ABSTRACT
The purpose of this topic evaluation of fraud control measures in Nigerian banking
sector [a case study of central bank of Nigeria, Kaduna branch] is to aimed at finding
practical means of eliminating, reducing the incidence of fraud in our banking
industries and researcher used both primary and secondary source. Questionnaire
and order interview were administered on a population of 350 person made up of
both staff of central bank and management, the findings derives from respondents
indicate that poor internet system not greed is the main cause of fraud in the
Nigerian banking and recommendation and solution of fraud is a means of
segregation of duties, were officer that past entry should not be responsible for
checking with compulsory annual holiday for all member of the staffs and
organization procedure, development of a good organization structure and career
opportunity for staff so as to have dedicated loyal staff and contented with force and
good training programme is important for staff at all levels.
TABLE OF CONTENTS
Title page
Approval Page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research Question
1.5 Hypothesis of the study
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Definition Of Term
CHAPTER TWO
2.0 Review of Related Literature
2.1 Introduction
2.2 Definition, concept and Theories of fraud
2.3 Mechanism of fraud
2.4 Causes of fraud
2.5 Effect of fraud
2.6 Measures of controlling fraud
CHAPTER THREE
3.0 Research Methodology
3.1 Introduction
3.2 Research Design
3.3 Population Of The Study
3.4 Sampling Design and Techniques
3.5 Source of Data Collection
3.6 Instrument of Data collection
3.7 Justification For the choice.
CHAPTER FOUR
4.0 Data Preset and Analysis
4.1 Introduction
4.2 Presentation Of Data Analysis
4.3 Test Of Hypothesis
4.4 Research Findings
4.5 Summary
CHAPTER FIVE
5.0 Summary, conclusion and Recommendation
5.1 Summary of finding
5.2 Conclusion
5.3 Recommendation
CHAPTER ONE
1.0 Introduction
Fraud is an intentional deception made for personal gain or to damage another
individual. Fraud is a crime and a civil law violation. Defrauding people of money is
presumably the most common type of fraud.
Customers of banks are currently experiencing increase in fraud schemes. Scams
to get a customer personal information can occur through many different means such
as e-mail and telephone
Bank fraud is the use of fraudulent means to obtain money, assets, or other
property owned or held by a financial institution. In many instances, bank fraud is a
criminal offence, while the specific element of a particular banking fraud law varies
between jurisdictions; the term bank fraud applies to actions that employ a scheme
as opposed to bank robbery or theft.
Controlling bank fraud in the financial sector is a major task for all the stake
holders in the sector. Every year, banks lose billions of naira to fraud which comes
in all size and shapes both from external perpetrators and internal employees.
1.1 BACKGROUND OF THE STUDY
In its broadest terms, fraud means obtaining of something of value through
deception. If fraud were described as an industry it would clearly be one of the
fastest growing areas of the economy. One hundred criminals who serve several
periods of imprisonment for armed robbery offence were recently reported that he
wished he had understood earlier in his criminal career how easy it was to commit
fraud. He now considers that fraud involves less traumas, the reward, are far greater
and the penalties substantially fewer than in other form of crime. This study will
address those forms of fraud that target the financial service sector and how the
industry has responded with some measure successful in controlling this ever
increasing problems and other measure that can be geared towards achieving further
results.
1.2 STATEMENT OF THE PROBLEM
As earlier mentioned, the Nigerian banking industry, the back bone of Nigeria
economy is one of the most profitable of higher performance and could achieved
better result in output and obligation to the society. To realize this, the banking
industry will have to perform lending role that can reinstate the economy.
The low level of the performance of the Nigerian banking industry is due to an
array of problems, one of which is the issue of fraud which is one of the most
intractable and monumental problem facing the industry.
The problem of accountability is traceable to the root cause of fraud which results
from poor record keeping misappropriation forging, poor internal control, excess
power given to the executive or management etc.
1.3 OBJECTIVE OF THE STUDY
The primary objective of the research is to evaluate the fraud control measures in
the Nigerian Banks practical means of reducing the incidence of fraud in our bank to
achieve these objectives, the following secondary objective have been specified.
1. To identify the causes of fraud perpetrated in bank
2. To ascertain the effectiveness of various fraud control measures adopted by banks.
3. To determine the effects of fraud in the banking industry and the economy in
general.
By so doing, customer is better informed on the nature, type modes and various
operations of the various frauds and so placed in a better position to prevent and
detect any fraud led activity.
1.4 RESEARCH QUESTIONS
1. What are the causes of fraud perpetrated in banks?
2. How effective is the various fraud control measures adopted in Nigerian Bank in the
prevention and detection of fraud.
3. What are the effects of fraud practices in the Nigerian banking indu
1.5 STATEMENT OF HYPOTHESIS
HO: There is no significant effect of fraud in the banking industry and the
economy in general.
HI: There is no significant relation between greed by bank staff and fraud
perpetrated in banks.
HO: There is no significant relationship between the effectiveness of fraud control
measures instituted by banks and the level of fraud committed in the banks.
HI: There is no significant relationship between fraud committed in the banks and
distress experienced in Nigerian banks.
HO: There is no significant cause of fraud perpetrated in banks.
HI: There is a significant causes of fraud perpetrated in banks.
1.6 SIGNIFICANCE OF THE STUDY
The significance of the research study is hinged on the fact that the fate of the
Nigerian economy is inevitably tied to the structure, direction and survival of the
banking and financial system, it follows therefore that any serious destruction in the
system will not only affect the system alone but the Nigerian economy and the
public in general and the consequences which could leave the economy in jeopardy.
Therefore, the remediation will help take the problem of fraud thereby reducing bank
failures and stabilize the industry.
The research study will go a long way to show the effect of fraud in banks, its
implication on the industry and possible remedies. It also shows the impact of those
remedy on the economy and society in general. Banks and other financial
institutions are expected to gain double from this study. First the study will
highlight operations, lapses and others that give room for fraudulent activities in the
banks and secondly will also stimulate self assessments by banks the research work
will also go a long way in increasing the knowledge of students of banking financial
management accounting, administration and other related discipline.
1.7 SCOPE OF STUDY
The scope of this study research will however be limited to only banking using
central bank of Nigeria (CBN) as a case study.
The study is primarily concerned with the investigation and evaluation of fraud
control measure in the Nigerian banking sector with regard to central bank of
Nigeria (CBN).
1.8 DEFINITION OF TERM
Fraud:
Fraud is an act of or course of deception deliberately practiced to gain unlawful
or unfair advantage deception directed to the detriment of another.
Financial Services Sectors:
This involves all financial institutions such as banks, insurance company etc.
Bank: Is an establishment saddled with keeping money and valuable safely, the
money being paid out of the customer order?
1.9 LIMITATION OF THE STUDY
The following are the constrains faced by the research in the course of carrying
out the work.
1. Finance was a major problem since the researcher is a student and because of the
sample size which is attributed to transportation, photocopying, typesetting etc.
2. Time constraint is another major problem faced as the researcher has to carry out the
work within a short time given by the school for the submission. Time would have
spent in personal observation but time was a problem in spite of the foregoing, the
researcher was still able to carry out the necessary research and got useful date and
information.
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