Diverse Strategies of Banking Fraud in Nigeria (IMTFI Blog)

A major snag since the introduction of Nigeria’s cashless policy is pervasive electronicbanking fraud (e-fraud). Although the policy was aimed at encouraging electronictransactions, reducing physical cash in the economy and thereby reducing the risk ofcash related crimes, fostering transparency, curbing corruption/leakages and drivingfinancial inclusion, the perpetration of fraud threatens the cashless ecosystem. Theimplications of rampant e-fraud are enormous, not only for the banked populationadopting e-banking as a secure platform but also for the obstacles it poses to effectivelycapture the unbanked populace. Initial investigations show that with the prevalence offraud and subscriber victimization, there is a growing fear of migrating to and usingelectronic banking, while those defrauded are altogether opting out of e-banking. The Nigeria Deposit Insurance Corporation (NDIC) annual report stated a total of 3,756 fraudcases in 2013 involving N21.79billion, which represented a 21 percent increase from2012. Curiously, about half of the actual loss occurred within the first three months of2013. Looking between these aggregate pictures, the NDIC 2013 report also offers anelaborate list of fourteen major fraud channels - automated teller machine (ATM) fraudbeing the leading source. In a climate of mounting complaints from e-bankingcustomers/subscribers, we investigated the dimensions of e-fraud in Nigeria’s cashlessecosystem. We collected data in Oyo, Ogun and Lagos States and employed qualitativemethods of in-depth and key informant interviews with fraud victims, bank officials andfraud investigators at the Economic and Financial Crimes Commission (EFCC).Read final report: escholarship.org/uc/item/53g3d5c

Automated Teller Machine (ATM) Uses and Challenges in Southwest Nigeria (IMTFI Blog)

This study investigates automated teller machine (ATM) fraud in southwest Nigeria, with the prime determinant of analysis relying on the perspective of the victim. The primary research questions are: How do banks cope with ATM fraud challenges? How do mobile money service providers characterise ATM fraud and their victims? The study triangulates the Victims Precipitation theory (VPT), Lifestyle theory (LT) and Routine Activity theory (RAT) to explain how ATM fraud affects its victims

'Bleeding Nigeria through the Pipelines': Understanding Oil pipeline Vandalism in Arepo, Southwest Nigeria

Crude oil has been the mainstay of the Nigerian Economy for decades. However, vandalism, oil theft and bunkering are flourishing criminal activities that have impeded the growth of the oil sector and invariably the economic development of the country. The study explored the modes of operation used by vandals and the networks of individuals involved in the vandalization of the oil pipelines in Arepo area of Ogun State, Nigeria. Using largely qualitative method of data collection, 25 participants were purposively selected while opinion were sampled and gathered through in-depth (IDI) and key informant interviews (KII). A total of 15 IDIs was conducted to sample opinions of NSCDC members while 10 KIIs conducted comprised of Arepo community leaders and residents. Successful vandalisation of oil pipelines in Arepo community occurred majorly due to the connivance of the security agents and the sponsors of vandalization (usually influential Nigerians). Some members of Arepo town acted as informants to vandals while they were in return provided with the proceeds of vandalism. Findings further showed that the terrain of buried pipelines influenced successful vandalism operation and impede surveillance. Although vandalism soared higher during raining season, the vandals operated mostly at night. Vandals had uniforms, used hotels as hide outs and made use of encoded words to disguise their operations. Arising from the study’s findings, satellite tracking of geo information system will effectively enhance the policing of the networks of pipelines rather than relying on state agents

Dimensions of Electronic fraud and Governance of Trust in Nigeria’s cashless Ecosystem (Final Report)

A major downside of the cashless policy introduced in Nigeria since 2014 has been pervasive electronic frauds (e-frauds). Consequently, there is a growing fear of victimization among bank customers interfacing decision to migrate and utilize electronic banking. This raises the importance of trust governance in electronic banking and its centrality to the transition to a cashless economy in Nigeria. This study investigated e-Banking fraud and the role trust governance plays in the adoption or refusal to migrate and use electronic banking in Nigeria. The study was conducted in Lagos, Ogun and Oyo States. Using mixed qualitative methods (In-depth and Key Informants interviews) of data collection, participants were mainly purposively selected and in some instances reached through the snowball methods. Qualitatively, 30 victims of e-banking fraud were interviewed across the research settings. Further, purposive sampling proportionate to research settings was used to select at least 9 (3 in each state) bank officials in e-banking unit. To collect data at the e-banking governance level, we purposively selected participants in Nigerian Deposit Insurance Corporation (NDIC), Economic and Financial Crimes Commission (EFCC), and Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN). In these three institutions, we interviewed one Executive member and two officials in fraud and risk management unit. In all, 9 participants were interviewed to provide data on dimensions of fraud, customer complaints and fraud mitigation mechanisms. Furthermore, 600 copies of a questionnaire (200 in each state) were on bank customers using e-banking and who have used any of the e-payment platforms. The questionnaire probed into reasons for adoption, concerns of trust, experiences of trust and perceived susceptibility to fraud. Qualitative instrument explored experiences of victimization and trust in cashless policy. Quantitative data will be subjected to univariate and bivariate analyses while qualitative data will be subjected to content analysis and ethnographic summaries. &nbsp

Automated Teller Machine Fraud in Southwest Nigeria: The Shoe-wearers’ Perspectives (Final Report)

This study investigated Automated Teller Machine (ATM) fraud in southwest Nigeria since extant studies have not examined the unintended consequences of ATM subscription, particularly from the victims’ perspective. Using a sequential exploratory strand of mixed methods, data was collected from both ATM users and victims of ATM fraud using a multi-stage sampling procedure. This involved purposive selection of participants in Lagos and Oyo states. The prime category of participants, namely ATM fraud victims, was reached through the snowball method. In-depth interviews were conducted, while key informant interviews with the police and bank officials in charge of ATM were also conducted. Copies of a questionnaire were administered to students, businessmen and women, civil servants, artisans, and lecturers in the two states. The findings showed that fraudsters were mostly victims' children, friends, relatives, and lovers. The effects of fraud on the life chances of victims included business collapse, deferment of housing needs, psychological trauma, and financial insecurity. Arising from the findings, we recommend a policy which would consider the peculiar socio- demographics of customers to engender financial inclusion

Characterizing Rapists and Their Victims in Select Nigeria Newspapers

While offender and victim characterization offers clues to devising preventive strategies and victim therapy, existing studies in Nigeria are yet to capture this empirically. Using two national dailies, about 331 rape cases have been analyzed. The rapists were found to be of the age group 18–55 years. The victims’ age has been reported to be between 1 and 20 years. Rape victims were mostly females (>90%) compared to males. Most of the rapists are labeled as familiar foes meaning, father, relatives, or neighbors. Third-party guardianship is mentioned as predatory

A Routine Activity Analysis of Selected Rape Cases during COVID-19 Lockdown in Nigeria

Using five popular rape victimisation cases which occurred during COVID-19 lockdown in Nigeria, this paper shows how the mastery of routines of rape victims by sexual predators enhanced the success of rape victimisation. Elements of routine activity theory such as motivated offender, attractive targets and absence of capable guardianship is used to analyse each case to signpost and underscore the importance and centrality of active capable guardianship to dislodge and neutralise rape offenders’ routine mastery around attractive targets. The paper recommends mounting capable guardianship to checking growing menace of rape in Nigeria. Attractive target should eliminate risky routines and poisonous relationship which could enhance their chances of sexual violation

Nature of Traffic Robbery Victimisation Experience in Lagos

Traffic robbery is a prevalent disturbing social phenomenon in Lagos State, impacting commuters and transport workers, necessitating an examination of victimization experiences and offender- victim dynamics. The research investigated the nature of traffic robbery victimization experiences, strategies employed by offenders, and the extent of the crime as reported in newspapers. Utilizing content analysis, the study examined 167 traffic robbery cases from 2015 to 2023 as reported in five newspapers using the routine activity theory to understand the dynamics between offenders and victims. The research also discussed the victimization experience and convergence of the offenders and victims, it documented the extent of the crime as captured by various newspapers (Vanguard, Punch. Tribune, Sun and Guardian), and also interrogated the strategies or methods deployed by traffic robbers. The study further addressed the nature and extent of traffic robbery victimization experiences, shedding light on the dynamics of the crime over an eight-year period. Consequently, the common method used by offenders is dispossessing victims of their valuables, leading to fear-driven victim experiences, with spikes in incidents observed in June and December, particularly in Vanguard and Punch publications. Findings reveal that incidents like traffic robbery are fear-driven. Commonly used methods by the offenders include the dispossession of victims' phones and other valuables, and the use of guns. Mitigating crime like traffic robbery in Lagos requires government intervention in providing adequate security personnel to deter and apprehend criminals, improving road infrastructure, enhancing street lighting, and creating job opportunities for vulnerable youth to keep them engaged with activities that would shift their attention from crime and make them productive

“I Prefer to Remain Old School and be Safe”: Fear of Fraud and Governance of Risk in Nigeria’s Cashless Ecosystem

This article provides insight into the prevalence of fraud in Nigeria’s financial cashless ecosystem and how trust is being built in the system to check the growing menace. It is motivated by two overarching questions: Does fear of fraud constitute an impediment to financial inclusion? How does the existence or otherwise of risk governance mechanisms mediate the nexus between electronic fraud and financial inclusion? Using qualitative methods to probe participants in southwestern Nigeria on these issues, the findings show how fear of fraud, indirect experiences of fraud, and fraud governance shape adoption and behaviour in the Nigerian banking system