Electronic Payment Systems and Fraud Management in Nigerian Banks

B. N. Igbokwe; N.C. Nwezeaku; U.G. Chris-Ejiogu

doi:10.56201/ijebm.vol.12.no1.2026.pg177.188

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Electronic Payment Systems and Fraud Management in Nigerian Banks

B. N. Igbokwe, N.C. Nwezeaku, U.G. Chris-Ejiogu

Abstract

This study investigated electronic payment systems and fraud management practices in Nigerian commercial banks. Employing a mixed-methods research design, the study surveyed seventy-five fraud management professionals across fifteen Nigerian banks, achieving a 90.7% response rate. The research explored electronic payment system deployment patterns, fraud typologies, detection mechanisms, management effectiveness, and factors influencing fraud prevention outcomes. Findings revealed near-universal adoption of traditional payment channels including ATM (93.3%) and POS terminals (86.7%), while advanced fraud detection technologies like machine learning (40.0%) and biometric authentication (33.3%) remained concentrated among larger institutions. Account takeover fraud (28.5%) and card fraud (24.3%) emerged as the most prevalent fraud types. Fraud management effectiveness rated moderately (M=3.39 on 5-point scale), with management commitment (M=4.32), technology investment (M=4.18), and staff training (M=4.09) identified as the most influential success factors. Smaller banks experienced fraud loss rates (0.42%) more than double those of large banks (0.18%), highlighting resource-based vulnerabilities. The study recommends enhanced adoption of advanced detection technologies, strengthened human capital development, establishment of industry-wide fraud information sharing mechanisms, and targeted support for smaller institutions. These findings contribute to understanding fraud management dynamics in developing economy contexts and inform policy development for enhanced electronic payment security in Nigerian banking.

Keywords

Electronic payment systemsfraud managementNigerian banksfraud detectionmachine learningcybersecurityfinancial technology.

References

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Electronic Payment Systems and Fraud Management in Nigerian Banks

Abstract

Keywords

References

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