Forensic Accounting Mechanism as a Tool for Detecting and Preventing Online Fraud: Evidence from Nigeria Deposit Insurance Corporation (NDIC)
Fraud detection in financial transactions is a major challenge for financial institutions, merchants, and consumers, as traditional rule based methods often fall short against increasingly sophisticated fraud. This study examines the role of forensic accounting mechanisms in detecting and preventing online fraud, focusing on the Nigeria Deposit Insurance Corporation (NDIC). Using a case study design, the research surveyed 150 staff across three NDIC offices (Lagos, Abuja, and Port Harcourt), distributing 50 questionnaires per office. Content validity and Cronbach’s Alpha were applied to ensure the validity and reliability of the data. Findings show that forensic accounting has a positive and significant impact on preventing online fraud. The study recommends that regulatory bodies, such as the NDIC, should mandate the adoption of robust forensic accounting practices across financial institutions, including continuous staff training, digital audit systems, and standardized fraud monitoring protocols, to strengthen detection and prevention of online fraud. Keywords: Detection of fraud, financial institutions. forensic accounting, online fraud, prevention of Fraud. JEL Classification code : M, M4, M42, M49
Keywords: Forensic Accounting, Detection of Fraud, Prevention of Fraud, Online Fraud, Financial Institutions.
Citation: Adebayo, G.A., Okikiri, M.J. & Olopade, G. (2026). Forensic Accounting Mechanism as a Tool for Detecting and Preventing Online Fraud: Evidence from Nigeria Deposit Insurance Corporation (NDIC). International Journal of Innovative Research in Accounting and Sustainability, 11(1), 93-103.