CASHLESS POLICY

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

The study examined electronic fraud during the era of cashless policy in Nigeria: a case of bank customers in Benin-city. It investigated the causes of electronic fraud, the response to electronic fraud and the effects of electronic fraud. A questionnaire was used in the study and a total of one hundred and fifty nine (159) responses were gotten. The study utilized descriptive statistics and Chi-square test regression methodology to analyses the relationship between electronic fraud and cashless policy. Findings revealed revealed that fraud and value of ATM transactions in Nigeria are positively and significantly related. This finding corroborates Nigeria Inter-Bank Settlement Scheme NIBSS (2014) which argued that the ATM was the major transactions for fraudulent activities in terms of volume due to the fact that it experienced the highest number of fraudulent transactions in 2014. This is in accordance with fraud triangle theory and diamond theory that explained the four factors that are common in incidences of fraud which one of them is perceived opportunity