IMPLICATIONS OF FRAUD ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The study examined the implications of fraud on the performance of deposit money banks in Nigeria for the period of 2005 to 2020. The study utilized secondary data on profitability ratio of deposit money banks as proxy for the performance of deposit money banks, while percentage of cheque fraud, percentage of fraudulent invoices and payments, percentage of fraudulent loans, and percentage of money laundering were the independent variables sourced from Statistical Fact Database of Deposit Money Banks in Nigeria. The study used Ordinary Least Square Multiple Regression as its method of data analysis. The regression results revealed that cheque fraud rate, fraudulent invoices and payments, fraudulent loans, and money laundering had negative implications on the performance of deposit money banks in Nigeria within the study period. Based on the findings, the study recommended that deposit money banks in Nigeria should put in place fraud detection mechanisms and establish efficient fraud detection departments to enhance their performance.