EFFECT OF ELECTRONIC PAYMENT SYSTEMS ON PAYROLL FRAUD PREVENTION IN SELECTED MINISTRIES IN PLATEAU STATE

Abstract

This study investigates the impact of electronic payment systems on payroll fraud prevention in selected ministries within Plateau State, Nigeria. Specifically, it examines the effects of Automated Payroll Software (APS), Biometric Attendance Systems (BAS), and the Integrated Payroll and Personnel Information System (IPPIS) on fraud prevention. A survey research design was employed, involving 465 questionnaires distributed among accounting and payroll personnel in four ministries. Data analysis utilized multiple regression to assess the relationships between electronic payment system components and payroll fraud prevention. Findings indicate that while Biometric Attendance Systems and IPPIS show significant effectiveness in reducing fraud, Automated Payroll Software does not demonstrate a statistically significant effect. The adjusted R-squared value of 0.693 suggests that APS, BAS, and IPPIS collectively explain 69.3% of the variance in payroll fraud prevention. Recommendations include enhancing BAS infrastructure and optimizing IPPIS functionality to strengthen fraud prevention measures in Plateau State ministries.