Journal of Financial Risk Management, 2020, 9, 211-228 https://www.scirp.org/journal/jfrm ISSN Online: 2167-9541 ISSN Print: 2167-9533 DOI: 10.4236/jfrm.2020.93012 Sep. 10, 2020 211 Journal of Financial Risk Management E-Fraud in Nigerian Banks: Why and How? Babatunde Moses Ololade 1* , Mary Kehinde Salawu 2 , Aderemi Daniel Adekanmi 3 1 Department of Accounting and Finance, Elizade University, Ilara-Mokin, Nigeria 2 Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria 3 Department of Accounting, Federal University of Oye-Ekiti, Oye-Ekiti, Nigeria Abstract The advent of the internet and the adoption of e-payment platforms as a convenient means of payment have increased the extent of occurrence of e-fraud and cyber-attacks in Nigerian Banks. The study, therefore, investi- gated why and how e-frauds are perpetrated in the Deposits Money Banks in Nigeria by employees. The survey research design was adopted. Primary data were sourced from 120 fraud investigation officers in the Banks through the administration of structured questionnaires. Data were analysed using simple percentages. Results revealed that e-frauds were perpetrated by the employees whose employment was threatened as a result of not achieving deposit targets and using either expert or legitimate power to connive with other employees to commit e-fraud against the Banks. Furthermore, findings revealed that job losses were occasioned by disruptive technologies and economic challenges which often lead to employees’ disengagement without or little compensation created fear in the mind of employees to commit e-fraud through Phishing, Pharming, and breach of internal checks. The study recommended that un- achievable deposits and sales targets should be discouraged in the Banks through our labour laws. Also, the human resources department of the Banks should institute whistleblowing policy that can assist employees to get a re- prieve from a supervisor that may want to influence them using any form of power to commit e-fraud. Finally, it was recommended that e-fraud con- sciousness of the general users of e-payment channels and employees’ sensi- tization on negative consequences of employees’ e-frauds should be height- ened through frequent education and continuous training. Keywords E-Fraud, Cyber-Attacks, Cyber Security and E-Payment Platforms 1. Introduction The upward swing in the occurrence of e-fraud in the Nigerian business envi- How to cite this paper: Ololade, B. M., Salawu, M. K., & Adekanmi, A. D. (2020). E-Fraud in Nigerian Banks: Why and How? Journal of Financial Risk Management, 9, 211-228. https://doi.org/10.4236/jfrm.2020.93012 Received: July 14, 2020 Accepted: September 7, 2020 Published: September 10, 2020 Copyright © 2020 by author(s) and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY 4.0). http://creativecommons.org/licenses/by/4.0/ Open Access