Cyber Security and Its Implications on Financial Fraud in Deposit Money Banks in Yenagoa Metropolis, Bayelsa State

Abstract

This study examines the critical role of cyber security in mitigating financial fraud within deposit money banks in Yenagoa Metropolis, Bayelsa State. As digital banking platforms proliferate, the increasing sophistication of cyber-attacks poses significant threats to financial institutions, compromising customer trust and economic stability. This research investigates the prevalence, nature, and implications of cyber-enabled financial fraud, focusing on the vulnerabilities exploited in banking systems and their economic consequences. Employing a mixed-methods approach, data were collected through surveys and interviews with bank officials, cybersecurity experts, and customers, alongside an analysis of reported fraud cases. Findings reveal that weak authentication protocols, phishing attacks, and insider threats are primary conduits for financial fraud, exacerbated by inadequate cybersecurity infrastructure and low digital literacy among customers. The study underscores the urgent need for robust cybersecurity frameworks, including advanced encryption, multi-factor authentication, and regular staff training, to safeguard financial transactions. Furthermore, it highlights the necessity for collaborative efforts between banks, regulatory bodies, and technology providers to enhance resilience against cyber threats. The implications of these findings suggest that strengthening cybersecurity measures not only reduces financial losses but also fosters customer confidence and regulatory compliance. This research contributes to the discourse on securing financial systems in emerging economies, offering actionable recommendations for policymakers and banking institutions in Yenagoa Metropolis to combat cyber-enabled financial fraud effectively.