Title: Bank Fraud and Its Effect on Banks Performance in Nigeria
Authors: Ayewumi Ezonfade Fredrick, Ogechukwuka Chegwe, Ehiedu, Victor Chukwunweike, PhD; LL.B
Volume: 9
Issue: 2
Pages: 54-59
Publication Date: 2025/02/28
Abstract:
The need to proffer proactive fraud remedy to mitigate the adverse effect on bank profits (bank return on assets (BAROA), necessitated the use of (automated teller machine fraud (AFRAUD), internet fraud (IFRAUD), point of sales fraud (PFRAUD). Already existing data for AFRAUD, IFRAUD, PFRAUD and BAROA were obtained from the Nigeria Deposit Insurance Corporationand CBN Supervisory Annual Report from 2007 through 2022. The diver's fraud was used on the commercial banks return on asset for the period sampled. Multiple regression along other important statistics were performed. Frome the results,AFRAUD has adverse but not significant effect on BAROA. IFRAUD has constructive but not significant effect on BAROA. PFRAUDhas constructive but not significant effect on BAROA. Base on the findings the study concludes that the model only explains 31% of the effects of the types of fraud on commercial bank profits (ROA). Hence it is recommended that: underlying factors such as insiders abuse that makes fraud effect not to be noticed in banks should be identified and nip at the mud. More quality security should be available to the usage of ATM so as to reduce the fraud level. Since only 31% of the variables explain the BAROA the study recommends the incorporation of macro variables which could equally influence BAROA.