2024/07/20 by Okpa, Martins Myke-Okoi
#Bank Performance #CRMG #Cybercrime #Cybersecurity #Malware #Phishing #Skimming
paper · doi:10.60787/ijsi.v11i4.44
The incidence of cyber fraud and crimes has increased exponentially in the financial industry, with excruciating consequences on commercial banks as a result of technological advancements, adopted to meet customers’ needs and gain competitive advantage. Due to the ever-increasing causes, this study examines the effects or impact of cybercrime on financial institutions performance. Specifically, the study investigates the prevalence of cybercrimes recorded by commercial banks and the effect on the performance of the banks. This paper is anchored on the differential opportunity theory. The survey research design was adopted, and questionnaires administered on 323 staff of sixteen (16) commercial banks located in Calabar Metropolis. Three hundred respondents completed and returned their questionnaires. The data collected were analysed using SPSS 26, with descriptive and correlation analyses performed on the data. The hypotheses were tested using Ordinary Least Square (OLS) regression technique. From the analyses, it was found that the four major cybercrimes recorded by commercial banks in Calabar were Phishing, Skimming, Malware and Distributed Denial of Service crimes. The test of hypotheses revealed that these four cybercrimes significantly jeopardize the performance of Commercial banks. The study concludes that cybercrimes expose commercial banks to liquidity shocks, increased credit risk, loss of business information, loss of reputation, financial losses and loss of operational efficiency. This study contributes to gaining more insight into the impact of cybercrime in the banking sector, and recommends that cyber risk management techniques be effectively implemented by banks, if they must continue in operation and earn returns on their investments.