THE IMPACT OF AUTOMATED TELLER MACHINES (ATM) FRAUDS ON BANKS’ CUSTOMERS IN NIGERIA.

Abstract

Although the use of Automated Teller Machines (ATM) is not only safe but also convenient, the increasing prevalence of ATM fraudsters in the banking sectors call for tight security measures in Nigeria. The impact of ATM frauds in the country is so great that many had lost substantial amount of money, suffered injuries, depression, and even death. This study was therefore carried out to assess the impact of ATM frauds on the Banks’ customers in Nigeria. The study used both cross-sectional and descriptive survey designs. Snowball and purposive sampling method was used in the selection of respondents; and data were generated through in-depth and key informant interview (KII) methods. The rational choice theory provided the theoretical framework. The findings of the study revealed that victims of ATM fraud suffered shock, depression, anger, and emotional trauma. On many instances, victims have been injured, and even killed. The study therefore recommended, among others that banks should make additional efforts to raise awareness on best use of ATM services, and that appropriate protection and control measures against ATM frauds should be installed in the Automated Teller Machines.