OSAMUDIAMEN CYNTHIA OSARIEMEN

This study examines the impact of the Central Bank of Nigeria’s (CBN) cashless policy on fraud reduction within the Nigerian banking sector. Introduced in 2012, the cashless policy aimed to modernize Nigeria’s financial system by reducing cash-based transactions and promoting electronic payment systems such as ATMs, POS terminals, internet, and mobile banking. The study investigates whether this transition has effectively minimized fraud or simply transformed its nature from physical to digital. Using a descriptive survey design, data were collected from 100 respondents comprising bank staff, customers, and other stakeholders through structured questionnaires. Chi-square statistical analysis was employed to test the formulated hypotheses. Findings reveal that the cashless policy has significantly improved transaction efficiency, enhanced security, and reduced traditional forms of fraud such as cheque forgery and cash theft. However, challenges such as poor network infrastructure, low digital literacy, and rising cases of electronic fraud persist. The study concludes that while the cashless policy has contributed positively to fraud reduction in Nigerian banks, its full potential can only be realized through stronger cybersecurity measures, improved infrastructure, and continuous public awareness campaigns. It recommends that the CBN and commercial banks intensify investment in digital security systems and customer education to strengthen confidence in cashless transactions