Adoption of Artificial Intelligence for Fraud Detection in Deposit Money Banks in Nigeria

Abstract

This paper investigates the integration of artificial intelligence (AI) for fraud detection in internationally authorised banks, focusing on Nigerian banking institutions. The research was conducted exclusively within the Information and Communication Technology (ICT) departments of eight international authorised banks in Nigeria. The study administered questionnaires to bank staff in order to gather in-depth insights using a descriptive survey research design and quantitative methods. The questionnaire format was chosen for its ability to elicit detailed information relevant to the research inquiry. Data analysis was performed using Statistical Package for the Social Sciences (SPSS) and Structural Equation Modelling—Partial Least Squares (SEM-PLS), revealing a significant positive correlation between AI utilisation and enhanced fraud awareness. The findings suggest that AI implementation can significantly enhance the quality and security of banking transactions. In conclusion, the study advocates for deposit money banks to embrace AI technologies in their operations and collaborate with reputable cybersecurity firms for ongoing updates and support.