Dynamics of Banking Fraud in Northwestern Nigeria: Prevalence, Impacts, and Mitigation Strategies
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Abstract
Banking fraud poses a significant threat to financial stability worldwide, and Nigeria is no exception. This study investigates the dynamics of banking fraud in Northwestern Nigeria, focusing on Sokoto, Zamfara, and Kebbi States, regions with distinct socio-economic contexts and banking activities. Data were gathered from banking customers, staff, and law enforcement officials using structured questionnaires. The analysis, conducted using SPSS and logistic regression, identified critical demographic predictors of fraud experiences, offering a deeper understanding of the factors influencing fraud vulnerability. Findings reveal that 70.5% of respondents have experienced fraud, with Internet banking fraud being the most prevalent type (49.7%). Younger respondents (aged 25–34) and female participants were more likely to experience fraud, while higher education levels were associated with reduced vulnerability. Regional disparities were evident, with Sokoto emerging as a hub of banking activity and fraud risk, necessitating sophisticated fraud detection systems. In contrast, Zamfara and Kebbi exhibited lower fraud prevalence but required targeted education campaigns to address local challenges. The study recommends adopting advanced cybersecurity technologies, strengthening customer-centric awareness initiatives, and enhancing regulatory frameworks to rebuild trust in financial systems. These measures are essential for promoting a secure and resilient financial ecosystem in Northwestern Nigeria.
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