Online Fraud Detection on How and

why people commit efraud

Pressure, opportunity and rationalization form the fraud triangle, which information
technology security experts now believe are reasons why people commit electronic
fraud.
Also, the people factor in e-payment fraud is increasing, with greed said to be
responsible for 67% of fraud cases in 2015, while other causes included problems from
debts and gambling, according to Dele Adeyinka, chief digital officer, Wema Bank Plc.
In a presentation, at 7th annual payment systems & fraud conference held in Lagos
recently, Adeyinka, said that explanation behind fraud needs to take account of various
factors, particularly, from the fraudsters perspective.
He cautioned that individuals, financial institutions, other corporate bodies and the
Government, must take serious the motivation of potential offenders; conditions under
which people can rationalize their prospective crimes away and opportunities to commit
crime(s); technical ability of the fraudster and expected and actual risk of discovery after
the fraud has been carried out, as practical steps to nib in the bud e-payment frauds.
A common model that brings together a number of the reasons why people commit
fraud is the Fraud Triangle. This model is built on the premise that fraud is likely to

result from a combination of three factors: perceived pressure; opportunity and

rationalization.
Perceived Pressure: typically based on either greed or need. Greed is said to be
responsible for 67% of fraud cases in 2015. Other causes included problems from debts
and gambling.
Opportunity: Fraud is more likely in companies where there is a weak internal control
system, poor security over company property, little fear of exposure and likelihood of
detection, or unclear policies with regard to acceptable behaviour. Research has shown
that some employees are totally honest, some are totally dishonest, but that many are
swayed by opportunity. Rationalization: Some people may be able to rationalize
fraudulent actions as: necessary especially when done for the business; harmless
because the victim is large enough to absorb the impact and justied- because the
victim deserved it or because I was mistreated, he said.
Also speaking, Kyari Bukar managing director of CSCS, highlighted the need for the
industry to take a closer look at the block chain Technology, Internet of Things (IoTs)
and big Data analysis.
He averred that the future of payment lies in harnessing the benefits these latest
technologies bring, especially in the fight against fraud.
Speakers at the conference which had over 200 high level participation from top
industry experts and public sector including the Nigerian Naval Force, FRSC, members
of CeBIH, ISSAN, CCCOBIN, E-PPAN, commercial banks, E-payment providers, media
houses, IT organizations, research firms, academia, audit firms, mobile payment service
providers, government agencies, etc, agreed that to tackle e-payment fraud, emphasis
must be on the people, process and technology.