Impact of Cyber -Security on Financial Fraud in Commercial Banks in Nigeria: A Case Study of Zenith Banks in Abuja
The study examined the impact of cyber-security of financial fraud in commercial banks in Nigeria: a case study of Zenith banks in Abuja. The study on the following objectives; the type of electronic frauds perpetrated in the banking sector, causes of cyber fraud in banks, challenges of curbing cyber fraud in the bank, effect of cyber fraud on Nigeria banks, and possible solutions for curbing cyber fraud in banks. The study is hitched on two hypotheses. The study adopted survey research design, and the population of the study consisted of 49 Zenith banks branches in Abuja. Multi-stage sampling techniques was used and 557 bank staff were sampled. Structured questionnaire was used to capture the response of the bank staff and it was analyzed statistical package for social science version 27 (SPSS). The objectives were analyzed using descriptive analysis while the hypotheses were tested using multiple regression and Kendal Tau B. the result of the study showed that major type of cyber fraud in banking system were accounting fraud by bank staff, identity theft, money laundering, hacking/cracking, phishing, pharming, and computer virus. Also, lack of oversight by line managers or senior managers on deviations from existing electronic process/controls, current business pressure to meet set targets, current business pressure to meet set targets, collusion between employees and external parties, insufficient data encryption, the use of services provided by third parties, parodying were the causes of cybercrime in banks. Similarly, findings of the study revealed that lack of standards and national central control, lack of infrastructure, porous nature of the internet, lack of national functional databases, and inadequate awareness by bank customers were the challenges militating the effort towards curbing the cyber fraud in banking system in Nigeria. The findings also revealed that financial loss, reduced productivity, vulnerability of banks Information and Communication Technology (ICT) systems and networks were the effect of cybercrime on banks in Nigeria, and security audit, antivirus and antimalware software, use of multi-factor authentication, use of biometrics, automatic logout were the solutions identified to cybercrime in banks. The study concluded that the place of security in the cyberspace of banks in Nigeria cannot be overstretched therefore necessary measures should be put in place towards mitigating cybercrime in Zenith. The study recommended that Zenith bank should employ stringent measure to monitor staff activities especially in the confidentiality of customer information, cyber security audit should be done by Zenith regularly, sensitization of bank customers, and Multi-factor authentication, biometrics and automatic log out, and strong firewall should be adopted by Zenith bank.