AN ASSESSMENT OF AUTOMATED TELLER MACHINE FRAUD IN NIGERIA BANKS: A CASE STUDY OF UBA CUSTOMERS

ABSTRACT: The utilisation of automated teller machines (ATMs) has experienced significant growth in popularity due to their cost-effectiveness in bank transactions and the convenience they offer to customers. As a result, ATMs have become an essential component of contemporary financial service provision. Nevertheless, the automated teller machine (ATM), originally designed to enhance customer service, has unfortunately transformed into a source of distress for many individuals due to fraudulent activities carried out through unauthorised ATM withdrawals, resulting in unauthorised transactions in their accounts. The primary objective of this study is to analyse the fraudulent actions involving ATM PINs and assess their impact on the expansion of financial institutions and customers' inclination to utilise banking services. The researcher employed a case study approach, utilising four banks as the subjects of investigation in this research endeavour. Data was gathered through the utilisation of questionnaires, interviews, and observations from the four banks that were included in the study. Three hypotheses were examined utilising the chi-square statistical method, revealing a noteworthy association between ATM fraud and fraud in Nigeria. Additionally, it was noted that ATM fraud has an impact on client patronage and the growth of financial institutions. In summary, it is imperative to exercise vigilance in monitoring the activities of fraudsters and implement appropriate steps to effectively limit instances of fraudulent behaviour. In order to address this issue, it is advisable to implement an additional security layer on the ATM and ensure diligent monitoring of the ATM machine by the respective institutions. It is believed that the implementation of the proposals outlined in this study by banks and service providers will result in a more secure, convenient, and valuable banking experience inside the country.