THE ROLE OF INFORMATION TECHNOLOGY IN ENHANCING FRAUD DETECTION AND PREVENTION AMONG STAFF OF FIRST BANK NIGERIA LTD

INTRODUCTION 1.1 Background to the Study Globally, the advancement of Information Technology (IT) has transformed the banking sector by improving operational efficiency, service delivery, and customer satisfaction. Contrarily these technological improvements have also created vulnerabilities, particularly with respect to financial fraud. In the early stages of modern banking, fraud detection largely depended on manual oversight, internal audits, and post-transaction checks(Adetunji, 2023). With the digitization of banking services, fraud schemes have evolved in complexity, ranging from identity theft to insider collusion and phishing scams. Financial institutions are increasingly relying on IT-based systems for early fraud detection and prevention mechanisms, including automated alerts, biometric verification, and forensic accounting software. Although several banks have adopted IT systems for fraud management, scholarly investigations on the interplay between IT infrastructure, staff involvement, and actual fraud prevention outcomes remain limited. Hence, this study will examine The Role of Information Technology in Enhancing fraud Detection and prevention among staff of First Bank Nigeria Ltd. 1.2 Statement of the Problem The rise in cyber-enabled fraud and internal manipulation in the Nigerian banking sector has raised concerns regarding the effectiveness of existing IT tools in curbing financial malpractices. According to Adegboye and Salihu (2023), internal staff remain critical points of vulnerability due to privileged access to core systems and customer data. While IT infrastructures such as enterprise fraud management systems and forensic audit tools exist, their utilization among operational staff varies significantly. These gaps suggest that the issue may not solely be technological but also procedural, raising questions about IT literacy, compliance, and monitoring practices (Ogunleye & Olayemi, 2023). In First Bank Nigeria Ltd, periodic fraud reports reveal loopholes in system surveillance, delayed anomaly reporting, and insufficient use of real-time data analytics (Uche & Obi, 2024). The implementation of IT-based fraud solutions appears uneven across departments, and employee engagement with these systems is not systematically assessed. Moreover, there is a lack of empirical evaluation on the actual effectiveness of IT tools in curbing staff-related fraud. Existing studies have largely focused on customer-side fraud, regulatory frameworks, or general cyber threats, with limited emphasis on how IT can be leveraged internally to detect and prevent fraud perpetrated or abetted by staff. This study will fill this gap by evaluating IT tools used, staff usage patterns, and institutional readiness to harness IT for internal fraud control within First Bank. 1.3 Objectives of the Study The main objective of the study is to examine the role of information technology in enhancing fraud detection and prevention among staff of First Bank Nigeria Ltd. The specific objectives are to: i. Assess the types of information technology tools currently used in fraud detection and prevention by First Bank staff. ii. Evaluate the extent of staff engagement with IT systems for identifying and reporting fraudulent activities. iii. Determine the effectiveness of IT tools in reducing fraudulent activities among staff in firstbank. iv. Examine factors affecting the use of IT in fraud in fraud detection and prevention among First Bank staff v. Propose strategies to enhance IT-driven fraud prevention mechanisms within First Bank Nigeria Ltd. 1.4 Research Questions The study will be guided by the following research questions: i. What IT tools are currently employed by First Bank staff in fraud detection and prevention? ii. How actively are staff engaged in using IT systems to detect or report fraud? iii. To what extent are IT tools effective in curbing staff-related fraud in the bank? iv. What are the factors hindering IT-driven fraud detection and prevention within First Bank Nigeria Ltd.? v. What strategies can improve the use of IT in enhancing fraud detection and prevention among staff in First Bank Nigeria Ltd? 1.5 Research Hypotheses The following hypotheses will be tested : H₀₁: There is no significant relationship between the use of IT tools and fraud detection effectiveness among staff. H₀₂: Staff engagement with IT systems does not significantly influence fraud prevention outcomes. H₀₃: The use of IT tools does not significantly prevent internal fraudulent practices in First Bank Nigeria Ltd. 1.5 Justification for the Study This research is justified by the increasing threat posed by internal fraud in Nigerian banks and the need for empirical evidence on how IT tools can be strategically applied within organizational settings. First Bank Nigeria Ltd, with its extensive branch network and digital infrastructure, offers a relevant case for understanding how internal IT mechanisms influence fraud detection effectiveness. Furthermore, the findings will provide actionable insights for bank managers, auditors, IT specialists, and regulatory authorities. By evaluating both technological and human dimensions, the study will contribute to the body of knowledge on banking fraud, technology adoption, and risk governance in emerging economies. This research also aligns with Nigeria’s broader digital financial inclusion agenda and the banking sector’s push toward operational transparency. 1.6 Scope of the Study This study will examine the application of information technology in detecting and preventing internal fraud among bank staff, focusing on system usage, staff competence, and institutional barriers. It will not cover customer-related fraud or external cyberattacks. The study will be conducted in selected branches of First Bank Nigeria Ltd within Lagos State, where the bank has a significant operational footprint and diverse staffing structure. Lagos is chosen for its metropolitan dynamics and high concentration of financial activities. 1.7 Definitions of Terms Information Technology (IT): The use of computer systems, software, and networks to store, process, and transmit data, enabling organizations to manage operations, improve efficiency, and enhance decision-making. Fraud Detection: The process of identifying unusual or suspicious transactions, behaviors, or patterns within financial systems that may indicate fraudulent activity, often using technological tools, statistical models, or artificial intelligence Fraud Prevention: A set of proactive strategies, internal controls, and technological measures designed to reduce the risk of fraudulent activities by deterring, monitoring, and mitigating potential threats before they occur.