ELECTRONIC-FRAUD IN ONLINE BANKING PAYMENTS AND AUTHENTICATING DETECTION TECHNIQUES IN BANKING INDUSTRY: A CASE STUDY OF ZENITH BANK PLC. IN CROSS RIVER STATE, NIGERIA
Keywords:
Fraud, banking, techniques, authenticating and biometricAbstract
This study investigated electronic fraud in online banking payments and authentication detection techniques in the banking industry, using Zenith Bank Plc. in Cross River State, Nigeria, as a case study. Specifically, the study assessed how biometric verification mitigates electronic fraud in online banking and examined the effectiveness of automatic lockout mechanisms in reducing online banking fraud. The study was anchored on the Routine Activity Theory. A survey research design was adopted for the study. The target population comprised 1,268 respondents, consisting of 148 staff of Zenith Bank Plc. and 1,120 active online banking customers across selected branches in Calabar, Ikom, and Ogoja, Cross River State. Using Taro Yamane's formula. A sample size of 200 respondents was selected through purposive, stratified random, and simple random sampling techniques. Data were collected using a structured questionnaire. The reliability of the instrument was confirmed using Cronbach's Alpha coefficient of 0.85. Data were analyzed using the Chi-square at the 0.05 level of significance. The first hypothesis revealed a statistically significant relationship between biometric verification and the reduction of electronic fraud (χ² = 28.13). The second hypothesis established a significant positive relationship between biometric verification and effective fraud prevention (χ² = 48.49). The study concluded that digital banking has enhanced the efficiency and accessibility of financial services, it has simultaneously increased exposure to sophisticated electronic fraud. The study recommends that financial institutions should deploy multi-modal biometric authentication systems alongside real-time fraud monitoring solutions to enhance the detection and prevention of electronic fraud in online banking.
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