Banking fraud costing Nigerian economy dearly
Pervasive electronic banking fraud is affecting Nigeria’s banking system and costing the Nigerian economy dearly. It is also holding back the adoption of cashless technologies and has become an obstacle to financial inclusion in Africa’s second largest economy. Recent data shows that last year electronic fraud in the banking sector accounts for about 16% of total fraud in the industry. The implications of rampant e-fraud are enormous. People who already have a bank account are reluctant to adopt e-banking. And it’s an obstacle to drawing those who don’t have bank accounts into the formal financial system. In Nigeria only 53% of the population is in the banking system. This has broader economic implications because e-banking is known to play a developmental role and because it allows poor people to have access to formal financial services. Our research shows that pervasive e-fraud is also hampering Nigeria’s drive to encourage electronic transactions in a bid to ...