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MANAGING FRAUD IN CONTEMPORARY BUSINESS ENVIRONMENT, THE ROLE OF INFORMATION SECURITY MANAGEMENT: A STUDY OF QUOTED DEPOSIT MONEY BANKS (DMBs) IN NIGERIA

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  • Onajero Kensington OHWO

    (Babcock University, Ilesan, Nigeria)

Abstract

Every economy relies on the banking sector to boost economic growth and development because of its intermediary role. However, the Nigerian banking sector has been plagued with the risk of fraud which has led to the loss of huge amounts of money annually. This challenge has put pressure on the management of banks on how best to curb the fraud scourge. Although several studies which relied majorly on the traditional method of fraud management have been carried out on how to reduce the frequent occurrence of fraud in the banking sector, the problem persists. Therefore, this study took a different approach to examine the role of information security management on fraud risk management in Deposit Money Banks (DMBs) in Nigeria. The study employed a survey research design. The population of the study was 1,030 staff of the Internal Control, Internal Audit and Information Technology departments of DMBs in Nigeria. A sample size of 288 was determined using Taro Yamane’s formula. The respondents were purposively selected from 12 listed banks as at 31st January 2024 due to the role they play in fraud risk management. A structured and validated questionnaire was distributed and 99.7% response rate was achieved. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.864 to 0.952. Descriptive and inferential (multiple regression) statistics were used to analyze the data. Utilizing a regression model, the research examines three key proxies of information security management: Application Security Control (ASC), Access/Authentication Control (AAC), and Network Security Control (NSC) and one proxy (Fraud risk governance - FRG) for fraud risk management The model reveals that both ASC and AAC have significant positive effects on FRG, with coefficients of 0.216 and 0.247, respectively, while NSC, with a coefficient of 0.080, does not significantly influence FRG. The model's adjusted ??2 value of 18.9% indicates that these controls collectively explain a modest portion of the variability in FRG, suggesting the presence of other influential factors. The findings highlight that strengthening ASC and AAC can substantially enhance fraud risk governance in Nigerian DMBs, whereas NSC requires further investigation to understand its role. The significance of the overall model, supported by an F-statistic of 21.939 (p

Suggested Citation

  • Onajero Kensington OHWO, 2024. "MANAGING FRAUD IN CONTEMPORARY BUSINESS ENVIRONMENT, THE ROLE OF INFORMATION SECURITY MANAGEMENT: A STUDY OF QUOTED DEPOSIT MONEY BANKS (DMBs) IN NIGERIA," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 225-241, November.
    • Handle: RePEc:aio:manmar:v:xxii:y:2024:i:2:p:225-241
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    References listed on IDEAS

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    1. Kehinde Adekunle Adetiloye & Felicia Omowunmi Olokoyo & Joseph Niyan Taiwo, 2016. "Fraud Prevention and Internal Control in the Nigerian Banking System," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1172-1179.
    2. Madan Lal BHASIN, 2016. "The Role Of Technology In Combatting Bank Frauds: Perspectives And Prospects," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-28.
    3. Sheppard, Blair H & Hartwick, Jon & Warshaw, Paul R, 1988. "The Theory of Reasoned Action: A Meta-analysis of Past Research with Recommendations for Modifications and Future Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 325-343, December.
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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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