Information Technology Control and Fraud Risk Detection in Deposit Money Banks (DMBs) in Nigeria

Information Technology Control and Fraud Risk Detection in Deposit Money Banks (DMBs) in Nigeria

Author by Dr. Samuel Dada

Journal/Publisher: International Journal Of Innovative Research & Development

Volume/Edition: 11

Language: English

Pages: 7 - 18

Abstract

The banking sector has been considered as a fulcrum for economic growth in any country because of the intermediary
role the banks play in collecting funds at interest from the surplus household and giving it out at a markup to the
deficit household. The smooth operations of banks however had been faced with the risk of fraud which has led to the
loss of a considerable amount of money running into billions of naira annually. This challenge had brought a bigger
problem of how to properly manage the risk of fraud and boast customers’ confidence in the banking sector in Nigeria
and globally. Information Technology Control had been perceived to influence fraud risk management. Therefore, this
study reviewed the effect of Information Technology Control on Fraud Risk Detection in Deposit Money Banks (DMBs)
in Nigeria.
The study employed the survey research design with a study population of 1,030 which comprised staff in the Internal
Control, Internal Audit and Information Technology departments of all Deposit Money Banks (DMBs) in Nigeria as
contained on the CBN website. The 13 listed banks were used as samples for the study and the Taro Yamane formula
was used to obtain a sample size of 288. The purposive sampling technique was subsequently used in administering
the questionnaire to the respondents. The reliability of Cronbach-alpha coefficients ranged from 0.864 to 0.952.
Descriptive and inferential statistics were used to analyze the data.
Similarly, the study showed that IT control has a significant effect on fraud risk detection in Deposit Money Banks
(DMBs) in Nigeria with F287=30.690, Df = 3 & 265, adj. R2 =0.209, p-value=0.000< 0> that IT Controls have a significant effect on fraud risk detection in DMBs in Nigeria. The study, therefore,
recommended that Banks should give priority to the implementation of information technology controls across all
their digital channels or platforms as this will help to promote adequate fraud risk detection on the platforms and
boost customers’ confidence in the banking sector.


Other Co-Authors