MINIMIZATION OF BANK FRAUD IN NIGERIA COMMERCIAL BANKS

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Since the inception and recognition of bank in Nigeria. it has been in a head way of existence and survival. This is because since the emergence of this area of economic and business knowledge, fraud and all forms of dishonesty and misappropriation of money entrusted to one had obviously to Nigeria banks. This defect has been lingering in the minds of honest bank employee and the student majoring into the banking profession too give potential thought as to the near future perfection of the banking and finance as a discipline fraudulent actives in the Nigerian banks have grown so great in strength, rigor and vigor that most of the banks are exposed to great risk of losses inspire of all modern sophistionted security advices employed in the dally operation and function by Nigeria banks. Banking industry is the bed rock of any developing and developed economy the world over. It is therefore very important to find out any problem that rises to to disrupt those industries. Every transactions involved in international trade is done through the banks and this is what depicts the direction of any economy all over the world.

Industrial development and establishment project financing etc are all done through banks therefore the eradication fraud in banks is the concern of every worthy patriot of this great nation, fraud is an international misrepresentation consentient for the purpose of inducing a mother in reliance upon it to pant with some valuable things, money properties belonging to him or generally to surrender a legal right. Although the existence of fraud in our banks is not our uncommon or unexpected phenomenon. It is worrying because “of all the various problems conformity the Nigeria banking industry today that of fraud is easily the most intractable. The banking industry worries more about fraud because of the rather obvious damaging consequences of the acts on the heaths and for the existence of the institution. According to the Oxford Advanced Learner Dictionary of current English the word “fraud” means criminal deception. This is a straightforward definition. The great master dictionary Hamlin Encyclopedia world dictionary defines “fraud” as:” deceit” tricky sharp practice or breach of confidence by which some one who sought to gain unfair or dishonest advantage any deception artifice and trick. Also, the term fraud can be defined in so many ways “fraud” in the contemplation of a civil court of justice may be said to include all acts, omissions and concealment which involve a breach of legal or equitable dusty trust of confidence justify reposed and are injurious to another or by which an under or unconsciously advantages is taken of another.

Finally, Wale Adewuni describe fraud as a conscious premeditated action of a person or group of persons with the intention of altering the truth and or fact for selfish personal monetary gain. It involves the use of deceit and trick and sometimes highly intelligent cunning and know-how These can emerge as a result of non- strict adherence to documented and established rules and regulation in individual banks and such regulations in individual banks and this has gone a long way in enhancing fraud in our banks and is very bad thing so to say. Also, these skilled professionals in the management level of these banks. Lack of inbuilt accountability devices including having regular auditing of accounts of customers these banks do not organize fraud seeming so as to discuses the problems fraud cause them and fine out these people who actually make fraud possible in their banks and the solutions to these problems lack of proper recruitment and training policy on the part of the banks.