Fraud and Extravagant Life Styles Among Bank Employees: Case of Convicted Bank Workers in Nigeria

Abstract

Extensive studies have shown fraud to be pervasive in Nigeria. Findings from numerous studies which investigated the typology and occurrence of fraud in the Nigerian financial institutions show that most fraudulent behaviours occur in the banking industry. The researchers however have marginally examined the lifestyles of people who commit these crimes; as such the current study examined the relationship between fraudulent behavior and extravagant lifestyle among convicted bank employees in Nigeria. A total of 600 participants were used for the study, divided into three samples: convicted bankers, non-convicted bankers, and employees other than bankers. Data was collected using demographic questionnaire and the Extravagant Lifestyle Scale (ELAS). The results showed that the convicted bankers had significantly higher ELAS scores than non-convicted bankers and non-bankers (F(2,597) = 26.94; p < .01). The results suggest that fraudsters are likely to have extravagant lifestyles as a result of their fraudulent acts and this is also supported by the findings from the prior studies. The findings have implications for bank management and law enforcement, and as such recommendations are provided.