LEGAL EXAMINATION OF CYBER FRAUD IN NIGERIA'S BANKING TRANSACTIONS

The advent of technology has revolutionised the global financial sector and provided unprecedented convenience and efficiency in banking operations. However, this transformation has ushered new challenges, especially the alarming rise in cyber fraud in Nigeria’s banking transactions. The aim of the paper is to examine the multifaceted cyber fraud in banking transactions, with a focus on the relevant provisions of the Cybercrimes (Prohibition, Prevention) Act, 2015. The paper provided an overview of the evolving cyber threat to the banking transactions in Nigeria, thereby outlining the various forms of cyber fraud that continuously affect the Nigeria’s banking transactions. It discussed the tactics employed by cybercriminals to defraud the banks and their respective customers, wherein the criminals include the staff of the bank and third party in order to perpetrate the cybercrime in banking industry. The paper discussed the duties of banks towards mitigating cyber risks, implementation of robust cybersecurity measures and customer sensitisation. It was observed that when a customer is defrauded, hen is required to prove that the bank has failed to put security measures in place to protect his data and/or information. It was also observed that some provisions of the Cybercrimes (Prohibition, Prevention) Act, 2015 did not take into the balance of probability as well as economic impact of the cyber frauds while prescribing the punishment for the offence hence the recommendations to place burden of proof on the bank that the customer has compromised his password or banking details, and the amendment of Cybercrimes (Prohibition, Prevention) Act, 2015 in line with the reality and capacity of the parties to banking transactions.