Effect of Digital Accounting Software on Fraud Detection and Prevention in Financial Institution Operating in Nigeria

The paper examine the effect of digital accounting software on fraud detection and prevention in financial institution. Digital accounting software has been introduced as a tool to enhance fraud prevention and detection by automating financial processes, improving accuracy, and strengthening internal controls. However, despite its advantages, the adoption of digital accounting software in Nigerian deposit money banks faces several challenges. Forensic accounting is essential for fraud control and internal audit quality since financial fraud is largely caused by the underutilization of digital forensic techniques. Nigeria's increasing rate of electronic fraud emphasizes the necessity of regulatory action to stop additional losses, due to the increase in fraudulent activity in Nigeria's banking industry, digital forensic accounting tools are now required for fraud detection. This study adopted a survey research design, which the few listed financial institution that have high rating in Nigeria. It was concluded that capacity building and training is low in the sector, technology integrated needed to be practices by staff always while it was recommended that regular training for staff on the effective use of digital accounting software, particularly in fraud detection features such as anomaly monitoring and audit trail analysis and banks should not rely solely on digital tools but integrate them with strong governance frameworks, internal controls, and accountability structures to reduce opportunities for fraud.