Analysis of the Negative Effects of the Automated Teller Machine (ATM) as a Channel for Delivering Banking Services in Nigeria

Abstract

This paper titled, “Analysis of the negative effects of the automated teller machine (ATM) as a channel fordelivering banking services electronically in Nigeria” proposed that the ATM system of delivering bankingservices not only contribute to the increasing rate of bank fraud but equally lures Nigerians into profligateexpenditure. Using a sample of 600 respondents conveniently selected from two states of the federation (Lagos andAnambra), and analyzing the hypotheses formulated with chi-square, it was found that results were consistent withthe propositions made. Against these backdrops, it was recommended that banks should; strive to increase theirsecurity layers to subvert the tricks of web scammers, limit the amount which customers may be allowed towithdraw at a time and provide electronic alerts to customers’ phone for all transactions carried out on their bankaccounts through ATMs, cooperate instead of competing in stemming the ATM fraud menace and educatecustomers on the need to safeguard their PINs. Government was encouraged to; promulgate laws that will guidee-business including ATMs in Nigeria, provide employment, check the indiscriminate issuance of ATM cards bybanks and so on. Customers were advised to; avoid replying unsolicited mails and text messages, not tocompromise their PINs, maintain a separate account which is not placed under ATM if they are given to impulsiveexpenditure. Interested researchers were as well given a focus for further research.