. (2017). Introduction to cyber security. Uttarakhand Open University, 978-993-84813-84896-84813.
  17. Leukfeldt, E. R., & Holt, T. J. (2022). Cybercrime on the menu? Examining cafeteria-style offending among financially motivated cybercriminals. Computers in Human Behavior, 126, 106979. doi:10.1016/j.chb.2021.106979
  18. Muhattan. (2015). 3 Essential types of cyber security solutions. Manhattan tech support publishers-- www.ilovepdf.com.
  19. Nugraha, R., & Bayunitri, B. I. (2020). The influence of internal control on fraud prevention (Case study at Bank BRI of Cimahi City). International journal of Financial, Accounting, and Management, 2(3), 199-211.
  20. Olaniyan, N. O., Ekundayo, A. T., Oluwadare, O. E., & Bamisaye, T. O. (2021). Forensic accounting as an instrument for fraud detection and prevention in the public sector: moderating on ministries, departments and agencies in Nigeria. Acta Scientiarum Polonorum. Oeconomia, 20(1), 49-59.
  21. Onodi, B. E., Okafor, T. G., & Onyali, C. I. (2015). The impact of forensic investigative methods on corporate fraud deterrence in banks in Nigeria. European Journal of Accounting, Auditing and Finance, 3(4), 69-85.
  22. Pandey, A. K., & Alsolami, F. (2020). Malware Analysis in Web Application Security: An Investigation and Suggestion. International Journal of Advanced Computer Science and Applications, 11(7), 191–201. doi:https://doi.org/10.14569/IJACSA.2020.0110725
  23. Rahman, R. A., & Anwar, I. S. K. (2014). Effectiveness of fraud prevention and detection techniques in Malaysian Islamic banks. Procedia-Social and Behavioral Sciences, 145, 97-102.
  24. Samuel, O., Pelumi, I., & Fasilat, O. (2021). Effect of internal control system on fraud prevention among deposit money banks in Kwara State, Nigeria. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 264–271.
  25. Valan, M. L., & Srinivasan, M. (2021). The application of routine activity theory in explaining victimization of child marriage. International review of victimology, 27(2), 211-226.
  26. Zheng, Y., Pal, A., Abuadbba, S., Pokhrel, S. R., Nepal, S., & Janicke, H. (2020). Towards IoT Security Automation and Orchestration. Paper presented at the 2020 Second IEEE International Conference on Trust, Privacy and Security in Intelligent Systems and Applications (TPS-ISA).