CYBERSECURITY AND FRAUD PREVENTION IN THE NIGERIAN BANKING SECTOR

Abstract

This study examines the effectiveness of cybersecurity strategies in mitigating financial fraud within Nigerian
commercial banks. Against the backdrop of increased digital banking adoption and rising cyber threats, the research
explores how institutional frameworks, authentication systems, and customer awareness programs contribute to
fraud prevention efforts. Adopting a cross-sectional survey design, primary data was collected randomly from 169
respondents with structured online questionnaires via WhatsApp groups and other social media platforms. The Binary
Logistic Regression (BLR) and the Hosmer and Lemeshow Test were utilized to evaluate predictive relationships
between variables. Findings reveal that the perceived effectiveness of bank-led cybersecurity frameworks significantly
reduces the likelihood of fraud victimization. However, biometric and multi-factor authentication systems, as well as
participation in cybersecurity awareness programs, did not demonstrate statistically significant impacts, suggesting
that deployment alone is insufficient without active user engagement. The study buttresses the need for integrated,
user-centred, and innovative technology-driven cybersecurity approaches in Nigeria’s banking sector.