ABSTRACT
Causes of Frauds and forgeries in banks have not only become incessant but have also been on in increase in recent years. Although frauds and forgeries in banks are global phenomena which have consistence growth according to Nigeria deposit Insurance Corporation (NDIC) Annual report for instance it recorded or show caseN360.2 millions in 2008 to N351.9 millions in 2007. The amount involved in fraud in commercial banks N6million in 2009.
Frauds in banks is clearly unacceptable situation drastic ought to be done to gently stem the tide in view of its image implications for the banking industry and the adverse effects it will have on the economy the study emerges in response to this development. In carrying out this research work, questionnaires were distributed to the respondent for their reactions;egually oral interview were also carried out and some text written by eminent scholars were consulted. The researcher believed all these would give enough information for a sound report. This study therefore seeks to identify the causes and effect of fraud and the following findings were made.
- No adequate internal control system in the banking industry
- Non-periodic review of work by bank management gives loophole and the tendency to commit fraud.
- The law enforcement agencies of the country fail to deal with the fraudsters apprehended.
Table of content
Title page – – – – – – – – i
Approval page – – – – – – – – ii
Dedication – – – – – – – – iii
Acknowledgement – – – – – – – iv
Abstract – – – – – – – – – v
Table of content – – – – – – – vi
CHAPTER ONE
1.0 Introduction – – – – – – – 1
1.1 Statement of problem – – – – – 2
1.2 Objective of the study – – – – – 3
1.3 Research question – – – – – – 3
1.4 Hypothesis – – – – – – – 4
1.5 Scope of the study – – – – – – 4
1.6 significant of the study – – – – – 5
1.7 Limitation of the study – – – – – 6
CHAPTER TWO
2.0 Review of related literature – – – – 8
CHAPTER THREE
Research design and Methodology – – – – 35
3.1 Research design – – – – – – 35
3.2 Area of study – – – – – – – 35
3.3 Population of study – – – – – – 36
3.4 Sources of data – – – – – – 36
3.5 Sampling method – – – – – – 37
3.6 Research instrument – – – – – 37
3.7 Method of investigation – – – – – 38
CHAPTER FOUR
4.0 Date analysis interpretation of result – – 42
4.1 Analysis of operational questions – – – 42
CHAPTER FIVE
5.0 Summary of findings recommendation/Conclusion 51
5.1 Findings – – – – – – – – 51
5.2 Recommendation – – – – – – 53
5.3 Conclusion – – – – – – – 55
Bibliography – – – – – – – – 58
Questionnaire – – – – – – – – 59
CHAPTER ONE
- Introduction
The level of fraud in the present day Nigeria has assumed on epidemic dimension. It has eaten deep into every aspect of our life to the extent a three years old child talk about 419, the name given to the newly discovered fees fraud that is hunting us as nation. Fraud is defined as deceit deliberately practiced in order to gain some advantage dishonestly. For an action to constitute fraud therefore there must be a intended to benefit the perpetrator to the detriment of another person.
Fraud in the Nigeria economy cannot be restricted to the bank alone. Fraud has been find in all sector of the economy and the size of an enterprises usually determines the volume of frauds perpetrated such problems as inadequate manpower, incentives and unsuitable legal framework for dealing with offenders down turn in the economy. It has been resulted in huge financial losses to financial institutions and their customers, share holders and capital based as well as loss of confidence in financial institution.
The increase of frauds has made people to prefer to keep their money at their homes insteady of keeping them in the bank. The fear is now that if this act is not arrested our economy will be detrimented and set back ward.
1.1 Statement of Problems
The problem of this research work resolve around finding out the continuous causes of fraud in all banks and other financial institution why banks been able to find solution to curtail fraud.
Furthermore finding the economic effect of fraud to the total economy and consequences of fraud to our international relationship on global market economy.
1.2 Objectives of the Study
The purpose of this study is to identify the effort of government and its agencies in the prevention and control of fraud. By so doing one would emphasize the tripartite segment involved in fighting this economic crime. The research seek to identify the following:
- The causes of bank fraud in Nigeria
- The nature of bank fraud
- The extent of bank fraud in Nigeria and
- Ways of minimizing or eliminating bank fraud in Nigeria.
- Research Questions
The following research question guided this study are ;
- Does lack of effective internal control lead to bank fraud.
- Does lack of enough motivation causes banking fraud.
- Is bank frauds contribute to the dwindling economy fortune of our economy.
- Hypothesis of the Study
The hypothesis of these research would includes
Hi: To ascertain the continuous causes of bank fraud in all banks.
H2: To ascertain why banks have not been able to find solution that will curtail the high of frauds in the financial institution.
13: To find the economic effects of frauds to the total
economy of the nation.
14: To know its consequences to our international relationship on global market economy.
- Scope and Delimitation of the Study
Bank fraud and its effect on our economy, is an extensive topic that may involve commercial and community banks. The research touches all aspect of banking activities and financial constraints.
Bank fraud in financial institution has been the issue of the day because its tremendous increase especially in economical banks, which they find it difficult to cope with this ugly situation.
- Limitation of the Study
The Limitation of fraud in the economical banks especially in first bank plc Enugu. The persistence increase in bank fraud in commercial bank has post a serious and complicated issues and perhaps the fatal of all the risk confronting banks. The enormity of bank frauds in Nigeria can be inferred from its value, volume and actual loss. A good number of banks frauds never get reported to the appropriate authorities, rather they are suppressed partly because of the personalities involved or because of concern over the negative image effect that disclosure may cause if information is leaked to the general public.
The bank’s customers may lose confidence in the banking industry and this could cause a set back in the growth of the bank in particular. Bank fraud leads to loss of money which belongs to either the bank or customers.
Rapid increase of bank fraud has lead to distress and bank failures in Nigeria.
- Significant of the Study
The research work will be beneficial to banks and financial institution who are directly facing extrication as a result of financial losses to fraud and beneficial to government and general public who are losing huge sums of money to banks without compensation or adequate compensation. And customers relationship with the bank has greatly hampered as a result of fraud.
This project will also be beneficial to general public who are losing huge sum of money to banks that are declared distress without adequate compensation.
REFERENCE
ABIOLA IDOWU (2009). As Assessment of fraud and its
Management in Nigeria commercial banks European Journal of social science volume 10.
AIGBOKHAVEVBOLO .O. (2001). Frauds And Commercial
Banks in Nigeria
EZE J.C. (2004) Principle and Technique of Auditing. Volume
- ENUGU: Computer Edge Publisher.
EZEKIEL OSENI (2006) Across the counter frauds in the
Banking industry National Accountant Journal.
FATADA M.A. (1994) Fraud Banks way out. Lagos: Daily
times Nigeria Ltd.
ISHOLA K.A. Bank Fraud Causes and control. Lagos:
National Accountant volume 7.
OKORIE ONOVO (2001). Practical Auditing and Investigation
Enugu: Immaculate publication.
ONWUZULIKE (2000). Fifting fraud in Nigeria Banking
system Association V.N.N 6th edition
ORJIH J. (2009). Business research Methodology, Enugu:
Meteson Publicity Company.
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