EFFECT OF FORENSIC ACCOUNTING SERVICES IN MITIGATING CYBERCRIME-RELATED FINANCIAL FRAUD IN NIGERIAN LISTED DEPOSIT MONEY BANKS

Abstract

This study investigates the effect of forensic accounting services on the incidence of cybercrime-related fraud in Nigeria, focusing on five critical determinants: fraud risk assessment practices, internal audit quality, forensic accountant expertise, anti-fraud regulations, and forensic data analytics. Employing a quantitative research design, primary data were collected through structured questionnaires administered to 433 professionals in Nigeria's financial sector, including forensic accountants, auditors, and compliance officers. The data were analyzed using descriptive statistics, Pearson's correlation, and multiple regression analysis. The findings, grounded in the Technology Acceptance Model (TAM) and the Fraud Triangle, reveal that robust forensic accounting measures significantly enhance fraud detection and prevention by strengthening institutional controls and reducing vulnerabilities. Specifically, the study highlights that effective fraud risk assessment practices and high-quality internal audits are pivotal in identifying and mitigating cyber fraud risks. The expertise of forensic accountants, coupled with stringent anti-fraud regulations and the application of forensic data analytics, further bolsters the financial sector's resilience against cybercrime. Based on these insights, the study recommends the mandatory establishment of forensic accounting units within financial institutions, increased adoption of advanced data analytics tools, and stricter enforcement of cybercrime laws. Implementing these measures could potentially reduce Nigeria's cyber fraud losses by 40–60%, offering valuable guidance for policymakers, regulators, and organizations in developing economies confronting similar challenges.