EFFECT OF CASHLESS BANKING ON INCREASED INSECURITY OF BANKING TRANSACTIONS IN NIGERIAN BANKING SECTOR.

EFFECT OF CASHLESS
BANKING ON INCREASED
INSECURITY OF BANKING
TRANSACTIONS IN NIGERIAN
BANKING SECTOR.
Ozoji Amara Priscilia
Department of Accountancy,
University of Nigeria Enugu Campus,
Enugu. amara.okoye@unn.edu.ng
&
Ezechukwu Beatrice O.;
Department of Accountancy, Federal
Polytechnic, Oko.
beatriceezechukwu@gmail.com
ABSTRACT
This study empirically examined the effect of
cash-less banking on increased insecurity of
banking transactions in Nigeria, with a focus
on the aggregate data of all the banks
operating in the country as at 2012-2018, as
documented in the CBN annual report. The
study adopted an expost facto research
design, thus secondary source of data
collection was employed. Cash-less banking
system as the independent variable of this
study was measured with TATM, TPOS, TMPS
and TIB; whereas the dependent variable,
insecurity of banking transactions was
measured with the level of fraud and forgery
in Nigerian Deposit Money Banks (DMBs).
Data gathered were presented in tables and
analyzed
using
multiple
regression
techniques (ordinary least squares) of model
estimation with the aid of E-Views 10.0
econometric software. Results show thatBook of Abstract
cash-less banking in Nigeria has a positive
and significant effect on the level of fraud
and forgery in Nigerian Deposit Money Banks
(Adjusted R 2 = 95.8%, F- Stat.= 67.56806 and
Prob(F-statistics) = 0.000033<0.05). This
means that the introduction/implementation
of cash-less banking system in Nigeria has
significantly increased the cases of fraud and
forgery in Nigerian banking sector. The
implication is that most of the fraud cases
were perpetrated via cash-less banking
instruments. Based on the findings, a
collaboration and cooperation of various
stakeholders like the government, bank’s
customers and financial institutions were
recommended to combat electronic frauds in
Nigerian banking sector. Specifically, the
government should ensure giving serious
attention to security issues in cashless
banking system with the creation (and
implementation) of legal framework to
promptly prosecute cyber criminals. Every
Banks’ Customer Should Keep his/her online
transaction credentials (user ID, password,
token/PIN) confidential; and should not
install a payment application sent through e-
mail. Such applications should be installed
only from the online stores, examples App
store, play store, Google store etc. Financial
Institutions should ensure continuous review
and security upgrade of its platforms and
services.
Keywords: Cashless banking, Cashless policy,
Fraud and Forgery.

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